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| x                                                                                                                                                                                                           | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934  |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                  |                                                                                     |
| For the quarterly period ended                             March 31, 2010 |
|                                                                                                                                                                                                                  |                                                                                     |
| OR                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                  |                                                                                     |
|  ̈                                                                                                                                                                                                                | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |

|   |    | New Jersey                                                    |    | 20-8444387                           |    |   |
|--------|--------------|---------------------------------------------------------------|--------------|--------------------------------------|--------------|--------|
|   |    | (State or other jurisdiction ofincorporation or organization) |    | (I.R.S. Employer Identification No.) |    |   |
|   |         |                                                          |         |                                 |         |   |
|   |    | 1365 Palisade Ave, Fort Lee, New Jersey                       |    | 07024                                |    |   |
|   |    | (Address of principal executive offices)                      |    | (Zip Code)                           |    |   |
|   |         |                                                          |         |                                 |
|   |    | (201) 944-8600                                                |    |                                 |
|   |    | (Registrant’s telephone number, including area code)    |    |                                 |

|   | Large accelerated filer   |  ̈ | Accelerated filer                     |  ̈ |   |
|--------|-------------------------------------|--------|---------------------------------------|--------|--------|
|   | Non-accelerated filer               |  ̈ | Smaller reporting company   | x      |   |

----

|                                         |   |                                                                                                                  |    | PAGE |
|----------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------------------|--------------|------|
| Part I  Financial Information |
|                                         |   |                                                                                                                  |
| Item 1.                                      |   | Financial Statements:                                                                                                 |    | 3    |
|                                         |   |                                                                                                                  |
|                                         |   | Unaudited Consolidated Statements of Financial Condition  -  March 31, 2010 and December 31, 2009 |         | 3    |
|                                         |   |                                                                                                                  |
|                                         |   | Unaudited Consolidated Statements of Operations – Three Months Ended March 31, 2010 and 2009                    |         | 4    |
|                                         |   |                                                                                                                  |
|                                         |   | Unaudited Consolidated Statements of Cash Flows – Three Months Ended March 31, 2010 and 2009                    |         | 5    |
|                                         |   |                                                                                                                  |
|                                         |   | Notes to Unaudited Consolidated Financial Statements                                                                  |         | 6    |
|                                         |   |                                                                                                                  |
| Item 2.                                      |   | Management’s Discussion and Analysis of Financial Condition and Results of Operations                           |         | 20   |
|                                         |   |                                                                                                                  |
| Item 3.                                      |   | Quantitative and Qualitative Disclosures about Market Risk                                                            |         | 28   |
|                                         |   |                                                                                                                  |
| Item 4.                                      |   | Controls and Procedures                                                                                               |         | 28   |
|                                         |   |
| Part II  Other Information    |
|                                         |   |                                                                                                                  |
| Item 1.                                      |   | Legal Proceedings                                                                                                     |         | 29   |
|                                         |   |                                                                                                                  |
| Item 1A.                                     |   | Risk Factors                                                                                                          | 29           |
|                                         |   |                                                                                                                  |
| Item 2.                                      |   | Unregistered Sales of Equity Securities and Use of Proceeds                                                           |         | 29   |
|                                         |   |                                                                                                                  |
| Item 3.                                      |   | Defaults Upon Senior Securities                                                                                       |         | 29   |
|                                         |   |                                                                                                                  |
| Item 4.                                      |   | (Removed and Reserved)                                                                                                |         | 29   |
|                                         |   |                                                                                                                  |
| Item 5.                                      |   | Other Information                                                                                                     |         | 29   |
|                                         |   |                                                                                                                  |
| Item 6.                                      |   | Exhibits                                                                                                              |         | 29   |
|                                         |   |
| Signatures                                   |   | 30                                                                                                                    |

----

PART

ITEM

BANCORP

|                                                                                                                               |   | March 31, 2010 |    |   | December 31, 2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|-------------------|--------|
| ASSETS                                                                                                                             |   |           |    |   |              |   |
|                                                                                                                               |   |           |    |   |              |   |   |   |
| Cash and due from banks                                                                                                            |   | $              | 846     |   |              | $      | 576 |   |
| Interest bearing deposits                                                                                                          |   |           | 17,841  |   |              |   | 17,055 |   |
| Federal funds sold                                                                                                                 |   |           | 466     |   |              |   | 467 |   |
| Total cash and cash equivalents                                                                                                    |   |           | 19,153  |   |              |   | 18,098 |   |
|                                                                                                                               |   |           |    |   |              |   |   |   |
| Restricted investment in bank stock, at cost                                                                                       |   |           | 419     |   |              |   | 419 |   |
| Securities available for sale, at fair value (amortized cost of $23,008 and $21,005, respectively)                                 |   |           | 23,044  |   |              |   | 21,111 |   |
| Securities held to maturity (fair value of $0 and $4,297, respectively)                                                            |   |           | -       |   |              |   | 4,296 |   |
|                                                                                                                               |   |           |    |   |              |   |   |   |
| Loans receivable                                                                                                                   |   |           | 275,615 |   |              |   | 263,931 |   |
| Deferred loan fees and unamortized costs, net                                                                                      |   |           | 16      |   |              |   | 13 |   |
| Less: allowance for loan losses                                                                                                    |   |           | (3,062  | )      |              |   | (2,792 | ) |
| Net loans                                                                                                                          |   |           | 272,569 |   |              |   | 261,152 |   |
|                                                                                                                               |   |           |    |   |              |   |   |   |
| Premises and equipment, net                                                                                                        |   |           | 10,132  |   |              |   | 10,214 |   |
| Accrued interest receivable                                                                                                        |   |           | 1,521   |   |              |   | 1,173 |   |
| Other assets                                                                                                                       |   |           | 3,071   |   |              |   | 3,145 |   |
| TOTAL ASSETS                                                                                                                       |   | $              | 329,909 |   |              | $      | 319,608 |   |
|                                                                                                                               |   |           |    |   |              |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                               |   |           |    |   |              |   |   |   |
| LIABILITIES:                                                                                                                       |   |           |    |   |              |   |   |   |
| Deposits                                                                                                                           |   |           |    |   |              |   |   |   |
| Noninterest-bearing                                                                                                                |   | $              | 32,105  |   |              | $      | 36,687 |   |
| Savings and interest bearing transaction accounts                                                                                  |   |           | 51,490  |   |              |   | 50,372 |   |
| Time deposits under $100                                                                                                           |   |           | 37,121  |   |              |   | 34,789 |   |
| Time deposits $100 and over                                                                                                        |   |           | 157,796 |   |              |   | 145,295 |   |
| Total deposits                                                                                                                     |   |           | 278,512 |   |              |   | 267,143 |   |
|                                                                                                                               |   |           |    |   |              |   |   |   |
| Accrued interest payable and other liabilities                                                                                     |   |           | 1,317   |   |              |   | 2,930 |   |
| TOTAL LIABILITIES                                                                                                                  |   |           | 279,829 |   |              |   | 270,073 |   |
|                                                                                                                               |   |           |    |   |              |   |   |   |
| Commitments and Contingencies                                                                                                      |   |           |    |   |              |   |   |   |
| Stockholders' equity:                                                                                                              |   |           |    |   |              |   |   |   |
| Common stock, no par value, authorized 20,000,000 shares; issued and outstanding 5,206,932 at March 31, 2010 and December 31, 2009 |   |           | 49,169  |   |              |   | 49,096 |   |
| Retained Earnings                                                                                                                  |   |           | 888     |   |              |   | 373 |   |
| Accumulated other comprehensive income                                                                                             |   |           | 23      |   |              |   | 66 |   |
| Total stockholders' equity                                                                                                         |   |           | 50,080  |   |              |   | 49,535 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                         |   | $              | 329,909 |   |              | $      | 319,608 |   |

----

BANCORP

|                                                      |   | For the Three Months Ended March 31,  |
|-----------------------------------------------------------|--------|---------------------------------------|
|                                                      |   | 2010                                  |   |   | 2009 |
|                                                      |   | (in thousands, except per share data) |
| INTEREST INCOME                                           |   |                                  |   |   |   |
| Loans, including fees                                     |   | $                                     | 3,892 |   |   | $ | 3,378 |
| Securities                                                |   |                                  | 143 |   |   |   | 179 |
| Federal funds sold and other                              |   |                                  | 11 |   |   |   | 42 |
| TOTAL INTEREST INCOME                                     |   |                                  | 4,046 |   |   |   | 3,599 |
|                                                      |   |                                  |   |   |   |   |   |
| INTEREST EXPENSE                                          |   |                                  |   |   |   |   |   |
| Savings and money markets                                 |   |                                  | 41 |   |   |   | 124 |
| Time deposits                                             |   |                                  | 1,004 |   |   |   | 1,605 |
| TOTAL INTEREST EXPENSE                                    |   |                                  | 1,045 |   |   |   | 1,729 |
|                                                      |   |                                  |   |   |   |   |   |
| NET INTEREST INCOME                                       |   |                                  | 3,001 |   |   |   | 1,870 |
| Provision for loan losses                                 |   |                                  | 270 |   |   |   | 61 |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES       |   |                                  | 2,731 |   |   |   | 1,809 |
| NON-INTEREST INCOME- principally fees and service charges |   |                                  | 38 |   |   |   | 38 |
| NON-INTEREST EXPENSE                                      |   |                                  |   |   |   |   |   |
| Salaries and employee benefits                            |   |                                  | 987 |   |   |   | 916 |
| Occupancy and equipment expense                           |   |                                  | 382 |   |   |   | 342 |
| FDIC premiums and related expenses                        |   |                                  | 107 |   |   |   | 41 |
| Data processing                                           |   |                                  | 92 |   |   |   | 79 |
| Professional fees                                         |   |                                  | 128 |   |   |   | 76 |
| Other expenses                                            |   |                                  | 208 |   |   |   | 183 |
| TOTAL NON-INTEREST EXPENSE                                |   |                                  | 1,904 |   |   |   | 1,637 |
| Income before provision for income taxes                  |   |                                  | 865 |   |   |   | 210 |
|                                                      |   |                                  |   |   |   |   |   |
| Income tax expense                                        |   |                                  | 351 |   |   |   | 94 |
| Net income                                                |   |                                  | 514 |   |   |   | 116 |
|                                                      |   |                                  |   |   |   |   |   |
| PER SHARE OF COMMON STOCK                                 |   |                                  |   |   |   |   |   |
| Basic and diluted earnings                                |   | $                                     | 0.10 |   |   | $ | 0.02 |

----

BANCORP

|                                                                          |   | For the Three Months Ended March 31, 2009 |    |
|-------------------------------------------------------------------------------|--------|------------------------------------------------|---------|
|                                                                          |   | 2010                                           |    |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                          |   | (in thousands)                                 |    |
| Net income                                                                    |   | $                                              | 514     |   |   | $ | 116 |   |
| Adjustments to reconcile net income to net cash used in operating activities: |   |                                           |    |   |   |   |   |   |
| Depreciation and amortization                                                 |   |                                           | 104     |   |   |   | 97 |   |
| Provision for loan losses                                                     |   |                                           | 270     |   |   |   | 61 |   |
| Recognition of stock option expense                                           |   |                                           | 74      |   |   |   | 104 |   |
| Changes in operating assets and liabilities:                                  |   |                                           |    |   |   |   |   |   |
| Increase in accrued interest receivable                                       |   |                                           | (348    | ) |   |   | (424 | ) |
| Decrease in other assets                                                      |   |                                           | 101     |   |   |   | 351 |   |
| Decrease in other liabilities                                                 |   |                                           | (1,613  | ) |   |   | (1,142 | ) |
| NET CASH USED IN OPERATING ACTIVITIES                                         |   |                                           | (898    | ) |   |   | (837 | ) |
|                                                                          |   |                                           |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                          |   |                                           |    |   |   |   |   |   |
| Purchases of securities available for sale, net                               |   |                                           | (8,003  | ) |   |   | (14,064 | ) |
| Purchases of securities held to maturity, net                                 |   |                                           | -       |   |   |   | (4,296 | ) |
| Proceeds from sales or calls of securities available for sale                 |   |                                           | 6,000   |   |   |   | 7,391 |   |
| Maturities of securities held to maturity                                     |   |                                           | 4,296   |   |   |   | - |   |
| Net increase in loans                                                         |   |                                           | (11,687 | ) |   |   | (5,876 | ) |
| Purchases of premises and equipment                                           |   |                                           | (22     | ) |   |   | (99 | ) |
| NET CASH USED IN INVESTING ACTIVITIES                                         |   |                                           | (9,416  | ) |   |   | (16,944 | ) |
|                                                                          |   |                                           |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                          |   |                                           |    |   |   |   |   |   |
| Net increase in deposits                                                      |   |                                           | 11,369  |   |   |   | 13,862 |   |
| Exercise of stock options                                                     |   |                                           | -       |   |   |   | 23 |   |
| Exercise of warrants                                                          |   |                                           | -       |   |   |   | 11 |   |
| NET CASH PROVIDED BY FINANCING ACTIVITIES                                     |   |                                           | 11,369  |   |   |   | 13,896 |   |
|                                                                          |   |                                           |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                          |   |                                           | 1,055   |   |   |   | (3,885 | ) |
| Cash and cash equivalents, beginning of year                                  |   |                                           | 18,098  |   |   |   | 40,480 |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                                      |   | $                                              | 19,153  |   |   | $ | 36,595 |   |
|                                                                          |   |                                           |    |   |   |   |   |   |
| Cash paid during the period for:                                              |   |                                           |    |   |   |   |   |   |
| Interest                                                                      |   | $                                              | 973     |   |   | $ | 1,619 |   |
| Income taxes                                                                  |   | $                                              | 555     |   |   | $ | 134 |   |

----

BANCORP

| Note 1.   | Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                | Basis of Financial Statement PresentationThe accompanying unaudited consolidated financial statements include the accounts of Bancorp of New Jersey, Inc., (the “Company”) and its direct wholly-owned subsidiary, Bank of New Jersey (the “Bank”), and the Bank’s wholly owned subsidiary, BONJ- New York Corp..  These financial statements include the effect of the holding company reorganization which took place on July 31, 2007 pursuant to a plan of acquisition that was approved by the boards of directors of the Company and the Bank and adopted by the shareholders of the Bank at a special meeting held on July 19, 2007. The holding company reorganization is accounted for as a reorganization under common control and the assets, liabilities, and stockholders’ equity of the Bank immediately prior to the holding company reorganization have been carried forward on the Company’s consolidated financials statements at the amounts carried on the Bank’s books at the effective date of the holding company reorganization.  The consolidated capitalization, assets, liabilities, results of operations and other financial data of the Company immediately following the reorganization were substantially the same as those of the Bank immediately prior to the holding company reorganization.  Accordingly, these unaudited consolidated financial statements of the Company include the Bank’s historical recorded values. The Company’s class of common stock has no par value.  As a result of the holding company reorganization, amounts previously recognized as additional paid in capital on the Bank’s financial statements have been reclassified into the Company’s consolidated financial statements. These financial statements reflect all adjustments and disclosures which management believes are necessary for a fair presentation of interim results.  All significant inter-company accounts and transactions have been eliminated in consolidation.  The results of operations for the three month periods presented do not necessarily indicate the results that the Company will achieve for the 2010 fiscal year. You should read these consolidated unaudited interim financial statements in conjunction with the financial statements and accompanying notes that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2009 as filed with the Securities and Exchange Commission. The financial information in this quarterly report has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”); these financial statements have not been audited. Certain information and footnote disclosures required under generally accepted accounting principles have been condensed or omitted, as permitted by rules and regulations of the Securities and Exchange Commission. Certain reclassifications have been made to the prior period financial statements to conform to the March 31, 2010 presentation. |

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|                | Organization The Company is a New Jersey corporation and bank holding company registered with the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”).  The Bank is a community bank which provides a full range of banking services to individuals and corporate customers in New Jersey.  Both the Company and the Bank are subject to competition from other financial institutions.  The Bank is regulated by state and federal agencies and is subject to periodic examinations by those regulatory authorities.  The Bank conducts a traditional commercial banking business, accepting deposits from the general public, including individuals, businesses, non-profit organizations, and governmental units.  The Bank makes commercial loans, consumer loans, and both residential and commercial real estate loans.  In addition, the Bank provides other customer services and makes investments in securities, as permitted by law.  The Bank has sought to offer an alternative, community-oriented style of banking in an area, that is presently dominated by larger, statewide and national institutions.  The Bank continues to focus on establishing and retaining customer relationships by offering a broad range of traditional financial services and products, competitively-priced and delivered in a responsive manner to small businesses, professionals and individuals in the local market.  As a community bank, the Bank endeavors to provide superior customer service that is highly personalized, efficient and responsive to local needs.  To better serve its customers and expand it market reach, the Bank provides for the delivery of certain of its financial products and services to its local customers and to a broader market through the use of mail, telephone and internet banking.  The Bank seeks to deliver these products and services with the care and professionalism expected of a community bank and with a special dedication to personalized customer service. |
|---------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Note 2.   | Stockholders’ Equity and Related Transactions                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                | During the three month period ended March 31, 2010, the Company issued no shares of common stock.  During the three month period ended March 31, 2009, the Company issued 2,000 shares of common stock upon exercises of options for an aggregate purchase price of approximately $23 thousand.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
| Note 3.             | Benefit Plans and Stock-Based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                | 2006 Stock Option Plan During 2006, the Bank’s stockholders approved the 2006 Stock Option Plan.  At the time of the holding company reorganization, the 2006 Stock Option Plan was assumed by the Company.  The plan allows directors and employees of the Company to purchase up to 239,984 shares of the Company’s common stock.  At March 31, 2010, incentive stock options to purchase 220,300 shares have been issued to employees of the Bank, of which options to purchase 187,900 shares were outstanding. Under the 2006 Stock Option Plan, there were a total of 54,000 unvested options at March 31, 2010 and approximately $157,000 remains to be recognized in expense over approximately the next three years.  Under the 2006 Stock Option Plan, no options were granted, exercised, or forfeited during the first three months of 2010. 2007 Director Plan During 2007, the Bank’s stockholders approved the 2007 Non-Qualified Stock Option Plan for Directors.  At the time of the holding company reorganization, the 2007 Non-Qualified Stock Option                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

----

|   | Plan was assumed by the Company. This plan provides for 480,000 options to purchase shares of the Company’s common stock to be issued to non-employee directors of the Company.  At March 31, 2010, non-qualified options to purchase 460,000 shares of the Company’s stock have been issued to non-employee directors of the Company and approximately 414,668 were outstanding at March 31, 2010.   No options were granted, exercised or forfeited during the first three months of 2010. Under the 2007 Director Plan, there were a total of approximately 172,666 unvested options at March 31, 2010 and approximately $363,000 remains to be recognized in expense over approximately three remaining years. In connection with both the 2006 Stock Option Plan and the 2007 Director Plan, share based compensation totaled $74,000 and $104,000 for the three months ended March 31, 2010 and 2009, respectively. The aggregate intrinsic value of options outstanding as of March 31, 2010 under the 2006 Stock Option Plan and the 2007 Director Plan was approximately $1.2 million. The aggregate intrinsic value of options outstanding as of March 31, 2009 under the 2006 Stock Option Plan and the 2007 Director Plan was $0, as the per share exercise price of all such options exceeded the per share market value of the underlying common stock. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 4.   | Earnings Per Share.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                | Basic earnings per share is calculated by dividing the net income for a period by the weighted average number of common shares outstanding during that period. Diluted earnings per share is calculated by dividing the net income for a period by the weighted average number of outstanding common shares and dilutive common share equivalents during that period.  Outstanding “common share equivalents” include options and warrants to purchase the Company’s common stock. The following schedule shows earnings per share for the three month periods presented: |

|                                                                           |   | For the Three Months EndedMarch 31, |
|--------------------------------------------------------------------------------|--------|-------------------------------------|
| (In thousands except per share data)                                           |   | 2010                                |   |   | 2009 |
| Net income applicable to common stock                                          |   | $                                   | 514 |   |   | $ | 116 |
| Weighted average number of common shares outstanding- basic                    |   |                                | 5,207 |   |   |   | 5,066 |
| Basic earnings per share                                                       |   | $                                   | 0.10 |   |   | $ | 0.02 |
|                                                                           |   |                                |   |   |   |   |   |
| Net income applicable to common stock                                          |   | $                                   | 514 |   |   | $ | 116 |
| Weighted average number of common shares outstanding                           |   |                                | 5,207 |   |   |   | 5,066 |
| Effect of dilutive options                                                     |   |                                | 29 |   |   |   | - |
| Weighted average number of common shares and common share equivalents- diluted |   |                                | 5,236 |   |   |   | 5,066 |
| Diluted earnings per share                                                     |   | $                                   | 0.10 |   |   | $ | 0.02 |

|   | Non-qualified options to purchase 414,668 shares of common stock at a weighted average price of $11.50; and 187,900 incentive stock options at a weighted average price of $10.24 were included in the computation of diluted earnings per share for the three months ended March 31, 2010. Non-qualified options to purchase 414,668 shares of common stock at a weighted average price of $11.50; 777,498 warrants to purchase shares of common stock at a weighted average price of $10.91 per share; and 198,300 incentive stock options were not included in the computation of diluted earnings per share for the three months ended March 31, 2009 because they were anti-dilutive. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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| Note 5.   | Comprehensive Income                                                                                                                                                                                                                                                                                                                                                                           |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                                                                                                                                                                                                                                                                                                           |
|                | Accounting principles generally accepted in the United States of America requires the reporting of comprehensive income, which includes net income as well as certain other items, which result in changes to equity during the period.  Total comprehensive income is presented for the three month periods ended March 31, 2010 and 2009, respectively, (in thousands) as follows: |

|                                                                                                                  |   | Three months ended March 31, |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------|--------|
|                                                                                                                  |   | 2010                         |   |   | 2009 |   |
| Comprehensive Income                                                                                                  |   |                         |   |   |   |   |
| Net income                                                                                                            |   | $                            | 514    |   |   | $ | 116 |   |
| Unrealized holding loss on securities available for sale, net of taxes of $27 and $21 for 2010 and 2009, respectively |   |                         | (43    | ) |   |   | (42 | ) |
|                                                                                                                  |   |                         |   |   |   |   |   |   |
| Total comprehensive income                                                                                            |   | $                            | 471    |   |   | $ | 74 |   |

----

| Note 6.   | Securities Available for Sale and Investment Securities                                                          |
|---------------------|------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                             |
|                | A summary of securities available for sale at March 31, 2010 and December 31, 2009 is as follows (in thousands): |

| March 31, 2010                              |   | AmortizedCost |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |
|---------------------------------------------|--------|---------------|--------|--------|----------------------|--------|--------|-----------------------|--------|--------|-----------|
| U.S. Treasury obligations                   |   | $             | 2,005  |   |                 | $      | -      |                  |   | $      | (7        | ) |   | $ | 1,998 |
| Government Sponsored Enterprise obligations |   |          | 21,003 |   |                 |   | 109    |                  |   |   | (66       | ) |   |   | 21,046 |
| Total securities available for sale         |   | $             | 23,008 |   |                 | $      | 109    |                  |   | $      | (73       | ) |   | $ | 23,044 |

| December 31, 2009                           |   | AmortizedCost |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | FairValue |
|---------------------------------------------|--------|---------------|--------|--------|----------------------|--------|--------|-----------------------|--------|--------|-----------|
| U.S. Treasury obligations                   |   | $             | 2,005  |   |                 | $      | -      |                  |   | $      | (5        | ) |   | $ | 2,000 |
| Government Sponsored Enterprise obligations |   |          | 19,000 |   |                 |   | 127    |                  |   |   | (16       | ) |   |   | 19,111 |
| Total securities available for sale         |   | $             | 21,005 |   |                 | $      | 127    |                  |   | $      | (21       | ) |   | $ | 21,111 |

|   | The unrealized losses, categorized by the length of time of continuous loss position, and the fair value of related securities available for sale are as follows: |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                        |   | Less than 12 Months     |        |   | More than 12 Months            |   |   |  Total             |
|---------------------------------------------|--------|-------------------------|-------------|--------|--------------------------------|--------|--------|-------------------------|
|                                        |   |   Fair Value  |        |   |   Unrealized Losses  |   |   |   Fair Value  |   |   |   Unrealized Losses  |   |   |   Fair Value  |   |   |   Unrealized Losses  |
| March 31, 2010                              |   |                    |        |   |                           |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury obligations                   |   | $                       | 1,998       |   |                           | $      | 7      |                    |   | $ | - |   |   | $ | - |   |   | $ | 1,998 |   |   | $ | 7 |
| Government Sponsored Enterpirse obligations |   |                    | 11,935      |   |                           |   | 66     |                    |   |   | - |   |   |   | - |   |   |   | 11,935 |   |   |   | 66 |
| Total securities available for sale         |   | $                       | 13,933      |   |                           | $      | 73     |                    |   | $ | - |   |   | $ | - |   |   | $ | 13,933 |   |   | $ | 73 |
|                                        |   |                    |        |   |                           |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009                           |   |                    |        |   |                           |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Treasury obligations                   |   | $                       | 2000        |   |                           | $      | 5      |                    |   | $ | - |   |   | $ | - |   |   | $ | 2000 |   |   | $ | 5 |
| Government Sponsored Enterpirse obligations |   |                    |  5,984 |   |                           |   | 16     |                    |   |   | - |   |   |   | - |   |   |   | 5,984 |   |   |   | 16 |
| Total securities available for sale         |   | $                       | 7,984       |   |                           | $      | 21     |                    |   | $ | - |   |   | $ | - |   |   | $ | 7,984 |   |   | $ | 21 |

|   | The amortized cost and estimated fair value of securities available for sale at March 31, 2010 by contractual maturity are shown below.  Expected maturities will differ from contractual maturities as borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands): |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                    |   | AmortizedCost |   |   | FairValue |
|-------------------------|--------|---------------|--------|--------|-----------|
| One year or less        |   | $             | -      |   |      | $ | - |
| After one to five years |   |          | 15,005 |   |      |   | 15,074 |
| After five to ten years |   |          | 8,003  |   |      |   | 7,970 |
| After ten years         |   |          | -      |   |      |   | - |
| Total                   |   | $             | 23,008 |   |      | $ | 23,044 |

----

|   | Management evaluates securities for other-than-temporary-impairment (“OTTI”) at least on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. In determining OTTI management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than amortized cost; (2) the financial condition and near term prospects of the issuer; (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery.  The assessment of whether an other-than-temporary-impairment decline exists involves a high degree of subjectivity and judgment and is based on information available to management at a point in time.  An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. When OTTI for debt securities, occurs under the model, the amount of the OTTI recognized in earnings depends on whether an entity intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis. If an entity intends to sell or more likely than not will be required  to sell the security before recovery of its amortized cost basis, the OTTI shall be recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date.  If any entity  does  not  intend to  sell  the security  and  it is not  more likely than not that the entity will be required to sell the security before recovery of its amortized cost basis, the OTTI shall be separated into the amount representing the credit loss and the amount related to all other factors.  The amount of the total OTTI related to the credit loss is determined based on the present value of cash flows expected to be collected and is recognized in earnings.  The amount of the total OTTI related to other factors shall be recognized in other comprehensive income, net of applicable tax benefit.  The previous amortized cost basis less the OTTI recognized in earnings shall become the new amortized cost basis of the investment. At March 31, 2010, the Company’s available for sale securities portfolio consisted of 13 securities, of which 8 were in an unrealized loss position for less than twelve months and none were in a loss position for more than twelve months. No OTTI charges were recorded for the three months ended March 31, 2010. The Company does not intend to sell these securities and it is not more likely than not that we will be required to sell these securities. Unrealized losses primarily relate to interest rate fluctuations and not credit concerns. There were no securities held to maturity at March 31, 2010 due to the maturity of a bond anticipation note during the first quarter of 2010, in the amount of $4.3 million.  At December 31, 2009, there was $4.3 million in securities held to maturity.  A summary of held to maturity securities at December 31, 2009 is as follows (in thousands): |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| December 31, 2009                                     |   | Amortized  Cost |   |   | Gross  Unrealized  Gains |   |   | Gross  Unrealized  Losses |   |   | Fair  Value |
|-------------------------------------------------------|--------|---------------------------|--------|--------|----------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-----------------------|
| Obligations of states and political subdivisions |   | $                         | 4,296  |   |                                         | $      | 1      |                                          |   | $      | -                     |   |   | $ | 4,297 |

|   | Securities with an amortized cost of $2.0 million, and a fair value of $2.0 million, were pledged to secure public funds on deposit at March 31, 2010 and December 31, 2009. |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note 7.   | Loans.                                                                                                                 |
|---------------------|------------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                                   |
|                | The components of the loan portfolio at March 31, 2010 and December 31, 2009 are summarized as follows (in thousands): |

|         |   | March 31, 2010 |    |   | December 31, 2009 |
|--------------|--------|----------------|---------|--------|-------------------|
|         |   |           |    |   |              |
| Real estate  |   | $              | 185,792 |   |              | $ | 177,031 |
| Commercial   |   |           | 36,665  |   |              |   | 34,036 |
| Credit lines |   |           | 48,688  |   |              |   | 47,536 |
| Consumer     |   |           | 4,470   |   |              |   | 3,328 |
|         |   |           |    |   |              |   |   |
|         |   | $              | 275,615 |   |              | $ | 261,931 |

|   | The Bank grants commercial, mortgage and installment loans primarily to New Jersey residents and businesses within its local trading area.  Each of its borrower’s ability to repay or otherwise satisfy its obligations is dependent upon various factors, including the borrower’s income and net worth and, if the obligations are secured by collateral, the cash flows generated by the underlying collateral, the value of the underlying collateral, and the priority of the Bank’s lien on the underlying collateral.  Such factors are dependent upon various economic conditions and individual circumstances beyond the Bank’s control; the Bank is therefore subject to risk of loss.  The Bank believes its lending policies and procedures reasonably account for the potential exposure to such risks and that provisions for loan losses are made to maintain an allowance for loan losses which management believes is adequate to absorb probable losses inherent in the loan portfolio. The following tables present the activity in the allowance for loan losses during the periods indicated (in thousands): |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                           |   | Three months ended |
|--------------------------------|--------|--------------------|
|                           |   | March 31, 2010     |   |   | March 31, 2009 |
|                           |   |               |   |   |   |
| Balance at beginning of period |   | $                  | 2,792 |   |   | $ | 2,371 |
| Provision charged to expense   |   |               | 270 |   |   |   | 61 |
|                           |   |               |   |   |   |   |   |
| Balance at end of period       |   | $                  | 3,062 |   |   | $ | 2,432 |

|   | Impaired loans and related amounts recorded in the allowance for loan losses are summarized as follows: |
|--------|---------------------------------------------------------------------------------------------------------|

|                                          |   | March 31, 2010 |   |   | December 31, 2009 |   |
|-----------------------------------------------|--------|---------------------|--------|--------|-------------------|--------|
| Impaired loans without a valuation allowance  |   | $                   | 812    |   |              | $      | 1,181 |   |
| Impaired loans with a valuation allowance     |   |                | 2,777  |   |              |   | 2,777 |   |
| Valuation allowance related to impaired loans |   |                | (175   | )      |              |   | (99 | ) |
|                                          |   | $                   | 3,414  |   |              | $      | 3,859 |   |

|   | As of March 31, 2010 the Bank had five impaired loans totaling approximately $3.6 million, of which two loans totaling approximately $2.8 million had specific reserves of $175 thousand and three loans totaling approximately $812 thousand had no specific reserve.  If interest had been accrued, such income would have been approximately $60 thousand for the three month period ended March 31, 2010.  Within its impaired loans at March 31, 2010, the Bank had one residential mortgage |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                | loan that met the definition of a troubled debt restructuring (“TDR”) loan.  TDRs are loans where the contractual terms of the loan have been modified for a borrower experiencing financial difficulties.  These modifications could include a reduction in the interest rate of the loan, payment extensions, forgiveness of principal or other actions to maximize collection.  At March 31, 2010, the TDR loan has an outstanding balance of $477 thousand, has no specific reserve connected with it and is performing in accordance with its modified terms.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Note 8.   | Guarantees                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|                | The Company does not issue any guarantees that would require liability recognition or disclosure, other than the Bank’s standby letters of credit.  Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party.  Generally, all letters of credit, when issued have expiration dates within one year.  The credit risk involved in issuing letters of credit is essentially the same as those that are involved in extending loan facilities to customers.  The Bank generally holds collateral and/or personal guarantees supporting these commitments.  As of March 31, 2010, the Bank had $725 thousand of commercial and similar letters of credit.  Management believes that the proceeds obtained through a liquidation of collateral and the enforcement of guarantees would be sufficient to cover the potential amount of future payment required under the corresponding guarantees.  Management believes that the current amount of the liability as of March 31, 2010 for guarantees under standby letters of credit issued is not material. |

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| Note 9.   | Fair Value Measurements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|---------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                | The Company adopted the guidance on fair value measurement now codified as FASB ASC Topic 820, “Fair Value Measurement and Disclosures”, on January 1, 2008.  Under ASC Topic 820, fair value measurements are not adjusted for transaction costs.  ASC Topic 820 establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets and liabilities (level 1 measurements) and the lowest priority to unobservable inputs (level 3 measurements).  The three levels of the fair value hierarchy are described below: Management uses its best judgment in estimating the fair value of the Company’s financial instruments, however, there are inherent weaknesses in any estimation technique.  Therefore, for substantially all financial instruments, the fair value estimates herein are not necessarily indicative of the amounts the Company could have realized in sales transaction on the dates indicated.  The estimated fair value amounts have been measured as of their respective period end and have not been re-evaluated or updated for purposes of these financial statements subsequent to those respective dates.  As such, the estimated fair values of these financial instruments subsequent to the respective reporting dates may be different than the amounts reported at the respective reporting dates. FASB ASC Topic 820, “Fair Value Measurement and Disclosures” establishes a fair value hierarchy that prioritizes the inputs to valuation methods used to measure fair value.  The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements).  The three levels of the fair value hierarchy are as follows: |
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                | •     Level 1 Inputs - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.  •     Level 2 Inputs -  Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. •     Level 3 Inputs -  Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e. supported with little or no market activity).                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|                |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                | An asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

----

|   | For financial assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2010 and December 31, 2009, respectively, are as follows (in thousands): |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Description                   |   | March 31, 2010 |   |   | (Level 1)Quoted Prices inActive Marketsfor Identical |   |   | (Level 2)  SignificantOtherObservable |   |   | (Level 3)SignificantUnobservableInputs |   |
|-------------------------------|--------|----------------|--------|--------|------------------------------------------------------|--------|--------|-------------------------------------------------|--------|--------|----------------------------------------|--------|
| Securities available for sale |   | $              | 23,044 |   |                                                 | $      | 1,998  |                                            |   | $      | 21,046                                 |   |   | $ | - |   |

| Description                   |   | December 31, 2009 |   |   | (Level 1)Quoted Prices inActive Marketsfor Identical |   |   | (Level 2)SignificantOtherObservable |   |   | (Level 3)SignificantUnobservableInputs |   |
|-------------------------------|--------|-------------------|--------|--------|------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|----------------------------------------|--------|
| Securities available for sale |   | $                 | 21,111 |   |                                                 | $      | 2,000  |                                |   | $      | 19,111                                 |   |   | $ | - |   |

|   | For financial assets measured at fair value on a nonrecurring basis, the fair value measurements by level within the fair value hierarchy used at March 31, 2010 and December 31, 2009, respectively, follows (in thousands): |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Description    |   | March 31, 2010 |   |   | (Level 1)Quoted Prices inActive Marketsfor Identical |   |   | (Level 2)SignificantOtherObservable |   |   | (Level 3)SignificantUnobservableInputs |   |
|----------------|--------|----------------|--------|--------|------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|----------------------------------------|--------|
| Impaired Loans |   | $              | 2,602  |   |                                                 | $      | -      |                                |   | $      | -                                      |   |   | $ | 2,602 |   |

| Description    |   | December 31, 2009 |   |   | (Level 1)Quoted Prices inActive Marketsfor Identical |   |   | (Level 2)SignificantOtherObservable |   |   | (Level 3)SignificantUnobservableInputs |   |
|----------------|--------|-------------------|--------|--------|------------------------------------------------------|--------|--------|-------------------------------------|--------|--------|----------------------------------------|--------|
| Impaired Loans |   | $                 | 2,678  |   |                                                 | $      | -      |                                |   | $      | -                                      |   |   | $ | 2,678 |   |

|   | The following information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities.  Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful.  The following methods and assumptions were used to estimate the fair values of the Company’s finanical instruments at March 31, 2010 and December 31,2009: Cash and Cash Equivalents (Carried at cost) The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets’ fair values. Securities The fair value of securities available for sale (carried at fair value) and held to maturity (carried at amortized cost) are determined by obtaining market prices on nationally recognized securities exchanges |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (level 1), or matrix pricing (Level 2), which is a mathematical technique used widely in the industry to value debt securities without relying exclusively on quoted market prices for the specific securities but rather by relying on the securities’ relationship to other benchmark quoted prices.  For certain securities which are not traded in active markets or are subject to transfer restrictions, valuations are adjusted to reflect illiquiditiy and/or non-transferability, and such adjustments are generally based on available market evidence (Level 3).  In the absence of such evidence, management’s best estimate is used.  Management’s best estimate consists of both internal and external support on certain Level 3 investments.  Internal cash flow models using a present value formula that includes assumptions market participants would use along with indicative exit pricing obtained from broker/dealers (where available) were used to support fair values of certain Level 3 investments. Restricted Investment in Bank Stock (Carried at Cost) The carrying amount of restricted investment in bank stock approximates fair value, and considers the limited marketability of such securities. Loans Receivable (Carried at Cost) The fair value of loans are estimated using discounted cash flow analyses, using market rates at the balance sheet date that reflect the credit and the interest rate-risk inherent in the loans.  Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal.  Generally, for variable rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. Impaired loans Impaired loans are those that are accounted for under ASC Topic 310-4, Troubled Debt Restructuring, in which the Company has measured impairment generally based on the fair value of the loan’s collateral.  Fair value is generally deteremined based upon independent third-party appraisals of the properties, or discounted cash flows based upon the expected proceeds.  These assets are included as Level 3 fair values, based upon the lowest level of input that is significant to the fair value measurements. Accrued Interest Receivable and Payable (Carried at Cost The carrying amount of accrued interest receivable and accrued interest payable approximates fair value Deposits (Carried at Cost) The fair values disclosed for demand deposits (e.g., interest and noninterest checking, passbook savings and money market accounts) are, by definition, equal to the amount payable on demand at the reporting date (i.e., their carrying amounts).  Fair values for fixed rate certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered in the market on certificates to a schedule of aggregated expected monthly maturities of time deposits. The carrying amount approximates fair value. |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|   | Fair value estimates and assumptions are set forth below for the Company’s financial instruments at March 31, 2010 and December 31, 2009 (in thousands): |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          |   | March 31, 2010 |    |   | December 31, 2009 |   |
|-------------------------------|--------|----------------|---------|--------|-------------------|--------|
|                          |   | Carrying       |    |   | Estimated Fair    |   |   | Carrying |   |   | Estimated Fair |   |
|                          |   |           |    |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents     |   | $              | 19,153  |   |              | $      | 19,153 |   |   | $ | 18,098 |   |   | $ | 18,098 |   |
| Securities available for sale |   |           | 23,004  |   |              |   | 23,044 |   |   |   | 21,111 |   |   |   | 21,111 |   |
| Securities held to maturity   |   |           | -       |   |              |   | - |   |   |   | 4,296 |   |   |   | 4,297 |   |
| Restricted investment in bank |   |           | 419     |   |              |   | 419 |   |   |   | 419 |   |   |   | 419 |   |
| Net loans                     |   |           | 272,569 |   |              |   | 272,907 |   |   |   | 261,152 |   |   |   | 261,329 |   |
| Accrued interest receivable   |   |           | 1,521   |   |              |   | 1,521 |   |   |   | 1,173 |   |   |   | 1,173 |   |
| Financial liabilities:        |   |           |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                      |   |           | 278,512 |   |              |   | 273,578 |   |   |   | 267,143 |   |   |   | 268,101 |   |
| Short term borrowings         |   |           | – |   |              |   | – |   |   |   | – |   |   |   | – |   |
| Accrued interest payable      |   |           | 444     |   |              |   | 444 |   |   |   | 372 |   |   |   | 372 |   |

|                 | Limitation The preceding fair value estimates were made at March 31, 2010 and December 31, 2009 based on pertinent market data and relevant information on the financial instrument.  These estimates do not include any premium or discount that could result from an offer to sell at one time the Company’s entire holdings of a particular financial instrument or category thereof.  Since no market exists for a substantial portion of the Company’s financial instruments, fair value estimates were necessarily based on judgments regarding future expected loss experience, current economic conditions, risk assessment of various financial instruments, and other factors.  Given the innately subjective nature of these estimates, the uncertainties surrounding them and the matter of significant judgment that must be applied, these fair value estimates cannot be calculated with precision.  Modifications in such assumptions could meaningfully alter these estimates. Since these fair value approximations were made solely for on- and off-balance-sheet financial instruments at March 31, 2010 and December 31, 2009, no attempt was made to estimate the value of anticipated future business.  Furthermore, certain tax implications related to the realization of the unrealized gains and losses could have a substantial impact on these fair value estimates and have not been incorporated into the estimates. |
|----------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| Note 10.   | Recent Accounting Pronouncements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|                 |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                 | In January 2010, the FASB issued Accounting Standards Update (“ASU”) 2010-01, Equity (Topic 505) – Accounting for Distributions to Shareholders with Components of Stock and Cash.  The amendments in this update clarify that the stock portion of a distribution to shareholders that allows them to elect to receive cash or stock with a potential limitation on the total amount of cash that all shareholders can elect to receive in the aggregate is considered a share issuance that is reflected in earnings per share prospectively and is not a stock dividend.  This update codifies the consensus reached in EITF Issue No. 09-E, “Accounting for Stock Dividends, Including Distributions to Shareholders with Components of Stock and Cash.”  This update is effective for interim and annual periods ending on or after December 15, 2009, and should be applied on a retrospective basis.  The implementation of this standard did not have a material impact on our consolidated financial statements. In January 2010, the FASB issued ASU 2010-02, Consolidation (Topic 810) – Accounting and Reporting for Decreases in Ownership of a Subsidiary – A Scope Clarification.  This update clarifies that the scope of the decrease in ownership provisions of Subtopic 810-10 and related guidance applies to:                                                                                    |
|                 | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      | A subsidiary or group of assets that is a business or nonprofit activity; |

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|   | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | A subsidiary that is a business or nonprofit activity that is transferred to an equity method investee or joint venture; and                                                                                                    |
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|   | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     | An exchange of a group of assets that constitutes a business or nonprofit activity for a noncontrolling interest in an entity (including an equity method investee or joint venture).                                      |
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|   | This update also clarifies that the decrease in ownership guidance in Subtopic 810-10 does not apply to (a) sales of in substance real estate; and (b) conveyances of oil and gas mineral rights, even if these transfers involve businesses.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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|   | The amendments in this update expand the disclosure requirements about deconsolidation of a subsidiary or derecognition of a group of assets to include:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
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|   | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          | The valuation techniques used to measure the fair value of any retained investment;                                                                                                                                             |
|   | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | The nature of any continuing involvement with the subsidiary or entity acquiring the group of assets; and                                                                                                                  |
|   | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | Whether the transaction that resulted in the deconsolidation or derecognition was with a related party or whether the former subsidiary or entity acquiring the assets will become a related party after the transaction.  |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                            |
|   | This update is effective beginning in the period that an entity adopts FASB Statement No. 160, Noncontrolling Interests in Consolidated Financial Statements – an amendment of ARB 51 (now included in Subtopic 810-10).  If an entity has previously adopted Statement 160, the amendments are effective beginning in the first interim or annual reporting period ending on or after December 15, 2009.  The amendments in this update should be applied retrospectively to the first period that an entity adopts Statement 160.  The implementation of this standard did not have a material impact on our consolidated financial statements. The FASB has issued ASU 2010-06, Fair Value Measurements and Disclosures (Topic 820): Improving Disclosures about Fair Value Measurements.   This ASU requires some new disclosures and clarifies some existing disclosure requirements about fair value measurements as set forth in Codification Subtopic 820-10.  The FASB’s objective is to improve these disclosures and, thus, increase the transparency in financial reporting.  Specifically, ASU 2010-06 amends Codification Subtopic 820-10 to now require: |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | A reporting entity to disclose separately the amounts of significant transfers in and out of Level 1 and Level 2 fair value measurements and describe the reasons for the transfers; and                                   |
|   | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | In the reconciliation for fair value measurements using significant unobservable inputs, a reporting entity should present separately information about purchases, sales, issuances, and settlements.                           |
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|   | In addition, ASU 2010-06 clarifies the requirements of the following existing disclosures:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |                                                                                                                                                                                                                            |
|   | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | ●For purposes of reporting fair value measurement for each class of assets and liabilities, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities; and                |
|   | ●                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               | ●A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements.                                          |
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|   | ASU 2010-06 is effective for interim and annual reporting period beginning after December 15, 2009, except for the disclosures about purchases, sales, issuances, and settlements in the roll forward of activity in Level 3 fair value measurements.  Those disclosures are effective for fiscal years beginning after December 15, 2010, and for interim periods within those fiscal years.  Early adoption is permitted.   We do not expect the adoption of this standard to have a material impact on our financial position or results of operation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

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ITEM

|   | · | Current economic crisis affecting the financial industry; |
|--------|--------|-----------------------------------------------------------|

|   | · | Volatility in interest rates and shape of the yield curve; |
|--------|--------|------------------------------------------------------------|

|   | · | Increased credit risk and risks associated with the real estate market; |
|--------|--------|-------------------------------------------------------------------------|

|   | · | Operating, legal and regulatory risk; |
|--------|--------|---------------------------------------|

|   | · | Economic, political and competitive forces affecting the Company’s business; and |
|--------|--------|----------------------------------------------------------------------------------------|

|   | · | That management’s analysis of these risks and factors could be incorrect, and/or that the strategies developed to address them could be unsuccessful. |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

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|                 |   | March 31, 2010 |   |   | MinimumRegulatoryRequirements |   |
|----------------------|--------|----------------|--------|--------|-------------------------------|--------|
| Risk-Based Capital:  |   |           |   |   |                          |   |
| Tier 1 Capital Ratio |   |           | 18.62  | %      |                          |   | 4.00 | % |
| Total Capital Ratio  |   |           | 19.76  | %      |                          |   | 8.00 | % |
| Leverage Ratio       |   |           | 15.44  | %      |                          |   | 4.00 | % |

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SIGNATURES

|                           |   | Bancorp of New Jersey, Inc. |
|--------------------------------|--------|-----------------------------|
|                           |   |                        |
| Dated:  May 14, 2010 |   | By:               | /s/ Albert F. Buzzetti |
|                           |   |                        | Albert F. Buzzetti |
|                           |   |                        | Chief Executive Officer |
|                           |   |                        |   |
|                           |   |                        |   |
|                           |   | By:                         | /s/ Michael Lesler |
|                           |   |                        | Michael Lesler |
|                           |   |                        | President and Chief Operating Officer |

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| ExhibitNumber |   | Description                                                     |
|---------------|--------|-----------------------------------------------------------------|
|          |   |                                                            |
| 31.1          |   | Rule 13a-14(a) Certification of the Principal Executive Officer |
|          |   |                                                            |
| 31.2          |   | Rule 13a-14(a) Certification of the Principal Financial Officer |
|          |   |                                                            |
| 32            |   | Section 1350 Certifications                                     |