UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549

                                    FORM 10-Q

[X]  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
     ACT OF 1934
     For the quarterly period ended September 30, 2000

                                       OR

[_]  TRANSITION  REPORT  PURSUANT  TO SECTION  13 OR 15(d) OF THE  SECURITIES
     EXCHANGE ACT OF 1934
     For the transition period from ___________ to ______________

                         Commission file number 0-24040

                        PENNFED FINANCIAL SERVICES, INC.
                   -------------------------------------------
             (Exact name of registrant as specified in its charter)

        Delaware                                           22-3297339
-------------------------------             ------------------------------------
(State or other jurisdiction of             (I.R.S. Employer Identification No.)
incorporation or organization)

622 Eagle Rock Avenue, West Orange, NJ                     07052-2989
-------------------------------------------------------------------------------
(Address of principal executive offices)                   (Zip Code)


Registrant's telephone number, including area code:     (973) 669-7366
                                                    ----------------------

--------------------------------------------------------------------------------
(Former  name,  former  address and former  fiscal year,  if changed  since last
report)


     Indicate  by check mark  whether the  registrant  (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant  was required to file such  reports) and (2) has been subject to such
requirements for the past 90 days.      YES  X  NO __


     As of November 10, 2000, there were issued and outstanding 8,027,813 shares
of the Registrant's Common Stock.


<PAGE>


PART I - Financial Information
Item 1.  Financial Statements

PennFed Financial Services, Inc. and Subsidiaries
Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>
                                                                          September 30,        June 30,
                                                                              2000                2000
                                                                         --------------------------------
                                                                              (Dollars in thousands)
ASSETS
<S>                                                                      <C>                <C>
Cash and cash equivalents..............................................  $     14,960       $     13,866
Investment securities held to maturity, at amortized cost,
    market value of $282,014 and $278,643 at September 30,
    2000 and June 30, 2000...... ......................................       303,008            303,026
Mortgage-backed securities held to maturity, at amortized
    cost, market value of $77,836 and $86,861 at September
    30, 2000 and June 30, 2000..... ...................................        77,714             87,561
Loans held for sale....................................................        18,350                ---
Loans receivable, net of allowance for loan losses of $4,076
    and $3,983 at September 30, 2000 and June 30, 2000.................     1,230,790          1,259,248
Premises and equipment, net............................................        20,279             20,076
Real estate owned, net.................................................           633                334
Federal Home Loan Bank of New York stock, at cost......................        22,488             22,295
Accrued interest receivable, net.......................................        12,143             10,227
Goodwill and other intangible assets...................................         8,486              8,996
Other assets...........................................................         1,616              3,590
                                                                         ------------       ------------
                                                                           $1,710,467         $1,729,219
                                                                         ============       ============

LIABILITIES & STOCKHOLDERS' EQUITY
Liabilities:
    Deposits...........................................................    $1,117,807         $1,080,350
    Federal Home Loan Bank of New York advances........................       374,465            364,465
    Other borrowings...................................................        47,465            112,175
    Mortgage escrow funds..............................................        11,834             11,888
    Due to banks.......................................................         7,227              7,908
    Accounts payable and other liabilities.............................         5,453              5,647
                                                                         ------------       ------------
    Total liabilities..................................................     1,564,251          1,582,433
                                                                         ------------       ------------

    Guaranteed Preferred Beneficial Interests in the Company's
        Junior Subordinated Debentures.................................        34,500             34,500
    Unamortized issuance expenses......................................        (1,679)            (1,695)
                                                                         ------------        -----------
    Net Trust Preferred securities.....................................        32,821             32,805
                                                                         ------------        -----------

Stockholders' Equity:
    Serial preferred stock, $.01 par value, 7,000,000 shares
        authorized, no shares issued...................................           ---                ---
    Common stock, $.01 par value, 15,000,000 shares authorized,
        11,900,000 shares  issued  and  8,117,313  and  8,396,019
        shares outstanding  at September 30, 2000 and June 30, 2000
        (excluding  shares  held in treasury of 3,782,687 and
        3,503,981 at September 30, 2000 and June 30, 2000).............            60                 60
    Additional paid-in capital.........................................        60,792             60,523
    Employee Stock Ownership Plan Trust debt...........................        (2,191)            (2,320)
    Retained earnings, partially restricted............................        94,610             91,840
    Treasury stock, at cost, 3,782,687 and 3,503,981 shares at
        September 30, 2000 and June 30, 2000...........................       (39,876)           (36,122)
                                                                         ------------        -----------
    Total stockholders' equity.........................................       113,395            113,981
                                                                         ------------        -----------
                                                                           $1,710,467         $1,729,219
                                                                         ============       ============
</TABLE>

See notes to consolidated financial statements.

                                       2
<PAGE>

PennFed Financial Services, Inc. and Subsidiaries
Consolidated Statements of Income

<TABLE>
<CAPTION>
                                                                           Three months ended September 30,
                                                                               2000              1999
                                                                           -----------        -----------
                                                                            (Dollars in thousands, except
                                                                                  per share amounts)
Interest and Dividend Income:
<S>                                                                           <C>                <C>
    Interest and fees on loans.........................................       $23,327            $19,037
    Interest on federal funds sold.....................................            16                ---
    Interest and dividends on investment securities....................         5,665              5,583
    Interest on mortgage-backed securities.............................         1,428              2,015
                                                                            ---------          ---------
                                                                               30,436             26,635
                                                                            ---------          ---------
Interest Expense:
    Deposits...........................................................        13,202             11,409
    Borrowed funds.....................................................         7,379              5,285
    Trust Preferred securities.........................................           783                783
                                                                            ---------          ---------
                                                                               21,364             17,477
                                                                            ---------          ---------
Net Interest and Dividend Income Before Provision
    for Loan Losses....................................................         9,072              9,158
Provision for Loan Losses..............................................           200                210
                                                                            ---------          ---------
Net Interest and Dividend Income After Provision
    for Loan Losses....................................................         8,872              8,948
                                                                            ---------          ---------

Non-Interest Income:
    Service charges....................................................           577                556
    Net gain from real estate operations...............................           ---                 30
    Net gain on sales of loans.........................................           314                 33
    Other..............................................................           168                189
                                                                            ---------         ----------
                                                                                1,059                808
                                                                            ---------         ----------

Non-Interest Expenses:
    Compensation and employee benefits.................................         2,666              2,511
    Net occupancy expense..............................................           395                383
    Equipment..........................................................           448                440
    Advertising........................................................           118                 82
    Amortization of intangibles........................................           510                562
    Federal deposit insurance premium..................................            55                159
    Other..............................................................           829                832
                                                                            ---------          ---------
                                                                                5,021              4,969
                                                                            ---------          ---------

Income Before Income Taxes.............................................         4,910              4,787
Income Tax Expense.....................................................         1,734              1,705
                                                                            ---------          ---------
Net Income.............................................................     $   3,176          $   3,082
                                                                            =========          =========

Weighted average number of common shares outstanding:
    Basic..............................................................     7,807,413          8,296,598
                                                                            =========          =========
    Diluted............................................................     8,242,969          8,909,660
                                                                            =========          =========

Net income per common share:
    Basic..............................................................         $0.41              $0.37
                                                                                =====              =====
    Diluted............................................................         $0.39              $0.35
                                                                                =====              =====
</TABLE>

See notes to consolidated financial statements.

                                       3
<PAGE>

PennFed Financial Services, Inc. and Subsidiaries
Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                           Three months ended September 30,
                                                                               2000               1999
                                                                            ----------         -----------
                                                                                (Dollars in thousands)
Cash Flows from Operating Activities:
<S>                                                                          <C>                <C>
    Net income.........................................................      $  3,176           $  3,082
    Adjustments to reconcile net income to net cash provided by
      operating activities:
    Net gain on sales of loans.........................................          (314)               (33)
    Proceeds from sales of loans held for sale.........................        54,124              5,324
    Net gain on sales of real estate owned.............................           ---                (36)
    Amortization of investment and mortgage-backed securities
      premium, net.....................................................            39                 60
    Depreciation and amortization......................................           336                352
    Provision for losses on loans and real estate owned................           200                210
    Amortization of cost of stock plans................................           399                446
    Amortization of intangibles........................................           510                562
    Amortization of premiums on loans and loan fees....................           394                405
    Amortization of Trust Preferred securities issuance costs..........            16                 16
    Increase in accrued interest receivable net of accrued
      interest payable.................................................          (972)            (1,105)
    Decrease in other assets...........................................         1,974              1,204
    Decrease in accounts payable and other liabilities.................          (194)              (420)
    Increase (decrease) in mortgage escrow funds.......................           (54)               379
    Decrease in due to banks...........................................          (681)            (2,152)
    Other, net.........................................................           ---                (48)
                                                                             --------          ----------
Net cash provided by operating activities..............................        58,953              8,246
                                                                             --------          ----------

Cash Flows from Investing Activities:
    Proceeds from maturities of investment securities..................           ---                165
    Purchases of investment securities held to maturity................           ---            (19,991)
    Net outflow from loan originations net of principal
      repayments of loans .............................................       (25,274)           (13,661)
    Purchases of loans.................................................       (19,293)           (21,208)
    Proceeds from principal repayments of mortgage-backed securities...         9,826             13,813
    Purchases of mortgage-backed securities............................           ---                (65)
    Proceeds from sale of premises and equipment.......................           ---                250
    Purchases of premises and equipment................................          (539)              (816)
    Net inflow (outflow) from real estate owned activity...............           (28)               440
    Purchases of Federal Home Loan Bank of New York stock..............          (193)              (563)
                                                                             --------           --------
    Net cash used in investing activities..............................       (35,501)           (41,636)
                                                                             --------           --------

Cash Flows from Financing Activities:
    Net increase (decrease) in deposits................................        36,513               (359)
    Increase (decrease) in advances from the Federal Home Loan Bank
      of New York and other borrowings.................................       (54,710)            33,537
    Cash dividends paid................................................          (316)              (343)
    Purchases of treasury stock, net of reissuance.....................        (3,845)               152
                                                                            ---------           --------
    Net cash provided by (used in) financing activities................       (22,358)            32,987
                                                                            ---------           --------
Net Increase (Decrease) in Cash and Cash Equivalents...................         1,094               (403)
Cash and Cash Equivalents, Beginning of Period.........................        13,866              9,900
                                                                            ---------           --------
Cash and Cash Equivalents, End of Period...............................     $  14,960           $  9,497
                                                                            =========           ========
</TABLE>

                                       4
<PAGE>



PennFed Financial Services, Inc. and Subsidiaries
Consolidated Statements of Cash Flows (Continued)

<TABLE>
<CAPTION>
                                                                           Three months ended September 30,
                                                                               2000                1999
                                                                             --------           --------
                                                                                (Dollars in thousands)

Supplemental Disclosures of Cash Flow Information:
    Cash paid during the period for:
<S>                                                                          <C>                <C>
    Interest...........................................................      $ 20,515           $ 17,120
                                                                             ========           ========
    Income taxes.......................................................      $      1           $    209
                                                                             ========           ========

Supplemental Schedule of Non-Cash Activities:
    Transfer of loans receivable to real estate owned, net.............      $    271           $    114
                                                                             ========           ========
    Transfer of loans receivable to loans held for sale, at market.....      $ 72,160           $    111
                                                                             ========           ========
</TABLE>


See notes to consolidated financial statements.

                                       5
<PAGE>

                PENNFED FINANCIAL SERVICES, INC. AND SUBSIDIARIES
                   NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Presentation

The interim  consolidated  financial  statements of PennFed Financial  Services,
Inc. ("PennFed") and subsidiaries (with its subsidiaries, the "Company") include
the accounts of PennFed and its  subsidiaries,  Penn  Federal  Savings Bank (the
"Bank")  and  PennFed  Capital  Trust I. These  interim  consolidated  financial
statements  included  herein  should be read in  conjunction  with the Company's
Annual  Report  on Form  10-K for the year  ended  June 30,  2000.  The  interim
consolidated  financial statements reflect all normal and recurring  adjustments
which  are,  in the  opinion  of  management,  considered  necessary  for a fair
presentation  of the  financial  condition  and  results of  operations  for the
periods presented.  There were no adjustments of a non-recurring nature recorded
during the three months ended  September 30, 2000 and 1999. The interim  results
of operations  presented are not  necessarily  indicative of the results for the
full year.

When  necessary,  reclassifications  have been made to conform to current period
presentation.

2. Adoption of Recently Issued Accounting Standards

Effective July 1, 2000, the Company  adopted  Statement of Financial  Accounting
Standards ("SFAS") No. 133,  "Accounting for Derivative  Instruments and Hedging
Activities" ("SFAS 133"), SFAS No. 137,  "Accounting for Derivative  Instruments
and Hedging  Activities - Deferral of the Effective  Date of FASB  Statement No.
133" ("SFAS 137") and SFAS No. 138,  "Accounting for Derivative  Instruments and
Hedging  Activities - an amendment of FASB Statement No. 133" ("SFAS 138"). SFAS
133 establishes  accounting and reporting standards for derivative  instruments,
including  certain  derivative  instruments  embedded in other contracts and for
hedging purposes.  SFAS 133 requires that an entity recognize all derivatives as
either assets or liabilities in the statement of financial condition and measure
those instruments at fair value. The accounting for changes in the fair value of
a derivative depends on the intended use of the derivative. SFAS 138 adds to the
accounting guidance for derivative instruments and hedging activities.  SFAS 133
as amended by SFAS 138 is intended to be  comprehensive  guidance on  accounting
for  derivatives and hedging  activities.  As of September 30, 2000, the Company
did not have any derivatives as defined under SFAS 133. Therefore,  the adoption
of the  new  accounting  standards  did  not  have an  effect  on the  Company's
financial condition, results of operations or cash flows.

3. Computation of EPS

The computation of EPS is presented in the following table.

<TABLE>
<CAPTION>
                                                             Three months ended September 30,
                                                                  2000               1999
                                                            -------------       ------------
                                                              (Dollars in thousands, except
                                                                    per share amounts)
<S>                                                                <C>                <C>
Net income.................................................        $3,176             $3,082
                                                            =============       ============

Number of shares outstanding:
Weighted average shares issued.............................    11,900,000         11,899,371
Less: Weighted average shares held in treasury.............     3,654,444          3,066,216
Less: Average shares held by the ESOP......................       952,000            952,000
Plus: ESOP shares released or committed to be released
         during the fiscal year............................       513,857            415,443
                                                            -------------       ------------
Average basic shares.......................................     7,807,413          8,296,598
Plus: Average common stock equivalents.....................       435,556            613,062
                                                            -------------       ------------
Average diluted shares.....................................     8,242,969          8,909,660
                                                            =============       ============

Earnings per common share:
        Basic..............................................         $0.41              $0.37
                                                            =============       ============
        Diluted............................................         $0.39              $0.35
                                                            =============       ============
</TABLE>

                                       6
<PAGE>



4. Stockholders' Equity and Regulatory Capital

The Bank's capital amounts and ratios are presented in the following table.

<TABLE>
<CAPTION>
                                                                                         To Be Well
                                                                    For Minimum       Capitalized Under
                                                                 Capital Adequacy     Prompt Corrective
                                              Actual                 Purposes         Action Provisions
                                        Amount      Ratio        Amount    Ratio      Amount      Ratio
                                       -------      -----       --------   -----     --------     -----
                                                             (Dollars in thousands)
As of September 30, 2000
<S>                                    <C>          <C>         <C>        <C>       <C>         <C>
Tangible capital, and ratio to
   adjusted total assets...........    $136,207     8.00%       $25,538    1.50%       N/A         N/A
Tier I (core) capital, and ratio to
   adjusted total assets...........    $136,207     8.00%       $68,102    4.00%     $85,128      5.00%
Tier I (core) capital, and ratio to
   risk-weighted assets............    $136,207    15.35%       $35,495    4.00%     $53,243      6.00%
Risk-based capital, and ratio to
   risk-weighted assets............    $140,205    15.80%       $70,990    8.00%     $88,738     10.00%

As of June 30, 2000
Tangible capital, and ratio to
   adjusted total assets...........    $133,365     7.76%       $25,785    1.50%       N/A         N/A
Tier I (core) capital, and ratio to
   adjusted total assets...........    $133,365     7.76%       $68,761    4.00%     $85,952      5.00%
Tier I (core) capital, and ratio to
   risk-weighted assets............    $133,365    15.07%       $35,395    4.00%     $53,093      6.00%
Risk-based capital, and ratio to
   risk-weighted assets............    $137,197    15.50%       $70,791    8.00%     $88,488     10.00%
</TABLE>

                                       7
<PAGE>


The previous table reflects  information for the Bank.  Savings and loan holding
companies,  such as PennFed, are not subject to capital requirements for capital
adequacy  purposes or for prompt corrective  action  requirements.  Bank holding
companies, however, are subject to capital requirements established by the Board
of Governors of the Federal  Reserve  System (the "FRB").  The  following  table
summarizes  the  Company's  capital  amounts and ratios under the FRB's  capital
requirements for bank holding companies.

<TABLE>
<CAPTION>
                                                                                         To Be Well
                                                                    For Minimum       Capitalized Under
                                                                 Capital Adequacy     Prompt Corrective
                                              Actual                 Purposes         Action Provisions
                                        Amount      Ratio        Amount    Ratio      Amount      Ratio
                                       -------      -----       --------   -----     --------     -----
                                                              (Dollars in thousands)

As of September 30, 2000
<S>                                    <C>          <C>         <C>        <C>       <C>         <C>
Tangible capital, and ratio to
   adjusted total assets...........    $137,729     8.00%       $25,813    1.50%         N/A        N/A
Tier I (core) capital, and ratio to
   adjusted total assets...........    $137,729     8.00%       $68,835    4.00%       $86,044     5.00%
Tier I (core) capital, and ratio to
   risk-weighted assets............    $137,729    15.73%       $35,017    4.00%       $52,526     6.00%
Risk-based capital, and ratio to
   risk-weighted assets............    $141,727    16.19%       $70,035    8.00%       $87,543    10.00%

As of June 30, 2000
Tangible capital, and ratio to
   adjusted total assets...........    $137,789     8.01%       $25,805    1.50%         N/A        N/A
Tier I (core) capital, and ratio to
   adjusted total assets...........    $137,789     8.01%       $68,814    4.00%       $86,018     5.00%
Tier I (core) capital, and ratio to
   risk-weighted assets............    $137,789    15.75%       $34,997    4.00%       $52,495     6.00%
Risk-based capital, and ratio to
   risk-weighted assets............    $141,621    16.19%       $69,993    8.00%       $87,492    10.00%
</TABLE>

5. Subsequent Event

On October 25, 2000, the Company  announced a 5% stock repurchase  program to be
in effect over the next 18 months.

                                       8
<PAGE>

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

General

The  Company's  results of operations  are  dependent  primarily on net interest
income,  which  is the  difference  between  the  income  earned  on  its  loan,
securities  and investment  portfolios and its cost of funds,  consisting of the
interest  paid on deposits and  borrowings.  General  economic  and  competitive
conditions,  particularly  changes in interest  rates,  government  policies and
actions of  regulatory  authorities,  also  significantly  affect the  Company's
results  of  operations.  Future  changes in  applicable  laws,  regulations  or
government policies may also have a material impact on the Company.

When  used in this  Form  10-Q and in future  filings  by the  Company  with the
Securities and Exchange  Commission (the "SEC"), in the Company's press releases
or other public or shareholder communications,  and in oral statements made with
the approval of an  authorized  executive  officer,  the words or phrases  "will
likely   result,"  "are  expected  to,"  "will   continue,"  "is   anticipated,"
"estimate,"   "project"  or  similar   expressions   are  intended  to  identify
"forward-looking  statements"  within  the  meaning  of the  Private  Securities
Litigation  Reform Act of 1995. Such statements are subject to certain risks and
uncertainties,  including, among other things, changes in economic conditions in
the  Company's  market  area,  changes  in  policies  by  regulatory   agencies,
fluctuations  in interest rates,  demand for loans in the Company's  market area
and  competition,  that could cause  actual  results to differ  materially  from
historical  earnings and those presently  anticipated or projected.  The Company
wishes  to  caution   readers   not  to  place   undue   reliance  on  any  such
forward-looking  statements,  which speak only as of the date made.  The Company
wishes  to advise  readers  that the  factors  listed  above  could  affect  the
Company's financial performance and could cause the Company's actual results for
future periods to differ  materially  from any opinions or statements  expressed
with respect to future periods in any current statements.

The Company does not undertake -- and specifically  declines any obligation - to
publicly  release  the  result  of  any  revisions  which  may  be  made  to any
forward-looking  statements to reflect events or circumstances after the date of
such  statements or to reflect the occurrence of  anticipated  or  unanticipated
events.

Financial Condition

Total assets  decreased  $18.8  million to $1.710  billion at September 30, 2000
from total assets of $1.729 billion at June 30, 2000. The decrease was primarily
due to the  sales  of  one-  to  four-family  residential  mortgage  loans.  The
Company's  current  asset/liability  management  strategy  includes  the sale of
conforming,  fixed rate one- to four-family  residential loan production.  Loans
sold under this  strategy  during the quarter  ended  September 30, 2000 totaled
nearly $8 million. In addition, during this quarter the Company sold $46 million
of one- to  four-family  residential  mortgage  loans in an  effort  to  improve
funding, liquidity, interest rate risk and net interest margin.

Deposits  increased  $37.5 million to $1.118  billion at September 30, 2000 from
$1.080  billion at June 30,  2000.  Approximately  $11 million of the growth was
attributable  to a new branch in  Roseland,  New Jersey  that opened on July 22,
2000.  Checking  account  balances  increased  $3.8  million from June 30, 2000.
Federal Home Loan Bank  ("FHLB") of New York  advances  increased  $10.0 million
from  $364.5  million at June 30, 2000 while other  borrowings  decreased  $64.7
million from $112.2  million at June 30, 2000 to $47.5  million at September 30,
2000. The decrease in other  borrowings  primarily  reflects the use of proceeds
from loan sales to reduce borrowings.

Non-performing  assets at September  30, 2000 remained  unchanged  from the $3.0
million, or 0.18% of total assets, recorded at June 30, 2000. Non-accruing loans
totaled  $2.4  million,  with a ratio of  non-accruing  loans to total  loans of
0.19%,  at  September  30, 2000 as compared to $2.7  million,  or 0.21% of total
loans,  at June 30, 2000.  Real estate owned  increased to $633,000 at September
30, 2000 from $334,000 at June 30, 2000.

Stockholders'  equity at September 30, 2000 totaled $113.4  million  compared to
$114.0 million at June 30, 2000. The decrease  primarily reflects the net income
recorded for the three months ended  September 30, 2000 offset by the repurchase
of 295,500 shares of the Company's  outstanding stock at an average market price
of $13.29 per share and the declaration of a cash dividend.

Results of Operations

General.  For the three  months  ended  September  30,  2000 net income was $3.2
million,  or $0.39 per diluted share, as compared to net income of $3.1 million,
or $0.35 per diluted share, for the comparable prior year period.


                                    9
<PAGE>

Interest and Dividend Income.  Interest and dividend income for the three months
ended  September 30, 2000  increased to $30.4 million from $26.6 million for the
three months ended  September  30, 1999.  This  increase was primarily due to an
increase in average  interest-earning  assets, when compared to the prior year's
first quarter. Average interest-earning assets were $1.690 billion for the three
months ended  September 30, 2000  compared to $1.518  billion for the prior year
period.  In  addition,  the  average  yield  earned on  interest-earning  assets
increased to 7.18% for the three months ended  September 30, 2000 from 7.00% for
the three months ended September 30, 1999.

Interest income on residential one- to four-family  mortgage loans for the three
months ended September 30, 2000 increased $3.2 million,  or 20.1%, when compared
to the prior year period. The increase in interest income on residential one- to
four-family mortgage loans was primarily due to a $161.2 million increase in the
average  balance  outstanding  to  $1.091  billion  for the three  months  ended
September  30, 2000  compared to $929.5  million for the prior year period.  The
increase in interest  income on residential  one- to four-family  mortgage loans
was also due to an increase of 16 basis  points in the average  yield  earned on
this loan portfolio to 7.10% for the three months ended  September 30, 2000 from
6.94% for the comparable prior year period.

For the three months ended September 30, 2000, interest income on commercial and
multi-family  real estate loans increased  $413,000,  or 26.6%, when compared to
the prior year period.  The increase in interest  income on this loan  portfolio
was  partially  attributable  to an  increase  of $17.5  million in the  average
outstanding balance for the three months ended September 30, 2000, when compared
to the three months ended September 30, 1999. The increase in interest income on
commercial and multi-family real estate loans was also reflective of an increase
of 18 basis  points in the average  yield  earned to 8.53% for the three  months
ended September 30, 2000, compared to 8.35% for the three months ended September
30, 1999.

Interest income on consumer loans increased  $640,000,  or 47.8%,  for the three
months ended September 30, 2000, compared to the prior year period. The increase
in interest  income for this loan portfolio was due to a $26.0 million  increase
in the average balance  outstanding to $100.4 million for the three months ended
September  30, 2000  compared to $74.4  million for the prior year period.  Also
contributing  to an increase in interest income on consumer loans was a 68 basis
point  increase in the average  yield earned on the consumer  loan  portfolio to
7.82% for the three months ended  September 30, 2000,  compared to 7.14% for the
prior year period.

Interest  income on  investment  securities  and other  interest-earning  assets
increased  $82,000  for the  three  months  ended  September  30,  2000 from the
comparable  prior year period.  The increase was primarily due to a $5.8 million
increase in the average balance outstanding for the current year period over the
prior year period. The effect on interest income from an increase in the average
balance was partially offset by a slight decrease in the average yield earned on
these  securities  to 6.96% for the  three  months  ended  September  30,  2000,
compared to 6.99% for the three months ended September 30, 1999.

Interest income on the mortgage-backed  securities  portfolio decreased $587,000
for the three  months  ended  September  30,  2000 as compared to the prior year
period. The decrease in interest income on mortgage-backed  securities primarily
reflects a $38.9 million  decrease in the average  balance  outstanding to $82.1
million  for the three  months  ended  September  30,  2000,  compared to $121.0
million for the prior year  period.  The  decrease  in the  average  balance was
partially offset by a 30 basis point increase in the average yield earned on the
mortgage-backed  securities  portfolio  to  6.96%  for the  three  months  ended
September 30, 2000, compared to 6.66% for the comparable prior year period.

Interest  Expense.  Interest expense increased $3.9 million for the three months
ended September 30, 2000 from $17.5 million for the comparable 1999 period.  The
increase  in the  current  year  period  was  attributable  to a $166.2  million
increase in total average  deposits,  borrowings and Trust Preferred  securities
and a 44 basis point  increase  in the  Company's  cost of funds.  For the three
months ended  September  30, 2000,  average  deposit  balances  increased  $54.1
million  to $1.105  billion  from  $1.051  billion  for the three  months  ended
September  30,  1999.  The average  rate paid on deposits  for the current  year
period  increased  to 4.74% as  compared  to 4.32%  for the three  months  ended
September 30, 1999.  Average FHLB of New York advances  increased  $93.8 million
for the three  months  ended  September  30,  2000 to $367.7  million  while the
average cost of advances increased 21 basis points to 6.14% for the same period,
when compared to the three months ended September 30, 1999. For the three months
ended  September 30, 2000,  the average  balance of other  borrowings  increased
$18.2 million from $81.9  million for the three months ended  September 30, 1999
as the average rate paid increased 84 basis points from 5.55% for the prior year
period.

                                       10
<PAGE>


Net Interest  and Dividend  Income.  Net  interest  and dividend  income  before
provision for loan losses for the three months ended September 30, 2000 was $9.1
million,  reflecting  an $86,000  decrease  from $9.2  million  recorded  in the
comparable  prior year  period.  The net  interest  rate spread and net interest
margin  for the three  months  ended  September  30,  2000 were 1.92% and 2.19%,
respectively, a decrease from 2.18% and 2.43%, respectively,  for the comparable
prior year period.  The current period decreases in the net interest rate spread
and net interest  margin were  primarily  attributable  to the  increases in the
average  balance and  average  rate paid on deposits  and  borrowings  partially
offset by growth in the  commercial  and  multi-family  real estate and consumer
loan portfolios.

Provision  for Loan Losses.  The  provision for loan losses for the three months
ended  September  30, 2000 was $200,000  compared to $210,000 for the prior year
period.  The  allowance  for loan losses at  September  30, 2000 of $4.1 million
reflects a $93,000 increase from the June 30, 2000 level. The allowance for loan
losses as a percentage of non-accruing  loans was 171.69% at September 30, 2000,
compared to 146.70% at June 30, 2000. The allowance for loan losses was 0.32% of
total loans at September 30, 2000, unchanged from June 30, 2000.

Non-Interest Income. For the three months ended September 30, 2000, non-interest
income was $1.1  million  compared to $808,000  for the prior year  period.  The
increase was primarily due to a net gain on sales of loans in the current period
of $314,000  compared to $33,000 for the three months ended  September 30, 1999.
Under  the  Company's  strategy  of  selling  conforming,  fixed  rate  one-  to
four-family  loan  production,  nearly $8 million of such loans sold  during the
three  months  ended  September  30, 2000  generated  gains of $107,000 for that
period.  In addition,  during the quarter  ended  September 30, 2000 the Company
sold $46 million of one- to  four-family  mortgage loans in an effort to improve
funding,  liquidity,  interest rate risk and net interest  margin and recorded a
net gain on sale of loans of  $207,000.  Service  charge  income  for the  three
months ended September 30, 2000 was $577,000, compared to $556,000 for the prior
year period. The net gain from real estate operations for the three months ended
September  30, 2000 was less than $1,000,  a decrease  from the $30,000 net gain
recorded  for the three months ended  September  30, 1999.  For the three months
ended September 30, 2000, other non-interest income reflected a $21,000 decrease
from the prior year  period.  Other  non-interest  income  included  $84,000 and
$65,000 in earnings from the Investment Services at Penn Federal program for the
three  months  ended  September  30, 2000 and 1999,  respectively.  Through this
program,  customers  have  convenient  access to  financial  consulting/advisory
services and related uninsured non-deposit investment and insurance products.

Non-Interest  Expenses.  Non-interest  expenses  were $5.0 million for the three
months ended  September 30, 2000,  unchanged from the amount recorded during the
prior year period.  However, the Company's non-interest expenses as a percent of
average assets  decreased to 1.15% for the three months ended September 30, 2000
from 1.26% for the  comparable  prior year period due to the increase in average
assets during the three months ended September 30, 2000.

Income Tax  Expense.  Income tax expense was $1.7  million for the three  months
ended  September  30,  2000,  unchanged  from the amount  recorded for the three
months ended  September  30, 1999.  The  effective tax rate for the three months
ended  September  30, 2000 was 35.3%.  The  effective tax rate was 35.6% for the
three months ended September 30, 1999.

Analysis of Net Interest Income

The  following  table sets forth certain  information  relating to the Company's
consolidated  statements of financial condition and the consolidated  statements
of income for the three months ended  September 30, 2000 and 1999,  and reflects
the average  yield on assets and  average  cost of  liabilities  for the periods
indicated.  Such yields and costs are derived from average daily  balances.  The
average balance of loans receivable includes  non-accruing loans. The yields and
costs include fees which are considered adjustments to yields.

                                       11
<PAGE>

<TABLE>
<CAPTION>
                                                          Three Months Ended September 30,
                                        ------------------------------------------------------------------
                                                        2000                              1999
                                        --------------------------------   -------------------------------
                                           Average    Interest                Average   Interest
                                         Outstanding   Earned/   Yield/     Outstanding  Earned/   Yield/
                                           Balance      Paid    Rate (1)      Balance      Paid   Rate (1)
                                        ----------------------- --------   -------------------------------
                                                              (Dollars in thousands)
Interest-earning assets:
<S>                                      <C>          <C>         <C>     <C>           <C>         <C>
   One- to four-family mortgage
      loans...........................   $1,090,750   $19,380     7.10%   $   929,523   $16,143     6.94%
   Commercial and multi-family real
      estate loans....................       90,524     1,967     8.53         73,049     1,554     8.35
   Consumer loans.....................      100,406     1,980     7.82         74,449     1,340     7.14
                                        ------------ --------            ------------  --------
      Total loans receivable..........    1,281,680    23,327     7.26      1,077,021    19,037     7.05

   Federal funds sold.................          984        16     6.37            ---       ---      ---
   Investment securities and other....      325,404     5,665     6.96        319,616     5,583     6.99
   Mortgage-backed securities.........       82,042     1,428     6.96        120,969     2,015     6.66
                                        ----------- ---------            ------------  --------
      Total interest-earning assets...    1,690,110   $30,436     7.18      1,517,606   $26,635     7.00
                                                    =========                          ========

Non-interest earning assets...........       56,433                            56,137
                                        -----------                      ------------
      Total assets ...................   $1,746,543                       $ 1,573,743
                                        ===========                      ============

Deposits, borrowings and Trust
   Preferred securities:
   Money market and demand deposits...  $   125,076   $   441     1.40%   $   110,982   $   289     1.03%
   Savings deposits...................      155,365       621     1.59        165,212       692     1.66
   Certificates of deposit............      824,672    12,140     5.84        774,774    10,428     5.36
                                        ----------- ---------            ------------  --------
      Total deposits..................    1,105,113    13,202     4.74      1,050,968    11,409     4.32

   FHLB of New York advances..........      367,680     5,745     6.14        273,906     4,123     5.93
   Other borrowings...................      100,040     1,634     6.39         81,865     1,162     5.55
                                        ----------- ---------            ------------   -------
      Total deposits and borrowings...    1,572,833    20,581     5.17      1,406,739    16,694     4.71
   Trust Preferred securities.........       32,813       783     9.55         32,751       783     9.56
                                        ----------- ---------            -------------  -------

      Total deposits, borrowings and
          Trust Preferred securities..    1,605,646   $21,364     5.26      1,439,490   $17,477     4.82
                                                      =======                           =======

Other liabilities.....................       27,282                            25,405
                                        ------------                     ------------
      Total liabilities...............    1,632,928                         1,464,895
Stockholders' equity..................      113,615                           108,848
                                        -----------                      ------------
      Total liabilities and
          stockholders' equity .......  $ 1,746,543                       $ 1,573,743
                                        ===========                      ============

Net interest income and net
   interest rate spread...............               $  9,072     1.92%                $  9,158     2.18%
                                                     ========     ====                 ========     ====

Net interest-earning assets and
   interest margin ...................  $    84,464               2.19%   $    78,116               2.43%
                                        ===========               ====   ============               ====

Ratio of interest-earning assets to
   deposits, borrowings and Trust
     Preferred securities.............                          105.26%                           105.43%
                                                                ======                            ======
</TABLE>

(1)  Annualized.

                                       12
<PAGE>

Non-Performing Assets

The  table  below  sets  forth  the   Company's   amounts  and   categories   of
non-performing   assets.  Loans  are  placed  on  non-accrual  status  when  the
collection of principal or interest becomes  delinquent more than 90 days. There
are no loans delinquent more than 90 days which are still accruing.  Real estate
owned  represents  assets  acquired in  settlement  of loans and is shown net of
valuation allowances.

<TABLE>
<CAPTION>
                                                          September 30,        June 30,
                                                              2000                2000
                                                          -------------         ----------
                                                               (Dollars in thousands)
Non-accruing loans:
<S>                                                            <C>                <C>
    One- to four-family..................................      $1,845             $2,152
    Commercial and multi-family..........................          95                 95
    Consumer.............................................         434                468
                                                            ---------           --------
        Total non-accruing loans.........................       2,374              2,715

Real estate owned, net...................................         633                334
                                                            ---------           --------
        Total non-performing assets......................       3,007              3,049
                                                            ---------           --------
        Total risk elements..............................      $3,007             $3,049
                                                            =========           ========

Non-accruing loans as a percentage of total loans........        0.19%              0.21%
                                                            =========           ========

Non-performing assets as a percentage of total assets....        0.18%              0.18%
                                                            =========           ========

Total risk elements as a percentage of total assets......        0.18%              0.18%
                                                            =========           ========
</TABLE>

Allowance for Loan Losses. The allowance for loan losses is established  through
a  provision  for loan  losses  based  on  management's  evaluation  of the risk
inherent in its loan  portfolio and changes in the nature and volume of its loan
activity.  Such  evaluation,  which  includes  a review of loans for which  full
collectibility  may not be reasonably  assured,  considers  among other matters,
loan  classifications,  the estimated fair value of the  underlying  collateral,
economic  conditions,  historical loan loss  experience,  and other factors that
warrant recognition in providing for an adequate loan loss allowance.

Real estate properties acquired through foreclosure are recorded at the lower of
cost or estimated fair value less costs to dispose of such  properties.  If fair
value at the date of  foreclosure is lower than the balance of the related loan,
the difference  will be charged-off to the allowance for loan losses at the time
of transfer.  Valuations are periodically updated by management and if the value
declines, a specific provision for losses on real estate owned is established by
a charge to operations.

Although  management  believes  that it uses the best  information  available to
determine  the  allowances,   unforeseen   market  conditions  could  result  in
adjustments and net earnings could be  significantly  affected if  circumstances
differ   substantially   from  the   assumptions   used  in  making   the  final
determination.  Future additions to the Company's  allowances will be the result
of periodic loan,  property and collateral  reviews and thus cannot be predicted
in advance. In addition, federal regulatory agencies, as an integral part of the
examination  process,  periodically  review  the  Company's  allowance  for loan
losses.  Such  agencies  may  require  the  Company to record  additions  to the
allowance level based upon their assessment of the information available to them
at the time of their examination. At September 30, 2000, the Company had a total
allowance  for  loan  losses  of $4.1  million  representing  171.69%  of  total
non-accruing loans and 0.32% of total loans.

Interest Rate Sensitivity

Interest Rate Gap. The interest rate risk inherent in assets and liabilities may
be determined by analyzing the extent to which such assets and  liabilities  are
"interest  rate  sensitive"  and by measuring  an  institution's  interest  rate
sensitivity  "gap." An asset or liability is said to be interest rate  sensitive
within a defined time period if it matures or reprices  within that period.  The
difference or mismatch between the amount of interest-earning assets maturing or
repricing within a defined period and the amount of interest-bearing liabilities
maturing or  repricing  within the same period is defined as the  interest  rate
sensitivity  gap. An  institution  is  considered  to have a negative gap if the
amount

                                       13
<PAGE>

of  interest-bearing  liabilities  maturing or repricing within a specified time
period  exceeds the amount of  interest-earning  assets  maturing  or  repricing
within the same period. If more  interest-earning  assets than  interest-bearing
liabilities mature or reprice within a specified period, then the institution is
considered  to have a  positive  gap.  Accordingly,  in a rising  interest  rate
environment,  in an  institution  with a  negative  gap,  the  cost of its  rate
sensitive  liabilities would  theoretically rise at a faster pace than the yield
on its rate sensitive assets, thereby diminishing future net interest income. In
a falling interest rate environment, a negative gap would indicate that the cost
of rate sensitive  liabilities  would decline at a faster pace than the yield on
rate sensitive assets and improve net interest income. For an institution with a
positive gap, the reverse would be expected.

At September  30, 2000,  the  Company's  total  deposits,  borrowings  and Trust
Preferred  securities  maturing or repricing  within one year exceeded its total
interest-earning assets maturing or repricing within one year by $350.9 million,
representing  a one year negative gap of 20.52% of total  assets,  compared to a
one year negative gap of 22.12% of total assets at June 30, 2000.  The Company's
improvement  in the  negative  gap  position  from June 30,  2000 was  partially
brought about by a reduction in short-term  borrowings as the result of the sale
of $53.8 million of fixed rate one- to four-family  residential  mortgage loans.
Also  contributing  to the  improvement  in the  negative  gap  position  was an
increase  in  core  deposits  and   medium-term   certificates  of  deposit  and
borrowings.  The Company continued to focus on increasing  balances of fixed and
variable rate  commercial and  multi-family  real estate loans and consumer loan
products,  whose repayment and repricing  characteristics  are typically  faster
than  their  fixed  rate  one-  to   four-family   residential   mortgage   loan
counterparts.  At June 30, 2000, the Company had $30 million in notional  amount
of interest rate swaps,  designed to  synthetically  lengthen the  maturities of
short-term  deposits.  During the three months ended  September 30, 2000,  these
interest rate swaps matured or were terminated  early.  This  elimination of the
hedge  portfolio  partially  offset the improvement in the negative gap position
from June 30, 2000.

In evaluating the Company's exposure to interest rate risk, certain  limitations
inherent in the method of interest  rate gap analysis  must be  considered.  For
example,  although certain assets and liabilities may have similar maturities or
periods to repricing,  they may react in different  degrees to changes in market
interest  rates.  Also,  the  interest  rates on  certain  types of  assets  and
liabilities may fluctuate in advance of changes in market interest rates,  while
interest  rates  on  other  types  may  lag  behind  changes  in  market  rates.
Additionally,  certain assets, such as adjustable rate mortgages,  have features
which restrict  changes in interest rates in the short-term and over the life of
the asset.  Further, in the event of a change in interest rates,  prepayment and
early  withdrawal  levels  may  deviate  significantly  from  those  assumed  in
calculating the gap position.  Finally, the ability of many borrowers to service
their debt may decrease in the event of an interest rate  increase.  The Company
considers all of these factors in monitoring its exposure to interest rate risk.

Net Portfolio Value.  The Company's  interest rate sensitivity is also regularly
monitored by management  through selected  interest rate risk ("IRR")  measures,
including an IRR "Exposure Measure" or "Post-Shock" NPV ratio and a "Sensitivity
Measure." A low Post-Shock NPV ratio indicates  greater exposure to IRR. Greater
exposure can result from a low initial NPV ratio or high  sensitivity to changes
in interest rates.  The  Sensitivity  Measure is the change in the NPV ratio, in
basis points, caused by a 2% increase or decrease in rates, whichever produces a
larger decline. At least quarterly, and generally monthly, management models the
change in net portfolio value ("NPV") over a variety of interest rate scenarios.
NPV is the present  value of expected  cash flows from assets,  liabilities  and
off-balance  sheet  contracts.  An NPV ratio, in any interest rate scenario,  is
defined as the NPV in that rate  scenario  divided by the market value of assets
in the same scenario.

As of September 30, 2000, the Bank's internally  generated initial NPV ratio was
10.75%.  Following a 2% increase in interest  rates,  the Bank's  Post-Shock NPV
ratio was 8.03%. The change in the NPV ratio, or the Bank's Sensitivity Measure,
was 2.72%.  Though NPV is "measured" on an  unconsolidated  basis for regulatory
purposes,  it is managed on a consolidated  basis. As of September 30, 2000, the
Company's  internally  generated  initial NPV ratio was 10.88%,  the  Post-Shock
ratio was 8.16%, and the Sensitivity  Measure was 2.72%.  Variances  between the
Bank's and the  Company's  NPV ratios are  attributable  to balance  sheet items
which are  adjusted  during  consolidation,  such as  investments,  intercompany
borrowings and capital.

Internally  generated NPV  measurements  are based on simulations  which utilize
institution  specific assumptions and, as such, generally result in lower levels
of presumed  interest  rate risk (i.e.,  higher  Post-Shock  NPV ratio and lower
Sensitivity  Measure)  than Office of Thrift  Supervision  ("OTS")  measurements
indicate.

The OTS measures the Bank's (unconsolidated) IRR on a quarterly basis using data
from the  quarterly  Thrift  Financial  Reports  filed by the Bank with the OTS,
coupled with  non-institution  specific  assumptions which are based on national
averages.  As of June 30,  2000  (the  latest  date  for  which  information  is
available), the Bank's initial NPV ratio, as

                                       14
<PAGE>


measured by the OTS, was 6.97%,  the Bank's  Post-Shock  ratio was 3.62% and the
Sensitivity Measure was 3.35%.

In addition to monitoring NPV and gap,  management also monitors the duration of
assets and  liabilities  and the effects on net interest  income  resulting from
parallel and non-parallel increases or decreases in rates.

At September 30, 2000, based on its internally  generated simulation models, the
Company's  consolidated net interest income projected for one year forward would
decrease  13.73%  from the base  case,  or  current  market,  as a result  of an
immediate and sustained 2% increase in interest rates.

Year 2000

By following a carefully prescribed Year 2000 Project Plan, all mission-critical
systems, including interfaces to the main systems, were completely renovated and
tested.  To date, the Company has not  experienced  any problems with respect to
the century  rollover.  The Company  will  continue to monitor for any Year 2000
problems, as appropriate, through the end of the calendar year.

The cost for the Year 2000  effort  incurred  in  fiscal  1999 was  $45,000.  No
additional costs were incurred in fiscal 2000 and no additional expenditures are
anticipated.  The actual  expenditures do not include  manpower costs of Company
personnel associated with this effort, who retained their individual operational
responsibilities in addition to Year 2000 duties. No assurance can be given that
any remaining  issues relating to the Year 2000 will not have a material adverse
effect on the Company's financial condition or results of operations.

Liquidity and Capital Resources

The  Company's  primary  sources of funds are  deposits,  principal and interest
payments on loans and mortgage-backed  securities,  and borrowings from the FHLB
of New York.  While  scheduled  loan  repayments  and maturing  investments  are
relatively  predictable,  deposit  flows  and  early  loan  repayments  are more
influenced by interest rates,  general economic conditions and competition.  The
Company has  competitively set rates on deposit products for selected terms and,
when necessary,  has  supplemented  deposits with  longer-term or less expensive
alternative sources of funds.

Federal  regulations  require  the Bank to  maintain  minimum  levels  of liquid
assets. The required percentage has varied from time to time based upon economic
conditions  and savings  flows.  The current  required  percentage  is 4% of net
withdrawable  deposits  payable on demand or in one year or less and  borrowings
payable  on demand or in one year or less,  both as of the end of the  preceding
calendar quarter. Liquid assets for purposes of this ratio include cash, accrued
interest  receivable,  certain  time  deposits,  U.S.  Treasury  and  government
agencies  and  other  securities  and  obligations  generally  having  remaining
maturities  of  less  than  five  years.  All  mortgage-backed   securities  are
includable in liquid assets,  as well. The Company's most liquid assets are cash
and cash equivalents,  U.S.  government  agency  securities and  mortgage-backed
securities.  The levels of these assets are  dependent on the Bank's  operating,
financing,  lending  and  investing  activities  during  any  given  period.  At
September 30, 2000 and June 30, 2000, the Bank's liquidity ratios were 9.90% and
8.71%, respectively.

The Company uses its liquid resources  principally to fund maturing certificates
of deposit and deposit  withdrawals,  to purchase loans and securities,  to fund
existing and future loan commitments, and to meet operating expenses. Management
believes  that loan  repayments  and other  sources of funds will be adequate to
meet the Company's foreseeable liquidity needs.

The  Company's  cash needs for the three  months ended  September  30, 2000 were
provided by operating  activities,  primarily  from  proceeds  from the sales of
loans,  increased deposits and principal repayments on loans and mortgage-backed
securities.  During  this  period,  the cash  provided  was  used for  investing
activities,  which included the origination and purchase of loans, as well as to
reduce  borrowings.  During the three months ended  September 30, 1999, the cash
needs of the Company  were  provided  by  operating  activities,  an increase in
advances  from  the  FHLB of New  York and  principal  repayments  on loans  and
mortgage-backed securities. The cash provided was used for investing activities,
which  included  the  origination  and  purchase  of loans and the  purchase  of
investment securities.

Current  regulatory  standards  impose the  following  capital  requirements:  a
risk-based capital standard expressed as a percentage of risk-adjusted assets; a
ratio of core capital to risk-adjusted  assets; a leverage ratio of core capital
to total adjusted assets; and a tangible capital ratio expressed as a percentage
of total  adjusted  assets.  As of  September  30, 2000,  the Bank  exceeded all
regulatory   capital   requirements   and  qualified  as  a   "well-capitalized"
institution (see Note 4. - Stockholders'  Equity and Regulatory  Capital, in the
Notes to Consolidated Financial Statements).

                                       15
<PAGE>


PART II - Other Information

Item 1.  Legal Proceedings
         None.

Item 2.  Changes in Securities
         None.

Item 3.  Defaults Upon Senior Securities
         None.

Item 4.  Submission of Matters to a Vote of Security Holders
         None.

Item 5.  Other Information
         None.

Item 6.  Exhibits and Reports on Form 8-K

         (a)  Exhibits
              Exhibit 11: Statement Regarding Computation of Per Share Earnings.
              Exhibit 27: Financial Data Schedule.

         (b)  Reports on Form 8-K
              On July 26, 2000, PennFed  Financial Services,  Inc. (the Company)
              issued a press release announcing its fourth quarter results.


                                       16
<PAGE>

                                   SIGNATURES

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

                                  PENNFED FINANCIAL SERVICES, INC.



Date: November 14, 2000           By: /s/ Joseph L. LaMonica
                                      -------------------------------------
                                        Joseph L. LaMonica
                                        President and Chief
                                        Executive Officer

Date: November 14, 2000           By: /s/ Lucy T. Tinker
                                      -------------------------------------
                                        Lucy T. Tinker
                                        Senior Executive Vice President and
                                        Chief Operating Officer
                                        (Principal Financial Officer)

Date: November 14, 2000           By: /s/ Jeffrey J. Carfora
                                      -------------------------------------
                                        Jeffrey J. Carfora
                                        Executive Vice President and
                                        Chief Financial Officer
                                       (Principal Accounting Officer)

                                       17