----

----

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

| £ | 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:                                                                       |                                                                                                      |         |
|                              |                                                                                        |                                                                                                           |
|                              |                                                                                        | Unaudited Consolidated Statements of Financial Condition – June 30, 2010 and December 31, 2009 |         | 3      |
|                              |                                                                                        |                                                                                                           |
|                              |                                                                                        | Unaudited Consolidated Statements of Operations – Three Months Ended June 30, 2010 and 2009              |         | 4      |
|                              |                                                                                        |                                                                                                           |         |   |
|                              |                                                                                        | Unaudited Consolidated Statements of Operations – Six Months Ended June 30, 2010 and 2009                |         | 5      |
|                              |                                                                                        |                                                                                                           |
|                              |                                                                                        | Unaudited Consolidated Statements of Cash Flows – Six Months Ended June 30, 2010 and 2009                |         | 6      |
|                              |                                                                                        |                                                                                                           |
|                              |                                                                                        | Notes to Unaudited Consolidated Financial Statements                                                           |         | 7      |
|                              |                                                                                        |                                                                                                           |
| Item 2.                           | Management’s Discussion and Analysis of Financial Condition and Results of Operations |                                                                                                           | 23           |
|                              |                                                                                        |                                                                                                           |
| Item 3.                           | Quantitative and Qualitative Disclosures about Market Risk                                  |                                                                                                           | 33           |
|                              |                                                                                        |                                                                                                           |
| Item 4.                           | Controls and Procedures                                                                     |                                                                                                           | 33           |
|                              |                                                                                        |
| Part II Other Information    |
|                              |                                                                                        |                                                                                                           |
| Item 1.                           | Legal Proceedings                                                                           |                                                                                                           | 34           |
|                              |                                                                                        |                                                                                                           |
| Item 1A.                          | Risk Factors                                                                                | 34                                                                                                             |
|                              |                                                                                        |                                                                                                           |
| Item 2.                           | Unregistered Sales of Equity Securities and Use of Proceeds                                 |                                                                                                           | 34           |
|                              |                                                                                        |                                                                                                           |
| Item 3.                           | Defaults Upon Senior Securities                                                             |                                                                                                           | 34           |
|                              |                                                                                        |                                                                                                           |
| Item 4.                           | (Removed and Reserved)                                                                      |                                                                                                           | 34           |
|                              |                                                                                        |                                                                                                           |
| Item 5.                           | Other Information                                                                           |                                                                                                           | 34           |
|                              |                                                                                        |                                                                                                           |
| Item 6.                           | Exhibits                                                                                    |                                                                                                           | 34           |
|                              |                                                                                        |
| Signatures                        |                                                                                        | 35                                                                                                             |

----

| ITEM 1. | Financial Statements |
|--------------|----------------------|

| ASSETS                                                                                                                                    |   |  June 30, 2010 |    |   | December 31, 2009 |   |
|-------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|---------|--------|------------------------|--------|
|                                                                                                                                      |   |                     |    |
| Cash and due from banks                                                                                                                   |   | $                        | 945     |   |                   | $      | 576 |   |
| Interest-bearing deposits                                                                                                                 |   |                     | 27,176  |   |                   |   | 17,055 |   |
| Federal funds sold                                                                                                                        |   |                     | 466     |   |                   |   | 467 |   |
| Total cash and cash equivalents                                                                                                           |   |                     | 28,587  |   |                   |   | 18,098 |   |
|                                                                                                                                      |   |                     |    |   |                   |   |   |   |
| Restricted investment in bank stock, at cost                                                                                              |   |                     | 491     |   |                   |   | 419 |   |
| Securities available for sale, at fair value (amortized cost of $32,074 and $21,005, respectively)                                        |   |                     | 32,449  |   |                   |   | 21,111 |   |
| Securities held to maturity (fair value of $2,387 and $4,297 respectively)                                                                |   |                     | 2,400   |   |                   |   | 4,296 |   |
|                                                                                                                                      |   |                     |    |   |                   |   |   |   |
| Loans receivable                                                                                                                          |   |                     | 278,155 |   |                   |   | 263,931 |   |
| Deferred loan fees and unamortized costs, net                                                                                             |   |                     | 27      |   |                   |   | 13 |   |
| Less: allowance for loan losses                                                                                                           |   |                     | (3,446  | )      |                   |   | (2,792 | ) |
| Net loans                                                                                                                                 |   |                     | 274,736 |   |                   |   | 261,152 |   |
| Premises and equipment, net                                                                                                               |   |                     | 10,079  |   |                   |   | 10,214 |   |
| Accrued interest receivable                                                                                                               |   |                     | 1,455   |   |                   |   | 1,173 |   |
| Other assets                                                                                                                              |   |                     | 3,248   |   |                   |   | 3,145 |   |
| TOTAL ASSETS                                                                                                                              |   | $                        | 353,445 |   |                   | $      | 319,608 |   |
|                                                                                                                                      |   |
|                                                                                                                                      |   |                     |    |   |                   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                                |   |                     |    |   |                   |   |   |   |
| LIABILITIES:                                                                                                                              |   |                     |    |   |                   |   |   |   |
| Deposits:                                                                                                                                 |   |                     |    |   |                   |   |   |   |
| Non-interest bearing                                                                                                                      |   | $                        | 34,203  |   |                   | $      | 36,687 |   |
| Savings and interest-bearing transaction accounts                                                                                         |   |                     | 53,538  |   |                   |   | 50,372 |   |
| Time deposits under $100                                                                                                                  |   |                     | 55,628  |   |                   |   | 34,789 |   |
| Time deposits $100 and over                                                                                                               |   |                     | 157,796 |   |                   |   | 145,295 |   |
| Total deposits                                                                                                                            |   |                     | 301,165 |   |                   |   | 267,143 |   |
|                                                                                                                                      |   |                     |    |   |                   |   |   |   |
| Accrued interest payable and other liabilities                                                                                            |   |                     | 1,395   |   |                   |   | 2,930 |   |
| TOTAL LIABILITIES                                                                                                                         |   |                     | 302,560 |   |                   |   | 270,073 |   |
| Commitments and contingencies                                                                                                             |   |                     |    |   |                   |   |   |   |
| Stockholders’ equity:                                                                                                               |   |                     |    |   |                   |   |   |   |
| Common stock, no par value, authorized 20,000,000 shares; issued and outstanding 5,206,932 shares at June 30, 2010; and December 31, 2009 |   |                     | 49,244  |   |                   |   | 49,096 |   |
| Retained earnings                                                                                                                         |   |                     | 1,411   |   |                   |   | 373 |   |
| Accumulated other comprehensive income                                                                                                    |   |                     | 230     |   |                   |   | 66 |   |
| TOTAL STOCKHOLDERS’ EQUITY                                                                                                          |   |                     | 50,885  |   |                   |   | 49,535 |   |
| TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY                                                                                          |   | $                        | 353,445 |   |                   | $      | 319,608 |   |
|                                                                                                                                      |   |

----

|                                                                             |   | For the Three Months Ended June 30,   |   |
|----------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                                                             |   | 2010                                                           |   |   | 2009 |   |
|                                                                             |   | (In thousands, except per share data) |   |
| INTEREST INCOME                                                                  |   |                                                           |   |   |   |   |
| Loans, including fees                                                            |   | $                                                              | 4,011  |   |   | $ | 3,587 |   |
| Securities                                                                       |   |                                                           | 181    |   |   |   | 206 |   |
| Federal funds sold                                                               |   |                                                           | 14     |   |   |   | 16 |   |
| TOTAL INTEREST INCOME                                                            |   |                                                           | 4,206  |   |   |   | 3,809 |   |
| INTEREST EXPENSE                                                                 |   |                                                           |   |   |   |   |   |   |
| Savings and money markets                                                        |   |                                                           | 42     |   |   |   | 43 |   |
| Time deposits                                                                    |   |                                                           | 1,045  |   |   |   | 1,445 |   |
| TOTAL INTEREST EXPENSE                                                           |   |                                                           | 1,087  |   |   |   | 1,488 |   |
| NET INTEREST INCOME                                                              |   |                                                           | 3,119  |   |   |   | 2,321 |   |
| Provision for loan losses                                                        |   |                                                           | 384    |   |   |   | 144 |   |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES                              |   |                                                           | 2,735  |   |   |   | 2,177 |   |
| NON-INTEREST INCOME  -  principally fees and service charges |   |                                                           | 60     |   |   |   | 48 |   |
| NON-INTEREST EXPENSE                                                             |   |                                                           |   |   |   |   |   |   |
| Salaries and employee benefits                                                   |   |                                                           | 963    |   |   |   | 911 |   |
| Occupancy and equipment expense                                                  |   |                                                           | 368    |   |   |   | 342 |   |
| FDIC related expenses                                                            |   |                                                           | 124    |   |   |   | 262 |   |
| Data processing                                                                  |   |                                                           | 104    |   |   |   | 92 |   |
| Professional fees                                                                |   |                                                           | 118    |   |   |   | 111 |   |
| Other expenses                                                                   |   |                                                           | 223    |   |   |   | 180 |   |
| TOTAL NON-INTEREST EXPENSE                                                       |   |                                                           | 1,900  |   |   |   | 1,898 |   |
| Income before provision for income taxes                                         |   |                                                           | 895    |   |   |   | 327 |   |
| Income tax expense                                                               |   |                                                           | 371    |   |   |   | 136 |   |
|   NET INCOME                                                           |   | $                                                              | 524    |   |   | $ | 191 |   |
|                                                                             |   |
|                                                                             |   |                                                           |   |   |   |   |   |   |
| PER SHARE OF COMMON STOCK                                                        |   |                                                           |   |   |   |   |   |   |
| Basic and diluted earnings                                                       |   | $                                                              | 0.10   |   |   | $ | 0.04 |   |
|                                                                             |   |                                                           |   |   |   |   |   |   |

----

|                                                                             |   | For the Six Months Ended June 30           |   |
|----------------------------------------------------------------------------------|--------|----------------------------------------------------------------|--------|
|                                                                             |   | 2010                                                           |   |   | 2009 |   |
|                                                                             |   | (In thousands, except per share data) |   |
| INTEREST INCOME                                                                  |   |                                                           |   |   |   |   |
| Loans, including fees                                                            |   | $                                                              | 7,903  |   |   | $ | 6,963 |   |
| Securities                                                                       |   |                                                           | 324    |   |   |   | 385 |   |
| Federal funds sold                                                               |   |                                                           | 25     |   |   |   | 58 |   |
| TOTAL INTEREST INCOME                                                            |   |                                                           | 8,252  |   |   |   | 7,406 |   |
| INTEREST EXPENSE                                                                 |   |                                                           |   |   |   |   |   |   |
| Savings and money markets                                                        |   |                                                           | 83     |   |   |   | 167 |   |
| Time deposits                                                                    |   |                                                           | 2,049  |   |   |   | 3,050 |   |
| TOTAL INTEREST EXPENSE                                                           |   |                                                           | 2,132  |   |   |   | 3,217 |   |
| NET INTEREST INCOME                                                              |   |                                                           | 6,120  |   |   |   | 4,189 |   |
| Provision for loan losses                                                        |   |                                                           | 654    |   |   |   | 205 |   |
| NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES                              |   |                                                           | 5,466  |   |   |   | 3,984 |   |
| NON-INTEREST INCOME  -  principally fees and service charges |   |                                                           | 98     |   |   |   | 86 |   |
| NON-INTEREST EXPENSE                                                             |   |                                                           |   |   |   |   |   |   |
| Salaries and employee benefits                                                   |   |                                                           | 1,950  |   |   |   | 1,827 |   |
| Occupancy and equipment expense                                                  |   |                                                           | 750    |   |   |   | 684 |   |
| FDIC related expenses                                                            |   |                                                           | 231    |   |   |   | 303 |   |
| Data processing                                                                  |   |                                                           | 196    |   |   |   | 171 |   |
| Professional fees                                                                |   |                                                           | 246    |   |   |   | 171 |   |
| Other expenses                                                                   |   |                                                           | 431    |   |   |   | 377 |   |
| TOTAL NON-INTEREST EXPENSE                                                       |   |                                                           | 3,804  |   |   |   | 3,533 |   |
| Income before provision for income taxes                                         |   |                                                           | 1,760  |   |   |   | 537 |   |
| Income tax expense                                                               |   |                                                           | 722    |   |   |   | 230 |   |
| NET INCOME                                                                       |   | $                                                              | 1,038  |   |   | $ | 307 |   |
|                                                                             |   |
|                                                                             |   |                                                           |   |   |   |   |   |   |
| PER SHARE OF COMMON STOCK                                                        |   |                                                           |   |   |   |   |   |   |
| Basic and diluted earnings                                                       |   | $                                                              | 0.20   |   |   | $ | 0.06 |   |
|                                                                             |   |                                                           |   |   |   |   |   |   |

----

|                                                                                        |   | For the Six Months Ended June 30, |    |
|---------------------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|
|                                                                                        |   | 2010                                             |    |   | 2009 |   |
| CASH FLOWS FROM OPERATING ACTIVITIES                                                        |   | (in thousands)                                   |    |
| Net income                                                                                  |   | $                                                | 1,038   |   |   | $ | 307 |   |
| Adjustments to reconcile net income to net cash Provided by (used in) operating activities: |   |                                             |    |   |   |   |   |   |
| Depreciation and amortization                                                               |   |                                             | 212     |   |   |   | 203 |   |
| Provision for loan losses                                                                   |   |                                             | 654     |   |   |   | 205 |   |
| Recognition of stock option expense                                                         |   |                                             | 148     |   |   |   | 208 |   |
| Changes in operating assets and liabilities:                                                |   |                                             |    |   |   |   |   |   |
| Increase in accrued interest receivable                                                     |   |                                             | (282    | )  |   |   | (513 | )  |
| (Increase) decrease in other assets                                                         |   |                                             | (208    | ) |   |   | 118 |   |
| Decrease in other liabilities                                                               |   |                                             | (1,535  | ) |   |   | (997 | ) |
| NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES                                         |   |                                             | 27      |   |   |   | (469 | ) |
|                                                                                        |   |                                             |    |   |   |   |   |   |
| CASH FLOWS FROM INVESTING ACTIVITIES                                                        |   |                                             |    |   |   |   |   |   |
| Purchases of securities available for sale, net                                             |   |                                             | (26,073 | ) |   |   | (23,883 | ) |
| Purchases of investment in bank stock                                                       |   |                                             | (72     | ) |   |   | (73 | ) |
| Proceeds from sales or calls of securities available for sale                               |   |                                             | 15,004  |   |   |   | 17,391 |   |
| Purchases of securities held to maturity                                                    |   |                                             | (2,400  | ) |   |   | (4,296 | ) |
| Maturities of securities held to maturity                                                   |   |                                             | 4,296   |   |   |   | --- |   |
| Net increase in loans                                                                       |   |                                             | (14,238 | ) |   |   | (19,860 | ) |
| Purchases of premises and equipment                                                         |   |                                             | (77     | )  |   |   | (256 | )  |
| NET CASH USED IN INVESTING ACTIVITIES                                                       |   |                                             | (23,560 | ) |   |   | (30,977 | ) |
|                                                                                        |   |                                             |    |   |   |   |   |   |
| CASH FLOWS FROM FINANCING ACTIVITIES                                                        |   |                                             |    |   |   |   |   |   |
| Net increase(decrease) in deposits                                                          |   |                                             | 34,022  |   |   |   | (3,363 | ) |
| Exercise of stock options                                                                   |   |                                             | --      |   |   |   | 23 |   |
| Exercise of warrants                                                                        |   |                                             | --      |   |   |   | 21 |   |
| NET CASH PROVIDED BYFINANCING ACTIVITIES                                                    |   |                                             | 34,022  |   |   |   | 3,407 |   |
|                                                                                        |   |                                             |    |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                        |   |                                             | 10,489  |   |   |   | (28,039 | ) |
| Cash and cash equivalents, beginning of period                                              |   |                                             | 18,098  |   |   |   | 40,480 |   |
| CASH AND CASH EQUIVALENTS, END OF PERIOD                                                    |   | $                                                | 28,587  |   |   | $ | 12,441 |   |
|                                                                                        |   |                                             |    |   |   |   |   |   |
| Cash paid during the period for:                                                            |   |                                             |    |   |   |   |   |   |
| Interest                                                                                    |   | $                                                | 2,007   |   |   | $ | 2,976 |   |
| Income taxes                                                                                |   | $                                                | 1,554   |   |   | $ | 501 |   |
|                                                                                        |   |

----

| Note 1. | Significant Accounting Policies |
|---------|---------------------------------|

----

| Note 2. | Stockholders’ Equity and Related Transactions |
|---------|-----------------------------------------------------|

| Note 3. | Benefit Plans and Stock-Based Compensation |
|---------|--------------------------------------------|

----

----

| Note 4. | Earnings Per Share. |
|---------|---------------------|

|                                                                                 |   | For the Three Months EndedJune 30, |   |   |
|--------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|
| (In thousands except per share data)                                                 |   | 2010                               |   |   | 2009 |   |
|                                                                                 |   |                               |   |   |   |   |
| Net income applicable to common stock                                                |   | $                                  | 524    |   |   | $ | 191 |   |
| Weighted average number of common shares outstanding – basic                   |   |                               | 5,207  |   |   |   | 5,069 |   |
|                                                                                 |   |                               |   |   |   |   |   |   |
| Basic earnings per share                                                             |   | $                                  | 0.10   |   |   | $ | 0.04 |   |
|                                                                                 |   |                               |   |   |   |   |   |   |
| Net income applicable to common stock                                                |   | $                                  | 524    |   |   | $ | 191 |   |
| Weighted average number of common shares outstanding                                 |   |                               | 5,207  |   |   |   | 5,069 |   |
| Effect of dilutive options                                                           |   |                               | 21     |   |   |   | - |   |
| Weighted average number of common shares and common share equivalents –diluted |   |                               | 5,228  |   |   |   | 5,069 |   |
|                                                                                 |   |                               |   |   |   |   |   |   |
| Diluted earnings per share                                                           |   | $                                  | 0.10   |   |   | $ | 0.04 |   |

----

|                                                                                 |   | For the Six Months EndedJune 30, |   |
|--------------------------------------------------------------------------------------|--------|----------------------------------|--------|
| (In thousands except per share data)                                                 |   | 2010                             |   |   | 2009 |   |
|                                                                                 |   |                             |   |   |   |   |   |   |
| Net income applicable to common stock                                                |   | $                                | 1,038  |   |   | $ | 307 |   |
| Weighted average number of common shares outstanding – basic                   |   |                             | 5,207  |   |   |   | 5,068 |   |
|                                                                                 |   |                             |   |   |   |   |   |   |
| Basic earnings per share                                                             |   | $                                | 0.20   |   |   | $ | 0.06 |   |
|                                                                                 |   |                             |   |   |   |   |   |   |
|                                                                                 |   |                             |   |   |   |   |   |   |
| Net income applicable to common stock                                                |   | $                                | 1,038  |   |   | $ | 307 |   |
| Weighted average number of common shares outstanding                                 |   |                             | 5,207  |   |   |   | 5,068 |   |
| Effect of dilutive options                                                           |   |                             | 17     |   |   |   | - |   |
| Weighted average number of common shares and common share equivalents –diluted |   |                             | 5,224  |   |   |   | 5,068 |   |
|                                                                                 |   |                             |   |   |   |   |   |   |
| Diluted earnings per share                                                           |   | $                                | 0.20   |   |   | $ | 0.06 |   |

----

| Note 5. | Comprehensive Income |
|---------|----------------------|

|                                                                                                                          |   | Three months ended June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------|--------|
| Comprehensive Income                                                                                                          |   | 2010                        |   |   | 2009 |
|                                                                                                                          |   |                        |   |   |   |
| Net income                                                                                                                    |   | $                           | 524    |   |   | $ | 191 |   |
|                                                                                                                          |   |                        |   |   |   |   |   |   |
| Unrealized holding gain (loss) on securities available for sale, net of taxes of $132 and $94 for 2010 and 2009, respectively |   |                        | 207    |   |   |   | (131 | )   |
|                                                                                                                          |   |                        |   |   |   |   |   |   |
| Total comprehensive income                                                                                                    |   | $                           | 731    |   |   | $ | 60 |   |
|                                                                                                                          |   |                        |   |   |   |   |   |   |

|                                                                                                                          |   | Six months ended June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                                                                          |   | 2010                      |   |   | 2009 |
| Comprehensive Income                                                                                                          |   |                      |   |   |   |
|                                                                                                                          |   |                      |   |   |   |
| Net income                                                                                                                    |   | $                         | 1,038  |   |   | $ | 307 |   |
|                                                                                                                          |   |                      |   |   |   |   |   |   |
| Unrealized holding gain (loss) on securities available for sale, net of taxes of $105 and $79 for 2010 and 2009, respectively |   |                      | 164    |   |   |   | (119 | )   |
|                                                                                                                          |   |                      |   |   |   |   |   |   |
| Total comprehensive income                                                                                                    |   | $                         | 1,202  |   |   | $ | 191 |   |

----

| Note 6. | Securities Available for Sale and Investment Securities |
|---------|---------------------------------------------------------|

|                                        |   |      |   |   | Gross      |   |   | Gross      |   |   |   |   |
|---------------------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                        |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
| June 30, 2010                               |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
| U.S. Treasury obligations                   |   | $         | 11,073 |   |       | $      | 72     |       |   | $      | -      |   |   | $ | 11,145 |   |
| Government Sponsored Enterprise obligations |   |      | 21,001 |   |       |   | 303    |       |   |   | -      |   |   |   | 21,304 |   |
| Total securities available for sale         |   | $         | 32,074 |   |       | $      | 375    |       |   | $      | -      |   |   | $ | 32,449 |   |

|                                        |   |      |   |   | Gross      |   |   | Gross      |   |   |   |   |
|---------------------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                        |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
| December 31, 2009                           |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
| 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 |   |

|                                        |   | Less than 12 Months |   |   | More than 12 Months |   |   | Total  |   |
|---------------------------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|--------|--------|
|                                        |   | Fair                |   |   | Unrealized          |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
| December 31, 2009                           |   | Value               |   |   | Losses              |   |   | Value  |   |   | Losses |   |   | Value |   |   | Losses |   |
| U.S. Treasury obligations                   |   | $                   | 2,000  |   |                | $      | 5      |   |   | $ | - |   |   | $ | - |   |   | $ | 2,000 |   |   | $ | 5 |   |
| Government Sponsored Enterprise obligations |   |                | 5,984  |   |                |   | 16     |   |   |   | - |   |   |   | - |   |   |   | 5,984 |   |   |   | 16 |   |
| Total securities available for sale         |   | $                   | 7,984  |   |                | $      | 21     |   |   | $ | - |   |   | $ | - |   |   | $ | 7,984 |   |   | $ | 21 |   |

|                    |   | Amortized |   |   | Fair   |   |
|-------------------------|--------|-----------|--------|--------|--------|--------|
|                    |   | Cost      |   |   | Value  |   |
| One year or less        |   | $         | -      |   |   | $      | - |   |
| After one to five years |   |      | 24,074 |   |   |   | 24,341 |   |
| After five to ten years |   |      | 8,000  |   |   |   | 8,108 |   |
| After ten years         |   |      | -      |   |   |   | - |   |
|  Total             |   | $         | 32,074 |   |   | $      | 32,449 |   |

----

|                                             |   |      |   |   | Gross      |   |   | Gross      |   |   |   |   |
|--------------------------------------------------|--------|-----------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                             |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
| June 30, 2010                                    |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
| Obligations of states and political subdivisions |   | $         | 2.400  |   |       | $      | -      |       |   | $      | 13     |   |   | $ | 2,387 |   |
|                                             |   |      |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                                             |   |      |   |   |       | Gross  |   |       | Gross  |   |   |   |   |   |
|                                             |   | Amortized |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
| December 31, 2009                                |   | Cost      |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
| Obligations of states and political subdivisions |   | $         | 4,296  |   |       | $      | 1      |       |   | $      | -      |   |   | $ | 4,297 |   |

----

| Note 7. | Loans. |
|---------|--------|

|         |   | June 30,2010 |    |   | December 31,2009 |   |
|--------------|--------|--------------|---------|--------|------------------|--------|
|         |   |         |    |   |             |   |
| Real estate  |   | $            | 182,092 |   |             | $      | 177,031 |   |
| Commercial   |   |         | 37,876  |   |             |   | 36,036 |   |
| Credit lines |   |         | 49,429  |   |             |   | 47,536 |   |
| Consumer     |   |         | 8,758   |   |             |   | 3,328 |   |
|         |   |         |    |   |             |   |   |   |
|         |   | $            | 278,155 |   |             | $      | 263,931 |   |

----

|                           |   | Three months ended |   |
|--------------------------------|--------|--------------------|--------|
|                           |   | June 30, 2010      |   |   | June 30, 2009 |   |
|                           |   |               |   |   |   |   |
| Balance at beginning of period |   | $                  | 3,062  |   |   | $ | 2,432 |   |
| Provision charged to expense   |   |               | 384    |   |   |   | 144 |   |
| Balance at end of period       |   | $                  | 3,446  |   |   | $ | 2,576 |   |
|                           |   |               |   |   |   |   |   |   |
|                           |   |               |   |   |   |   |   |   |
|                           |   | Six months ended   |   |
|                           |   | June 30, 2010      |   |   | June 30, 2009 |   |
|                           |   |               |   |   |   |   |   |   |
| Balance at beginning of period |   | $                  | 2,792  |   |   | $ | 2,371 |   |
| Provision charged to expense   |   |               | 654    |   |   |   | 205 |   |
| Balance at end of period       |   | $                  | 3,446  |   |   | $ | 2,576 |   |

|                           |   | Six months ended |   |
|--------------------------------|--------|------------------|--------|
|                           |   | June 30, 2010    |   |   | June 30, 2009 |   |
|                           |   |             |   |   |   |   |
| Balance at beginning of period |   | $                | 2,792  |   |   | $ | 2,371 |   |
| Provision charged to expense   |   |             | 654    |   |   |   | 61 |   |
| Balance at end of period       |   | $                | 3,446  |   |   | $ | 2,432 |   |

|                                          |   | June 30, 2010 |   |   | December 31, 2009 |   |
|-----------------------------------------------|--------|---------------|--------|--------|-------------------|--------|
| Impaired loans without valuation allowance    |   | $             | 1,320  |   |              | $      | 1,181 |   |
| Impaired loans with a valuation allowance     |   |          | 3,310  |   |              |   | 2,777 |   |
| Valuation allowance related to impaired loans |   |          | (373   | )      |              |   | (99 | ) |
|                                          |   | $             | 4,257  |   |              | $      | 3,859 |   |

----

| Note 8. | Guarantees |
|---------|------------|

| Note 9. | Fair Value Measurements |
|---------|-------------------------|

|   | · | 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). |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|  Description             |   | June 30, 2010 |   |   | (Level 1) Quoted Prices in Active Markets for Identical Assets |   |   | (Level 2) Significant Other Observable Inputs |   |   | (Level 3) Significant Unobservable Inputs |   |
|-------------------------------|--------|---------------|--------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|
| Securities available for sale |   | $             | 32,449 |   |                                                           | $      | 11,145 |                                          |   | $      | 21,304                                    |   |   | $ | – |   |

|  Description             |   | December 31, 2009 |   |   | (Level 1) Quoted Prices in Active Markets for Identical Assets |   |   | (Level 2) Significant Other Observable Inputs |   |   | (Level 3) Significant Unobservable Inputs |   |
|-------------------------------|--------|-------------------|--------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|
| Securities available for sale |   | $                 | 21,111 |   |                                                           | $      | 2,000  |                                          |   | $      | 19,111                                    |   |   | $ | – |   |

|  Description |   | June 30, 2010 |   |   | (Level 1) Quoted Prices in Active Markets for Identical Assets |   |    | (Level 2) Significant Other Observable Inputs |   |   | (Level 3) Significant Unobservable Inputs |   |
|-------------------|--------|---------------|--------|--------|----------------------------------------------------------------|--------|---------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|
| Impaired loans    |   | $             | 2,937  |   |                                                           | $      | – |                                          |   | $      | –                                   |   |   | $ | 2,937 |   |

|  Description |   | December 31, 2009 |   |   | (Level 1) Quoted Prices in Active Markets for Identical Assets |   |    | (Level 2) Significant Other Observable Inputs |   |   | (Level 3) Significant Unobservable Inputs |   |
|-------------------|--------|-------------------|--------|--------|----------------------------------------------------------------|--------|---------|-----------------------------------------------|--------|--------|-------------------------------------------|--------|
| Impaired loans    |   | $                 | 2,678  |   |                                                           | $      | – |                                          |   | $      | –                                   |   |   | $ | 2,678 |   |

----

----

----

|                                |   | June 30, 2010   |    |   | December 31, 2009    |   |
|-------------------------------------|--------|-----------------|---------|--------|----------------------|--------|
|                                |   | Carrying amount |    |   | Estimated Fair Value |   |   | Carrying amount |   |   | Estimated Fair Value |   |
|                                |   |            |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Financial assets:                   |   |            |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents           |   | $               | 28,587  |   |                 | $      | 28,587 |   |   | $ | 18,098 |   |   | $ | 18,098 |   |
| Securities available for sale       |   |            | 32,074  |   |                 |   | 32,449 |   |   |   | 21,005 |   |   |   | 21,111 |   |
| Securities held to maturity         |   |            | 2,400   |   |                 |   | 2,387 |   |   |   | 4,296 |   |   |   | 4,297 |   |
| Restricted investment in bank stock |   |            | 491     |   |                 |   | 491 |   |   |   | 419 |   |   |   | 419 |   |
| Net loans                           |   |            | 274,736 |   |                 |   | 275,910 |   |   |   | 261,152 |   |   |   | 261,329 |   |
| Accrued interest receivable         |   |            | 1,455   |   |                 |   | 1,455 |   |   |   | 1,173 |   |   |   | 1,173 |   |
| Financial liabilities:              |   |            |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                            |   |            | 301,165 |   |                 |   | 297,363 |   |   |   | 267,143 |   |   |   | 268,101 |   |
| Short term borrowings               |   |            | – |   |                 |   | – |   |   |   | – |   |   |   | – |   |
| Accrued interest payable            |   |            | 497     |   |                 |   | 497 |   |   |   | 372 |   |   |   | 372 |   |

----

| Note 10. | Recent Accounting Pronouncements |
|----------|----------------------------------|

----

| ITEM 2 | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|-------------|---------------------------------------------------------------------------------------------|

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

|   | · | Current interest rate environment affecting loan, deposit, and investment pricing; |
|--------|--------|------------------------------------------------------------------------------------|

|   | · | 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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|                 |   | June 30,2010 |   |   | MinimumRegulatoryRequirements |   |
|----------------------|--------|--------------|--------|--------|-------------------------------|--------|
| Risk-Based Capital : |   |         |   |   |                          |   |
| Tier 1 Capital Ratio |   |         | 18.53  | %      |                          |   | 4.0 | % |
| Total Capital Ratio  |   |         | 19.78  | %      |                          |   | 8.0 | % |
| Leverage Ratio       |   |         | 14.86  | %      |                          |   | 4.0 | % |

----

| ITEM 3. | Quantitative and Qualitative Disclosures about Market/Interest Risk |
|--------------|---------------------------------------------------------------------|

| ITEM 4. | Controls and Procedures |
|--------------|-------------------------|

----

| ITEM 1. | Legal Proceedings |
|--------------|-------------------|

| ITEM 1A. | Risk Factors |
|---------------|--------------|

| ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds. |
|---------|--------------------------------------------------------------|

| ITEM 3. | Defaults Upon Senior Securities |
|---------|---------------------------------|

| ITEM 4. | (Removed and Reserved) |
|---------|------------------------|

| ITEM 5. | Other Information |
|---------|-------------------|

| ITEM 6. | Exhibits |
|---------|----------|

----

|   |   | Bancorp of New Jersey, Inc. |                                 |
|--------|--------|-----------------------------|--------------------------------------|
|   |   |                        |                                 |
|   |   | By:                         | /s/ Albert F. Buzzetti               |   |
|   |   |                        | Albert F. Buzzetti                   |   |
|   |   |                        | Chairman and Chief Executive Officer |   |
|   |   |                        | (Principal Executive Officer)        |   |

|   |   | By:    | /s/ Michael Lesler                    |   |
|--------|--------|--------|---------------------------------------|--------|
|   |   |   | Michael Lesler                        |   |
|   |   |   | President and Chief Operating Officer |   |
|   |   |   | (Principal Financial Officer)         |   |

----

| 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                                     |