UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                    FORM 10-K
(Mark One)
[X]  ANNUAL REPORT  PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES  EXCHANGE
     ACT OF 1934 For the Fiscal Year Ended December 31, 2006

                                     - OR -

[ ]  TRANSITION  REPORT  PURSUANT  TO  SECTION  13 OR  15(d)  OF THE  SECURITIES
     EXCHANGE ACT OF 1934

For the transition period from ____________________ to _________________________

Commission File Number: 000-52000

                           ROMA FINANCIAL CORPORATION
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)

            United States                                51-0533946
----------------------------                 -----------------------------------
(State or other jurisdiction                 I.R.S. Employer Identification No.)
of incorporation or organization)

    2300 Route 33, Robbinsville, New Jersey                 08691
---------------------------------------------     -------------------------
     (Address of principal executive offices)             (Zip Code)

Registrant's telephone number, including area code: (609) 223-8300
                                                    --------------

           Securities registered pursuant to Section 12(b) of the Act:

       Title of each class             Name of each exchange on which registered
       -------------------             -----------------------------------------
  Common Stock, $0.10 par value              The NASDAQ Stock Market LLC

        Securities registered pursuant to Section 12(g) of the Act:  None
                                                                     ----

Indicate by check mark if the  registrant is a well-known  seasoned  issuer,  as
defined in Rule 405 of the Securities Act. [ ] YES   [X] NO

Indicate  by  check  mark if the  registrant  is not  required  to file  reports
pursuant to Section 13 or Section 15(d) of the Act. [ ] YES   [X] NO

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  filing
requirements for the past 90 days. [X] YES   [ ] NO

Indicate by check mark if disclosure of delinquent  filers  pursuant to Item 405
of Regulation  S-K is not contained  herein,  and will not be contained,  to the
best of registrant's  knowledge,  in definitive proxy or information  statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [X]

Indicate by check mark whether the registrant is a large  accelerated  filer, an
accelerated  filer, or a  non-accelerated  filer. See definition of "accelerated
filer" and "large  accelerated  filer" in Rule 12b-2 of the  Exchange Act (Check
one):
Large accelerated filer [ ]   Accelerated filer [ ]   Non-accelerated filer [X]

Indicate by check mark whether the  registrant is a shell company (as defined in
Rule 12b-2 of the Act). [ ] YES   [X] NO

         As of June 30, 2006,  the last  business day of the  registrant's  most
recently  completed second fiscal quarter,  the registrant had not completed its
initial public offering, thus the aggregate market value of voting stock held by
non-affiliates of the registrant at that date was $0. As of March 1, 2007, there
were 32,731,875 shares outstanding of the registrant's common stock.

                      DOCUMENTS INCORPORATED BY REFERENCE:

  Portions of the Proxy Statement for the 2007 Annual Meeting of Shareholders.
                                   (Part III)

<PAGE>

                                     PART I

Forward-Looking Statements

         Roma Financial  Corporation  (the "Company" or  "Registrant")  may from
time to  time  make  written  or oral  "forward-looking  statements,"  including
statements  contained in the Company's  filings with the Securities and Exchange
Commission (including this Annual Report on Form 10-K and the exhibits thereto),
in its reports to stockholders and in other communications by the Company, which
are made in good faith by the Company  pursuant to the "safe harbor"  provisions
of the private securities litigation reform act of 1995.

         These forward-looking statements involve risks and uncertainties,  such
as statements of the Company's plans,  objectives,  expectations,  estimates and
intentions,  that are subject to change based on various important factors (some
of which are beyond the Company's control). The following factors, among others,
could cause the Company's  financial  performance to differ  materially from the
plans,  objectives,  expectations,  estimates and  intentions  expressed in such
forward-looking statements: The strength of the United States economy in general
and  the  strength  of  the  local  economies  in  which  the  Company  conducts
operations;  the effects of, and changes in, trade, monetary and fiscal policies
and laws,  including  interest  rate  policies of the board of  governors of the
federal  reserve  system,   inflation,   interest  rate,   market  and  monetary
fluctuations;  the timely  development  of and  acceptance  of new  products and
services of the Company and the perceived  overall  value of these  products and
services by users,  including  the  features,  pricing  and quality  compared to
competitors'  products and  services;  the  willingness  of users to  substitute
competitors' products and services for the Company's products and services;  the
success of the  Company in  gaining  regulatory  approval  of its  products  and
services,  when required;  the impact of changes in financial services' laws and
regulations   (including  laws  concerning   taxes,   banking,   securities  and
insurance);  technological changes,  acquisitions;  changes in consumer spending
and saving habits; and the success of the Company at managing the risks involved
in the foregoing.

         The Company  cautions that the foregoing  list of important  factors is
not  exclusive.  The Company does not  undertake  to update any  forward-looking
statement,  whether written or oral, that may be made from time to time by or on
behalf of the Company.

Item 1.  Business
-----------------

General

         Roma  Financial  Corporation  is  a   federally-chartered   corporation
organized in January 2005 for the purpose of acquiring  all of the capital stock
that Roma Bank (the "Bank") issued in its mutual holding company reorganization.
Roma Financial  Corporation's  principal  executive  offices are located at 2300
Route  33,  Robbinsville,  New  Jersey  08691 and its  telephone  number at that
address is (609) 223-8300.

         Roma Financial Corporation, MHC is a federally-chartered mutual holding
company that was formed in January 2005 in  connection  with the mutual  holding
company reorganization.  Roma Financial Corporation,  MHC has not engaged in any
significant business since its formation.  So long as Roma Financial Corporation
MHC is in  existence,  it will at all times own a  majority  of the  outstanding
stock of Roma Financial Corporation.

         Roma  Bank  is  a  federally-chartered   stock  savings  bank.  It  was
originally founded in 1920 and

                                       2

<PAGE>

received its federal charter in 1991. Roma Bank's deposits are federally insured
by the Deposit  Insurance Fund as administered by the Federal Deposit  Insurance
Corporation.  Roma Bank is regulated by the Office of Thrift Supervision and the
Federal Deposit  Insurance  Corporation.  The Office of Thrift  Supervision also
regulates Roma  Financial  Corporation,  MHC and Roma  Financial  Corporation as
savings and loan holding companies.

         Roma  Bank  offers   traditional   retail  banking   services,   one-to
four-family  residential  mortgage loans,  multi-family and commercial  mortgage
loans,  construction  loans,  commercial  business  loans  and  consumer  loans,
including  home equity  loans and lines of credit.  As of March 2007,  Roma Bank
operated  from its main office in  Robbinsville,  New Jersey,  and eight  branch
offices  located in Mercer,  Burlington and Ocean  Counties,  New Jersey.  As of
December  31,  2006,  the  Bank had 140  full-time  employees  and 33  part-time
employees. Roma Bank maintains a website at www.romabank.com.

         Roma Financial  Corporation  conducted a minority stock offering during
2006  in  which  30% of its  outstanding  stock  was  sold  to the  public  in a
subscription  offering.  The offering  closed July 11, 2006 and the net proceeds
from the offering  were  approximately  $96.1 million  (gross  proceeds of $98.2
million  for  the  issuance  of  9,819,562   shares,   less  offering  costs  of
approximately  $2.1 million).  The Company also issued 22,584,995 shares to Roma
Financial  Corporation,  MHC and  327,318  shares  to the  Roma  Bank  Community
Foundation,  Inc.,  resulting  in  a  total  of  32,731,875  shares  issued  and
outstanding after the completion of the offering. A portion of the proceeds were
loaned to the Roma Bank Employee Stock Ownership Plan (ESOP) to purchase 811,750
shares of the Company's stock at a cost of $8.1 million.

         Throughout  this document,  references to "we," "us," or "our" refer to
the Bank or Company, or both, as the context indicates.

Competition

         We operate in a market  area with a high  concentration  of banking and
financial  institutions,  and we  face  substantial  competition  in  attracting
deposits and in originating loans. A number of our competitors are significantly
larger institutions with greater financial and managerial  resources and lending
limits.  Our ability to compete  successfully is a significant  factor affecting
our growth potential and profitability.

         Our competition for deposits and loans historically has come from other
insured  financial  institutions  such as local and regional  commercial  banks,
savings  institutions,  and credit unions located in our primary market area. We
also compete with mortgage  banking and finance  companies for real estate loans
and with commercial  banks and savings  institutions  for consumer loans, and we
face  competition  for funds  from  investment  products  such as mutual  funds,
short-term money funds and corporate and government securities.  There are large
competitors  operating throughout our total market area, and we also face strong
competition from other  community-based  financial  institutions.  Approximately
thirty other  institutions  operate in the Bank's market area,  with asset sizes
ranging from $150 million to $50+ billion.

                                       3

<PAGE>

Lending Activities

Analysis of Loan Portfolio

         We have traditionally focused on the origination of one- to four-family
loans,  which comprise a significant  majority of the total loan  portfolio.  We
also  provide  financing  for  commercial  real estate,  including  multi-family
dwellings/apartment buildings, service/retail and mixed-use properties, churches
and non-profit  properties,  medical and dental  facilities and other commercial
real estate.  After real estate mortgage  lending,  consumer lending is our next
largest  category of lending and is primarily  composed of home equity loans and
lines  of  credit.   We  also  originate   construction   loans  for  individual
single-family  residences  and  commercial  loans to businesses  and  non-profit
organizations, generally secured by real estate.

                                       4

<PAGE>

         Loan   Portfolio   Composition.   The  following   table  analyzes  the
composition of our loan portfolio by loan category at the dates indicated.

<TABLE>
<CAPTION>
                                                                         At December 31,
                                ----------------------------------------------------------------------------------------------------
                                       2006                 2005                2004                 2003                 2002
                                ------------------  ------------------  ------------------    ------------------  ------------------
                                  Amount   Percent    Amount   Percent    Amount   Percent      Amount   Percent     Amount  Percent
                                  ------   -------    ------   -------    ------   -------      ------   -------     ------  -------
                                                                                      (Dollars in thousands)
<S>                            <C>         <C>     <C>         <C>     <C>          <C>       <C>        <C>      <C>        <C>
Type of Loans:

Real estate mortgage -
   one-to-four family.........  $207,755    48.31%  $191,634    49.45%  $201,385     58.95%    $201,044   65.67%   $174,764   67.16%
Real estate mortgage -
  multi-family and
  commercial..................     65,848   15.31     53,614    13.84     42,435     12.42       26,563    8.68      11,827    4.55
Commercial business...........      3,724     .87      2,351     0.61      1,635      0.48        1,187    0.39         336    0.13
Consumer:
   Home equity and
     second mortgage..........    127,450   29.63    118,318    30.53     86,772     25.40       73,037   23.86      71,606   27.52
   Passbook or certificate....      1,314     .30      1,071     0.28      1,410      0.41        1,151    0.37       1,129    0.43
   Auto.......................         33    0.01         41     0.01         49      0.02           55    0.02           -    0.00
   Other......................          -       -        465     0.12        503      0.15          527    0.17         542    0.21
                                 --------            -------            --------               --------            --------
     Total consumer loans.....    128,797   29.95    119,895    30.94     88,734     25.98       74,770   24.42      73,277   23.16
                                 --------           --------            --------               --------            --------
Construction..................     23,956    5.57     20,020     5.16      7,423      2.17        2,589    0.84           -    0.00
                                 --------  ------   --------   ------   --------    ------     --------  ------    --------  ------
     Total loans..............    430,080  100.00%   387,514   100.00%   341,612    100.00%     306,153  100.00%    260,204  100.00%
                                 --------  ======   --------   ======   --------    ======     --------  ======    --------  ======
Less:
    Construction loans
       in process.............      8,353              7,659               5,151                  1,065                   -
   Allowance for loan
      losses..................      1,169                878                 750                    702                 637
   Deferred loan (costs)
      and fees, net...........        176                269                 461                    553                 922
                                 --------           --------            --------               --------            --------
                                    9,698              8,806               6,362                  2,320               1,559
                                 --------           --------            --------               --------            --------
     Loans receivable, net....   $420,382           $378,708            $335,250               $303,833            $258,645
                                 ========           ========            ========               ========            ========
</TABLE>

                                       5
<PAGE>

         Loan Maturity Schedule.  The following tables set forth the maturity of
our loan  portfolio at December 31, 2006.  Demand loans,  loans having no stated
maturity,  and overdrafts are shown as due in one year or less. Loans are stated
in the following  tables at  contractual  maturity and actual  maturities  could
differ due to prepayments.

<TABLE>
<CAPTION>
                                                                    At December 31, 2006
                       -------------------------------------------------------------------------------------------------------------
                       Real estate   Real estate
                       mortgage -    Mortgage -                  Home equity
                       one-to-four   Multi-family     Commercial and second      Passbook or
                          family     and commercial   business   mortgage loans  certificate  Auto   Other    Construction   Total
                       ------------- --------------   --------   --------------  -----------  ----   -----    ------------   -----
                                                                       (In thousands)
<S>                   <C>              <C>              <C>        <C>             <C>       <C>    <C>      <C>          <C>
Amounts Due:
Within 1 Year........   $      209      $  19,975        $   837    $   1,051       $ 1,314   $   -  $   -    $23,956      $  47,342
                        ----------      ---------        -------    ---------       -------   -----  -----    -------      ---------

After 1 year:
  1 to 3 years.......        1,253          1,703             28        4,210             -       -      -          -          7,194
  3 to 5 years.......          630          1,322          1,182        9,036             -      33      -          -         12,203
  5 to 10 years......       12,966          3,162          1,241       30,505             -       -      -          -         47,874
  10 to 15 years.....       53,691         10,462             94       39,073             -       -      -          -        103,320
  Over 15 years......      139,006         29,224            342       43,575             -       -      -          -        212,147
                        ----------      ---------        -------    ---------       -------   -----  -----    -------      ---------

Total due
  after one year.....      207,546         45,873          2,887      126,399             -      33      -          -        382,738
                        ----------      ---------        -------     --------       -------   -----  -----    -------      ---------
Total amount due.....   $  207,755      $  65,848        $ 3,724    $ 127,450       $ 1,314   $  33  $   -    $23,956      $ 430,080
                        ==========      =========        =======    =========       =======   =====  =====    =======      =========
</TABLE>

                                       6

<PAGE>

         The  following  table  sets  forth  the  dollar  amount of all loans at
December 31, 2006 that are due after December 31, 2007.

<TABLE>
<CAPTION>
                                                             Floating or
                                             Fixed Rates     Adjustable Rates      Total
                                             -----------     ----------------      -----
                                                               (In thousands)
<S>                                         <C>              <C>               <C>
Real estate mortgage -
   one-to-four family......................   $  185,909       $   21,637        $  207,546
Real estate mortgage -
  multi-family and commercial..............       27,767           18,106            45,873
Commercial business........................        2,322              565             2,887
Consumer:
   Home equity and second mortgage loans...      108,650           17,749           126,399
   Auto....................................           33                -                33
                                              ----------       ----------        ----------
       Total...............................   $  324,681       $   58,057        $  382,738
                                              ==========       ==========        ==========
</TABLE>

         Residential  Mortgage Lending. Our primary lending activity consists of
the  origination  of one- to  four-family  first  mortgage  loans.  Fixed  rate,
conventional  mortgage  loans  are  offered  by the Bank with  repayments  terms
ranging  from 10 years up to 40  years.  One,  three,  five,  seven and ten year
adjustable  rate  mortgages,  or ARM's,  are offered with up to 30 year terms at
rates based upon the one year U.S.  Treasury Bill rate plus a margin.  After the
initial one, three,  five,  seven or ten year term, the Bank's ARM's reset on an
annual basis and,  with the  exception  of the seven year ARM,  have two percent
annual increase caps and a six percent  lifetime  adjustment cap. The seven year
product  has an  initial  first  adjustment  cap of five  percent  (two  percent
thereafter) and a lifetime adjustment cap of six percent. There are no floors on
the rate adjustments.

         The Bank offers applicants the opportunity to "buy-down" their mortgage
loan interest rates by remitting one to three discount  points for  conventional
loans and one point for ARMs.  Borrowers  may also  accelerate  the repayment of
their loan by taking advantage of a bi-weekly payment program.

         Substantially all residential  mortgages include "due on sale" clauses,
which are  provisions  giving the Bank the right to  declare a loan  immediately
payable if the borrower sells or otherwise transfers an interest in the property
to  a  third  party.  Property  appraisals  on  real  estate  securing  one-  to
four-family   residential   loans  are  made  by  state  certified  or  licensed
independent   appraisers  and  are  performed  in  accordance   with  applicable
regulations  and policies.  The Bank requires  title  insurance  policies on all
first mortgage real estate loans originated. Homeowners, liability, fire and, if
applicable, flood insurance policies are also required.

         One- to four-family first mortgage loans in excess of 80% loan-to-value
for single family or detached  residences and 75% on  condominium  units require
private mortgage insurance.  The Bank will originate  residential mortgage loans
up to a maximum of 95% loan-to-value.

         All of the Bank's  residential  mortgage loan products are available to
finance any owner occupied, primary or secondary (e.g., vacation homes), one- to
four-family   residential  dwelling.   Loans  for  non-owner  occupied  one-  to
four-family  residences are originated in accordance with the Bank's  commercial
real estate lending policies as investment properties and are included under the
commercial real estate category in the loan tables set forth herein.

                                       7

<PAGE>

         We do not offer  interest-only  loan  products  because of our concerns
about  the  credit  risks  associated  with  these  products.  We are  currently
exploring other mortgage products,  including reverse mortgages as either a "for
fee"  originator  or as a  portfolio  lender.  We may also seek to  develop  new
delivery  channels  such as  maintaining a presence in the sales office of local
residential builders/developers.

         Consumer  Lending.  The Bank offers  fixed rate home equity loans and a
variable  rate,  revolving home equity line of credit  product,  each with a $10
thousand  minimum and a $250  thousand  maximum  loan amount.  Loan  requests in
excess of $250 thousand are  considered on a  case-by-case  basis.  There are no
fees,  points or closing costs  associated with the application or closing of an
equity  loan or line of  credit.  All  equity  financing  is  secured  by  owner
occupied,  primary  or  secondary,  one- to  four-family  residential  property.
Underwriting standards establish a maximum loan-to-value ratio of 80% for single
family or detached  residences and 75% for condominium  units.  Home equity loan
appraisals may be done by automated  appraisal valuation models for loans with a
60% or less loan-to-value ratio.

         Fixed rate home equity loans.  Fixed rate home equity loans are offered
with  repayment  terms  up to  twenty  years  and are  incrementally  priced  at
thresholds up to 60, 120, 180 and 240 months.  Loan rates are reviewed weekly to
ensure competitive market pricing.  Underwriting  guidelines prescribe a maximum
debt-to-income ratio of forty percent;  however the Bank will approve loans with
higher debt ratios with the  requirement  for a risk premium of  twenty-five  to
fifty basis points above the prevailing rate.

         Variable rate,  revolving home equity lines of credit.  The Bank's home
equity  line of credit is  generally  among the most  competitive  in its market
area.  Lines of credit are priced at the highest  published  Wall Street Journal
Prime Interest Rate minus one-half of one percent,  adjusted monthly with a rate
ceiling  of  eighteen  percent.  Repayment  terms are based  upon a twenty  year
amortization,   requiring   monthly  payments   equivalent  to  1/240th  of  the
outstanding  principal  balance (or $100,  whichever  is greater)  plus  accrued
interest on the unpaid balance for the billing cycle.

         If the account is paid-off and closed via  cancellation of the mortgage
lien then an early termination fee of $300 is charged if closed during the first
twelve billing cycles,  or $200 if closed during the first  twenty-four  billing
cycles. There is no termination fee after twenty-four billing cycles.

         Account loans.  The Bank grants loans to bank customers  collateralized
by deposits in specific types of  savings/time  deposit  accounts.  Money market
deposit  passbook  accounts are not eligible for account loans. A ninety percent
advance rate is provided at pricing  three  percent above the interest rate paid
on the collateral account.

         Consumer lending is generally  considered to involve a higher degree of
credit risk than residential  mortgage  lending.  All consumer loans are secured
with  either a first or second  lien  position on owner  occupied  real  estate.
Account loans are fully  secured.  Consumer  loan  repayment is dependent on the
borrower's  continuing  financial stability and can be adversely affected by job
loss,  divorce,  illness or  personal  bankruptcy.  The  application  of various
federal laws,  including  federal and state  bankruptcy and insolvency laws, may
limit the amount  which can be  recovered  on  consumer  loans in the event of a
default.

         Commercial  Lending.  Though  the Bank has  historically  made loans to
businesses  and  not-for-profit  organizations,  it  formalized  its  commercial
lending  activities  in  2003  with  the  establishment  of  a  Commercial  Loan
Department.

                                       8

<PAGE>

         The majority of  commercial  loans  approved and funded are  commercial
real estate loans for acquisition or refinancing of commercial  properties;  The
Bank also offers a full menu of non-mortgage commercial loan products,  tailored
to serve customer needs, as follows:

          o    lines of credit to finance short term working capital needs;
          o    small business revolving lines of credit;
          o    equipment   acquisition  lines  of  credit  convertible  to  term
               financing;
          o    short  term time  notes;
          o    term financing to finance capital acquisitions; and
          o    business vehicle financing.

         We require  personal  guarantees on all  commercial  loans.  Values are
established  by conforming  real estate  appraisals.  The Bank's  guidelines for
commercial real estate collateral are as follows:

Collateral                           Maximum Loan-to-Value  Maximum Amortization
----------                           ---------------------  --------------------

1-4 family residential (investment)           80%                 20 years

Multi-family (5+ units)                       75%                 20 years

Commercial real estate (owner                 80%                 20 years
   occupied)

Commercial real estate (non-owner             70%                 20 years
  occupied)

         Advance rates for other forms of collateral include the following:

<TABLE>
<CAPTION>
          Collateral                               Maximum Loan-to-Value
          ----------                               ---------------------

<S>                                              <C>
          Commercial equipment                     80% of invoice

          Owned equipment                          50% depreciated book value

          Accounts receivable                      70% of eligible receivables

          Inventory (including work-in-process)    50% of cost

          Liquid collateral                        publicly traded marketable securities, 70%
                                                   U.S. Government securities, 90%
</TABLE>

         The  pricing  for fixed rate  commercial  real  estate  mortgage  loans
provides for rate adjustments after an initial term (primarily five years),  and
at each  anniversary  thereafter,  based on a margin  plus the Bank's  base rate
(Wall Street Journal Prime).

         The  variable  rate loans are  indexed  to the  Bank's  base rate (Wall
Street Journal Prime) and are subject to change as the Bank's base rate changes.

                                       9

<PAGE>

         Unlike  single-family  residential  mortgage loans, which generally are
made on the basis of the  borrower's  ability to make  repayment from his or her
employment and other income,  and which are secured by real property whose value
tends to be more easily  ascertainable,  commercial  loans typically are made on
the basis of the borrower's  ability to make repayment from the cash flow of the
borrower's business. As a result, the availability of funds for the repayment of
commercial loans may be  substantially  dependent on the success of the business
itself and the general economic environment.  Commercial loans, therefore,  have
greater credit risk than  residential  mortgage or consumer  loans. In addition,
commercial  loans generally  result in larger balances to single  borrowers,  or
related groups of borrowers,  than one- to four-family loans. Commercial lending
also generally requires substantially greater evaluation and oversight efforts.

         Construction  Lending. We originate  construction loans for residential
and commercial land acquisition and development, including loans to builders and
developers  to construct  one- to  four-family  residences on  undeveloped  real
estate,  apartment buildings,  and retail,  office,  warehouse and industrial or
other commercial space.  Disbursements are made in accordance with an inspection
report  by an  architect,  or,  in the  case of  construction  loans  up to $500
thousand an inspection  report by an approved  appraiser or Bank personnel.  Our
construction  lending  includes loans for  construction or major  renovations or
improvements  of  borrower-occupied  residences,  however,  the majority of this
portfolio is commercial in nature.

         The Bank's guidelines for construction lending are as follows:

<TABLE>
<CAPTION>
           Collateral                   Maximum Loan-to-Value         Maximum Amortization
           ----------                   ---------------------         --------------------

<S>                                   <C>                           <C>
           Land                         60% - unimproved              1 year
                                        70% - with all municipal      1 year
                                        approvals                     1 year
                                        70% - improved

           Residential & commercial     75% (or 85% of cost)          1 year, with two 6-month
           construction                                               extensions
</TABLE>

         Construction lending is generally considered to involve a higher degree
of  credit  risk  than  residential   mortgage  lending.   If  the  estimate  of
construction  cost  proves to be  inaccurate,  we may be  compelled  to  advance
additional funds to complete the construction with repayment dependent, in part,
on the success of the ultimate  project rather than the ability of a borrower or
guarantor to repay the loan. If we are forced to foreclose on a project prior to
completion,  there is no  assurance  that we will be able to recover  all of the
unpaid portion of the loan. In addition,  we may be required to fund  additional
amounts  to  complete  a  project  and  may  have to hold  the  property  for an
indeterminate period of time.

         Loans to One Borrower.  Under federal law, savings  institutions  have,
subject to certain exemptions, lending limits to one borrower in an amount equal
to the greater of $500 thousand or 15% of the institution's  unimpaired  capital
and surplus.  Accordingly,  as of December  31, 2006,  our loans to one borrower
legal limit was $20.4  million.  However,  the Bank has set an internal limit of
$5.0  million for the  origination  of loans to one borrower  with  authority to
exceed this internal limit vested in the Board of Directors.

         Loans that exceed or approach the internal  loans to one borrower limit
are  fully  reviewed  by the  Board of  Directors  before  being  approved.  For
commercial  loans, the Bank's Commercial Loan Policy requires Board approval for
loans in excess of $2.0 million.  Prior to presentation  to the Board,  the loan
request is  underwritten in accordance with policy and presented to the Officers
Commercial Loan Committee

                                       10

<PAGE>

for its consideration and recommendation to the Board for approval.  The Board's
determination  to grant a credit in excess of the $3.5 million internal limit is
based upon thorough underwriting that clearly demonstrates repayment ability and
collateral  adequacy  and  these  loans  are  approved  only if the  loan can be
originated  on terms which suit the needs of the borrower  without  exposing the
Bank to unacceptable credit risk and interest rate risk.

         At December 31, 2006, our largest single borrower had an aggregate loan
balance of approximately  $6.2 million,  secured by commercial real estate.  Our
second  largest single  borrower had an aggregate loan balance of  approximately
$4.0 million,  secured by commercial real estate. Our third largest borrower had
a $3.6 million  commercial real estate  construction loan. At December 31, 2006,
the loans of these three  borrowers  were current and  performing  in accordance
with the terms of their loan agreements.

         Loan Originations,  Purchases,  Sales, Solicitation and Processing. The
following table shows total loans originated,  purchased, sold and repaid during
the periods indicated.

<TABLE>
<CAPTION>
                                                                     For the Year Ended December 31,
                                                                -------------------------------------------
                                                                    2006           2005           2004
                                                                    ----           ----           ----
                                                                              (In thousands)
<S>                                                           <C>            <C>              <C>
  Loan originations:
    Real estate mortgage - one-to-four family.............      $   37,882     $   19,139       $  33,284
    Real estate mortgage - multi-family and commercial....          17,991         28,301          21,969
    Commercial business...................................           1,340          1,087           2,338
    Construction..........................................          12,997         11,326           2,697
  Consumer:
    Home equity loans and second mortgage.................          41,389         42,347          24,172
    Passbook or certificate...............................           2,050            502             947
    Other.................................................             900         14,479          19,066
                                                                ----------     ----------       ---------
  Total loan originations.................................         114,549        117,181         104,473
                                                                ----------     ----------       ---------
  Loan purchases..........................................               -              -               -
                                                                ----------     ----------       ---------
  Loans sold (mortgage loans).............................             732          2,734           4,245
  Loan principal repayments...............................          71,945         71,053          68,855
                                                                ----------     ----------       ---------
  Total loans sold and principal repayments...............          72,677         73,787          73,100
                                                                ----------     ----------       ---------
Increase (decrease) due to other items....................               -              -               -
                                                                ----------     ----------       ---------
Net increase in loan portfolio............................      $   41,872     $   43,394       $  31,373
                                                                ==========     ==========       =========
</TABLE>

         Our customary  sources of loan  applications  include repeat customers,
referrals from realtors and other  professionals  and "walk-in"  customers.  Our
residential loan originations are largely reputational and advertising driven.

         It is the  policy  of the Bank to adhere  to the  residential  mortgage
underwriting  standards  of the  Mortgage  Partnership  Finance  Program  of the
Federal Home Loan Bank, as well the standards of Fannie Mae and Freddie Mac. The
Bank  generally  sells thirty year fixed rate mortgages that qualify for sale to
the secondary mortgage market in order to lessen its interest rate risk.

         In November  2003,  the Bank entered into an Agreement with the Federal
Home  Loan Bank of New York to sell  residential  mortgages  as a  participating
institution  in its Mortgage  Partnership  Finance  Program.  The Bank agreed to
deliver  loans under a $5.0 million  Master  Commitment  which was  subsequently
increased  in 2006 to  $10.0  million.  Sales  commenced  in 2004  and,  through
December 31,  2006,  $8.0  million had been  delivered  to the MPF  program.  In
addition to an  origination  premium,  the Bank also realizes  income from these
sales through the payment of credit enhancement fees and loan servicing income.

                                       11

<PAGE>

         Aside from  participations,  the Bank did not  purchase  loans from any
third parties in the three years ended  December 31, 2006. At December 31, 2006,
the total outstanding balance of loan participations purchased was $2.4 million,
representing  a  participation  in a commercial  construction  loan with an area
thrift.

         Loan  Approval  Procedures  and  Authority.  Lending  policies and loan
approval  limits  are  approved  and  adopted  by the Board of  Directors.  Loan
committees have been established to administer lending activities as provided by
lending  policies.  Two committee  members may together  approve  non-commercial
loans up to $450  thousand.  A  majority  of  members  is  required  to  approve
non-commercial  loans that contain credit policy exceptions,  with the condition
that either the  president or executive  vice  president be one of the approving
members.  Non-commercial  loans over $450  thousand  require the approval of the
Board of Directors.

         Commercial  lending  approval  authority  is as  follows:  up  to  $500
thousand,  any two of the  following:  a commercial  loan officer and either the
first  vice  president  of  lending,  or the  president  or the  executive  vice
president;  over $500 thousand and up to $1.0 million, any two of the following:
a  commercial  loan  officer or the first  vice  president  of  lending  and the
president  or the  executive  vice  president;  over $1.0 million and up to $3.0
million,  the loan  committee;  and over $3.0 million and up to 10% of the total
assets of the Bank, the Board of Directors.

Asset Quality

         Loan Delinquencies and Collection Procedures.  The borrower is notified
by both  mail  and  telephone  when a loan  is  thirty  days  past  due.  If the
delinquency  continues,  subsequent  efforts are made to contact the  delinquent
borrower and additional  collection notices and letters are sent. When a loan is
ninety days  delinquent,  it is our general  practice to refer it to an attorney
for  repossession  or foreclosure.  All reasonable  attempts are made to collect
from  borrowers  prior to  referral to an attorney  for  collection.  In certain
instances, we may modify the loan or grant a limited moratorium on loan payments
to enable the  borrower  to  reorganize  his or her  financial  affairs,  and we
attempt to work with the borrower to establish a repayment  schedule to cure the
delinquency.

         As to mortgage loans, if a foreclosure  action is taken and the loan is
not  reinstated,  paid in full or  refinanced,  the property is sold at judicial
sale at which we may be the buyer if there are no adequate offers to satisfy the
debt.  Any property  acquired as the result of foreclosure or by deed in lieu of
foreclosure  is  classified  as real estate  owned until it is sold or otherwise
disposed of. When real estate owned is acquired,  it is recorded at the lower of
the unpaid  principal  balance of the related loan or its fair market value less
estimated selling costs. The initial writedown of the property is charged to the
allowance  for loan losses.  Adjustments  to the carrying  value of the property
that result from  subsequent  declines in value are charged to operations in the
period in which the declines occur. At December 31, 2006, we held no real estate
owned.

         Loans are  reviewed  on a regular  basis and are placed on  non-accrual
status when they are more than ninety days  delinquent,  with the exception of a
passbook  loan, the  outstanding  balance of which is collected from the related
passbook  account along with accrued interest and a penalty when the loan is 120
days delinquent.  Loans may be placed on a non-accrual status at any time if, in
the opinion of management,  the  collection of additional  interest is doubtful.
Interest  accrued and unpaid at the time a loan is placed on non-accrual  status
is charged against  interest income.  Subsequent  payments are either applied to
the outstanding

                                       12

<PAGE>

principal balance or recorded as interest income, depending on the assessment of
the  ultimate  collectibility  of  the  loan.  At  December  31,  2006,  we  had
approximately $363 thousand of loans that were held on a non-accrual basis.

         Non-Performing   Assets.  The  following  table  provides   information
regarding our  non-performing  loans. As of each of the dates indicated,  we did
not  have  any  troubled  debt   restructurings  or  accruing  loans  which  are
contractually  past due 90 days or more. As of each of the dates  indicated,  we
did not have any  non-performing  assets  other than the loans  included  in the
table below.  At December 31, 2006,  the allowance for loan losses  totaled $1.2
million,  non-performing loans totaled $363 thousand, and the ratio of allowance
for loan losses to non-performing loans was 322.04%.

<TABLE>
<CAPTION>
                                                                           At December 31,
                                                     ------------------------------------------------------------
                                                       2006        2005        2004        2003        2002
                                                     ---------   --------    --------    ---------   ---------
                                                                       (Dollars in thousands)
<S>                                                 <C>         <C>         <C>         <C>         <C>
  Loans accounted for on a non-accrual basis:

    Real estate mortgage - one-to-four family...      $  362      $  563      $  650      $   708     $  1,030

    Home equity and second mortgage loans.......           1          91         137          200           73
                                                      ------      ------      ------      -------     --------

        Total...................................         363         654         787          908        1,103
                                                      ------      ------      ------      -------     --------

  Total non-performing loans....................         363         654         787          908        1,103
                                                      ------      ------      ------      -------     --------

  Real estate owned.............................           -           -           -            -          138
                                                      ------      ------      ------      -------     --------

  Total non-performing assets...................      $  363      $  654      $  787      $   908     $  1,241
                                                      ======      ======      ======      =======     ========

  Total non-performing loans to total loans.....         0.08%       0.17%       0.23%        0.30%        0.42%
                                                      =======     =======     =======     ========    =========

  Total non-performing loans to total assets....         0.04%       0.08%       0.11%        0.14%        0.18%
                                                      =======     =======     =======     ========    =========

  Total non-performing assets to total assets...         0.04%       0.08%       0.11%        0.14%        0.20%
                                                      =======     =======     =======     ========    =========
</TABLE>

         During the year ended December 31, 2006,  gross interest  income of $22
thousand would have been recorded on loans accounted for on a non-accrual  basis
if those loans had been  current,  and no interest on such loans was included in
income for the year ended December 31, 2006.

         Classified  Assets.  Management,  in  compliance  with Office of Thrift
Supervision guidelines,  has instituted an internal loan review program, whereby
non-performing loans are classified as substandard,  doubtful or loss. It is our
policy  to  review  the  loan   portfolio,   in   accordance   with   regulatory
classification  procedures,  on at  least  a  quarterly  basis.  When a loan  is
classified as  substandard  or doubtful,  management is required to evaluate the
loan for impairment.  When management  classifies a portion of a loan as loss, a
reserve  equal to 100% of the loss amount is required to be  established  or the
loan is to be charged-off.

         An asset is considered "substandard" if it is inadequately protected by
the paying capacity and net worth of the obligor or the collateral  pledged,  if
any.  Substandard assets include those characterized by the distinct possibility
that the Bank will  sustain  some loss if the  deficiencies  are not  corrected.
Assets  classified as "doubtful"  have all of the  weaknesses  inherent in those
classified  substandard,  with the  added  characteristic  that  the  weaknesses
present  make  collection  or  liquidation  in  full  highly   questionable  and
improbable,  on the basis of currently existing facts,  conditions,  and values.
Assets, or portions thereof,

                                       13

<PAGE>

classified as "loss" are  considered  uncollectible  and of so little value that
their continuance as assets without the establishment of a specific loss reserve
is not warranted.  Assets which do not currently expose the Bank to a sufficient
degree of risk to warrant classification in one of the aforementioned categories
but which have credit  deficiencies  or potential  weaknesses are required to be
designated "special mention" by management.

         Management's  classification  of assets is  reviewed  by the Board on a
regular  basis  and by the  regulatory  agencies  as part of  their  examination
process.  An  independent  loan review  firm  performs  periodic  reviews of our
commercial loan  portfolios,  including the verification of commercial loan risk
ratings.  Any disagreements in risk rating assessments require mutual consent as
to the final risk rating.

         The  following  table  discloses  the   classification  of  assets  and
designation  of certain  loans as special  mention as of December 31,  2006.  At
December 31, 2006, all of the classified  assets and special mention  designated
assets were loans.

                                              At December 31,
                               ----------------------------------------------
                                   2006            2005            2004
                                   ----            ----            ----
                                              (In thousands)
Special Mention..........         $ 1,717        $   587          $  218
Substandard..............              49            133             342
Doubtful.................               -              -               -
Loss.....................               -              -               -
                                  -------        -------          ------
  Total..................         $ 1,766        $   720          $  560
                                  =======        =======          ======

         At December 31, 2006, none of the loans classified as "special mention"
and $19 thousand of the loans  classified as  "substandard"  are included  under
non-performing  assets,  as shown in the  table  above as they  were  paying  as
agreed.

         Allowance for Loan Losses. The allowance for loan losses is a valuation
account that reflects our  estimation of the losses in our loan portfolio to the
extent they are both  probable  and  reasonable  to estimate.  The  allowance is
established through provisions for loan losses that are charged to income in the
period they are established. We charge losses on loans against the allowance for
loan  losses when we believe  the  collection  of loan  principal  is  unlikely.
Recoveries on loans previously charged-off are added back to the allowance.

         Management, in determining the allowance for loan losses, considers the
losses  inherent in the loan  portfolio  and changes in the nature and volume of
our  loan  activities,  along  with  general  economic  and real  estate  market
conditions. We utilize a segmented approach which identifies: (1) impaired loans
for which specific  reserves are  established;  (2) classified loans for which a
higher  allowance is established;  and (3) performing  loans for which a general
valuation allowance is established.

         A loan evaluated for impairment is deemed to be impaired when, based on
current information and events, it is probable that we will be unable to collect
all amounts due according to the contractual  terms of the loan  agreement.  All
loans  identified as impaired are evaluated  independently.  We do not aggregate
such loans for  evaluation  purposes.  Payments  received on impaired  loans are
applied first to unpaid interest and then to principal.

         We maintain a loan review system which provides for a systematic review
of the loan portfolios and the early identification of potential impaired loans.
The review of residential real estate and home equity

                                       14

<PAGE>

consumer  loans, as well as other more complex loans, is triggered by identified
evaluation  factors,  including  delinquency  status,  size  of  loan,  type  of
collateral and the financial condition of the borrower. All commercial loans are
evaluated individually for impairment.

         Specific loan loss  allowances are  established  for  identified  loans
based  on a review  of such  information  and/or  appraisals  of the  underlying
collateral. General loan loss allowances are based upon a combination of factors
including,  but not limited to, actual loan loss experience,  composition of the
loan portfolio, current economic conditions and management's judgment. In recent
years, our charge-offs have been low, with $20 thousand  charged-off in 2003 and
none  charged-off  in 2004,  2005 or 2006.  Therefore,  our  provisions for loan
losses have been  reflective of other factors,  including  economic  conditions,
annual growth of the total loan portfolio of 12%, 13% and 11% in 2004,  2005 and
2006,  respectively,  as  well as the  increasing  percentage  of  multi-family,
commercial real estate and commercial loans relative to total loans,  which rose
from 12.9% at  December  31,  2004,  14.45% at  December  31, 2005 and 16.18% at
December  31,  2006.  Higher  provisions  in 2005 and  2006,  relative  to 2004,
reflected the higher amounts of loans classified as "special mention."

         The   estimation  of  the  allowance  for  loan  losses  is  inherently
subjective as it requires  estimates and  assumptions  that are  susceptible  to
significant  revisions as more information becomes available or as future events
change.  Future  additions to the  allowance for loan losses may be necessary if
economic  and other  conditions  in the  future  differ  substantially  from the
current operating environment. In addition, the Office of Thrift Supervision, as
an integral part of its examination  process,  periodically reviews our loan and
foreclosed real estate  portfolios and the related allowance for loan losses and
valuation allowance for foreclosed real estate. The Office of Thrift Supervision
may  require  the  allowance  for loan  losses or the  valuation  allowance  for
foreclosed  real  estate to be  increased  based on its  review  of  information
available  at the time of the  examination,  which would  negatively  affect our
earnings.

                                       15

<PAGE>

         The  following  table  sets  forth  information  with  respect  to  our
allowance for loan losses at the dates indicated.

<TABLE>
<CAPTION>
                                                                      For the Year Ended December 31,
                                                     -------------------------------------------------------------------
                                                        2006          2005         2004          2003         2002
                                                     ----------    ---------    ---------     ---------    ----------
                                                                           (Dollars in thousands)
<S>                                                  <C>           <C>         <C>           <C>          <C>
Allowance balance (at beginning of period)....        $     878     $     750   $ 702         $      637   $     637
                                                       --------      --------   -----         ----------   ---------
Provision for  loan losses....................              291           128          48             85         134
                                                      ---------     ---------   ---------     ----------   ---------
Charge-offs:
  Real estate mortgage - one-to-four family...                -             -           -             20         134
                                                      ---------     ---------   ---------     ----------   ---------
      Total charge-offs.......................                -             -           -             20         134
                                                      ---------     ---------   ---------     ----------   ---------
Recoveries....................................                -             -           -              -           -
                                                      ---------     ---------   ---------     ----------   ---------
Net (charge-offs) recoveries..................                -             -           -            (20)       (134)
                                                      ---------     ---------   ---------     ----------   ---------
Allowance balance (at end of period)..........        $   1,169     $     878   $     750     $      702   $     637
                                                      =========     =========   =========     ==========   =========

Total loans outstanding.......................        $ 430,080     $ 387,514   $ 341,612     $  306,153   $ 260,204
                                                      =========     =========   =========     ==========   =========
Average loans outstanding.....................        $ 400,486     $ 349,758   $ 318,154     $  276,078   $ 255,469
                                                      =========     =========   =========     ==========   =========
Allowance for loan losses as a percent of
   total loans outstanding....................             0.27%         0.23%       0.22%          0.23%        0.24%
                                                      =========     =========   =========     ==========   ==========
Net loans charged off as a percent of
   average loans outstanding..................                -%            -%          -%          0.01%        0.05%
                                                      =========     =========   =========     ==========   ==========
Allowance for loan losses to
   non-performing loans.......................           322.04%       134.25%      95.30%         77.31%       57.75%
                                                      =========     =========   =========     ==========   ==========
</TABLE>

                                       16

<PAGE>

         Allocation of Allowance for Loan Losses. The following table sets forth
the  allocation of our  allowance for loan losses by loan category  based on the
relative  composition of loans in the portfolio and the percent of loans in each
category  to total  loans at the dates  indicated.  The portion of the loan loss
allowance allocated to each loan category does not represent the total available
for future losses which may occur within the loan category since the entire loan
loss  allowance  is  a  valuation  reserve  applicable  to  the  aggregate  loan
portfolio.

<TABLE>
<CAPTION>
                                                                             At December 31,
                                     -----------------------------------------------------------------------------------------------
                                          2006                 2005               2004             2003                  2002
                                     -----------------    -----------------  ---------------  -----------------     ----------------
                                             Percent              Percent           Percent            Percent              Percent
                                             of Loans             of Loans          of Loans           of Loans             Of Loans
                                             to Total             to Total          to Total           to Total             To Total
                                     Amount    Loans      Amount    Loans    Amount   Loans   Amount     Loans      Amount    Loans
                                     ------  ---------    ------  ---------  ------ --------  ------   --------     ------  --------
                                                                          (Dollars in thousands)
<S>                                 <C>      <C>         <C>      <C>       <C>     <C>       <C>        <C>      <C>        <C>
At end of period allocated to:
Real estate mortgage -
   One-to-four family...........     $  238   48.31%      $  435   49.45%    $  442  58.95%    $ 461      65.67%   $  428     67.16%
Real estate mortgage -
   Multi-family and
      commercial...............         746   15.31          122   13.84         93  12.42        61       8.68        29      4.55
Commercial business............           5    0.87            5    0.61          4   0.48         3       0.39         1      0.13
Consumer:
  Home equity and second
      mortgage loans...........         133   29.63          268   30.53        191  25.40       167      23.86       175     27.52
  Passbook or certificate......          39    0.30            2    0.28          3   0.41         3       0.38         3      0.43
  Auto.........................           -    0.01            -    0.01          -   0.01         -       0.02         -         -
  Other........................           -       -            1    0.12          1   0.15         1       0.17         1      0.21
Construction...................          15    5.57           45    5.16         16   2.17         6       0.85         -         -
                                     ------  ------       ------  ------     ------ ------     -----     -------   ------    ------
     Total allowance...........      $1,169  100.00%      $  878  100.00%    $  750 100.00%    $ 702     100.00%   $  637    100.00%
                                     ======  ======       ======  ======     ====== ======     =====     ======    ======    ======
</TABLE>

                                       17
<PAGE>

Securities Portfolio

         General.   Our   deposits   have   traditionally   exceeded   our  loan
originations,   and  we  have  invested  these  excess  deposits   primarily  in
mortgage-backed securities and investment securities.

         Our  investment  policy is designed to foster  earnings and manage cash
flows within prudent interest rate risk and credit risk  guidelines.  Generally,
our investment policy is to invest funds in various categories of securities and
maturities based upon our liquidity needs,  asset/liability management policies,
pledging  requirements,   investment  quality,   marketability  and  performance
objectives.  The Bank's investment policy specifies the  responsibility  for the
investment  portfolio,  asset/liability  management and liquidity management and
establishes an oversight Investment Committee.  The Investment Committee,  which
is  comprised  of at least  one  Board  member  and the  members  of  management
responsible  for investment  decisions and  accountability,  meets  quarterly to
review the portfolio and performance risks and future purchasing strategies. The
investment  officer is  authorized  to purchase  securities to the limit of $5.0
million per trade per issue with the prior approval of the president,  executive
vice president or investment committee.

         All of our securities  carry market risk insofar as increases in market
rates  of  interest  may  cause a  decrease  in  their  market  value.  Prior to
investing,  consideration  is given to the interest  rate,  tax  considerations,
market  volatility,  yield,  settlement  date and maturity of the security,  our
liquidity position,  and anticipated cash needs and sources. The effect that the
proposed security would have on our credit and interest rate risk and risk-based
capital is also considered.

         Federally  chartered  savings  banks  have the  authority  to invest in
various types of liquid  assets.  The  investments  authorized  under the Bank's
investment  policy include U.S.  government and government  agency  obligations,
municipal  securities  (consisting  of  bond  obligations  of  state  and  local
governments),  mortgage-backed  securities,  collateralized mortgage obligations
and corporate  bonds. On a short-term  basis, our investment  policy  authorizes
investment  in  federal  funds,   certificates  of  deposits  and  money  market
investments with insured institutions and with brokerage firms.

         Statement of Financial  Accounting  Standards No. 115,  "Accounting for
Certain Investments in Debt and Equity Securities,"  requires that securities be
categorized as "held to maturity," "trading securities" or "available-for-sale,"
based on  management's  intent as to the ultimate  disposition of each security.
Statement No. 115 allows debt  securities to be classified as "held to maturity"
and reported in financial  statements  at amortized  cost only if the  reporting
entity has the positive intent and ability to hold these securities to maturity.
Securities  that might be sold in response to changes in market  interest rates,
changes in the security's  prepayment risk,  increases in loan demand,  or other
similar factors cannot be classified as "held to maturity."

         We do not currently use or maintain a trading  account.  Securities not
classified as "held to maturity" are classified as  "available-for-sale."  These
securities are reported at fair value,  and  unrealized  gains and losses on the
securities are excluded from earnings and reported,  net of deferred taxes, as a
separate component of equity.

         At  December  31,  2006  our  securities   portfolio  did  not  contain
securities of any issuer, other than the U.S. government or its agencies, having
an  aggregate  book value in excess of 10% of our  equity.  We do not  currently
participate in hedging  programs,  interest rate caps, floors or swaps, or other
activities   involving  the  use  of  off-balance  sheet  derivative   financial
instruments,  however,  we may in the  future  utilize  such

                                       18

<PAGE>

instruments  if we believe it would be beneficial for managing our interest rate
risk.  Further,  we do not purchase  securities  which are not rated  investment
grade.

         Actual  maturities  of  the  securities  held  by us  may  differ  from
contractual  maturities  because  issuers  may have the  right to call or prepay
obligations with or without prepayment  penalties.  At December 31, 2006, we had
$38.9  million of callable  securities,  net of premiums and  discounts,  in our
portfolio. Callable securities pose reinvestment risk because we may not be able
to reinvest the  proceeds  from called  securities  at an  equivalent  or higher
interest rate.

         Mortgage-backed  Securities and  Collateralized  Mortgage  Obligations.
Mortgage-related securities represent a participation interest in a pool of one-
to four-family or multi-family mortgages. We primarily invest in mortgage-backed
securities  secured  by  one- to  four-family  mortgages.  Our  mortgage-related
securities  portfolio  includes  mortgage-backed  securities and  collateralized
mortgage obligations issued by U.S. government agencies or  government-sponsored
entities,  such as  Federal  Home  Loan  Mortgage  Corporation,  the  Government
National Mortgage Association, and the Federal National Mortgage Association. We
do not currently invest in mortgage-related securities issued by non-government,
private corporate issuers.

         The  mortgage  originators  use  intermediaries  (generally  government
agencies  and  government-sponsored  enterprises,  but also a variety of private
corporate issuers) to pool and repackage the participation interests in the form
of  securities,  with  investors such as us receiving the principal and interest
payments on the  mortgages.  Securities  issued or sponsored by U.S.  government
agencies and  government-sponsored  entities are guaranteed as to the payment of
principal and interest to investors. Privately issued non-government,  corporate
issuers' securities  typically offer rates above those paid on government agency
issued or sponsored securities,  but lack the guaranty of those agencies and are
generally less liquid investments.

         Mortgage-backed securities are pass-through securities typically issued
with  stated  principal  amounts,  and the  securities  are  backed  by pools of
mortgages  that have loans with interest  rates that are within a specific range
and  have  varying  maturities.  The  life of a  mortgage-backed  security  thus
approximates the life of the underlying  mortgages.  Mortgage-backed  securities
generally  yield less than the mortgage  loans  underlying the  securities.  The
characteristics  of the  underlying  pool  of  mortgages,  i.e.,  fixed-rate  or
adjustable-rate,  as well as prepayment  risk, are passed on to the  certificate
holder.  Mortgage-backed  securities  are  generally  referred  to  as  mortgage
participation certificates or pass-through certificates.

         Collateralized  mortgage obligations are  mortgage-derivative  products
that  aggregate  pools of mortgages and  mortgage-backed  securities  and create
different  classes  of  securities  with  varying  maturities  and  amortization
schedules as well as a residual  interest with each class having  different risk
characteristics.  The cash  flows from the  underlying  collateral  are  usually
divided into "tranches" or classes whereby  tranches have descending  priorities
with  respect to the  distribution  of principal  and interest  repayment of the
underlying  mortgages and mortgage-backed  securities as opposed to pass through
mortgage-backed  securities  where  cash flows are  distributed  pro rata to all
security  holders.  Unlike  mortgage-backed  securities  from which cash flow is
received and risk is shared pro rata by all securities holders,  cash flows from
the mortgages and mortgage-backed  securities underlying collateralized mortgage
obligations are paid in accordance  with a  predetermined  priority to investors
holding  various  tranches of the  securities or  obligations.  It is the Bank's
policy  to buy  mortgage-derivative  products  that  have no more  risk than the
underlying mortgages.

                                       19

<PAGE>

         The  following  table sets forth the carrying  value of our  securities
portfolio at the dates indicated.

<TABLE>
<CAPTION>
                                                                At December 31,
                                               ----------------------------------------------------
                                                 2006       2005       2004       2003       2002
                                               --------   --------   --------   --------   --------
                                                                 (In thousands)
<S>                                           <C>        <C>        <C>        <C>        <C>
Securities Available for Sale:
-----------------------------

Mutual fund shares .........................   $  2,226   $  2,154   $  2,112   $  1,036   $  1,015

Equity securities ..........................      3,447         50         50         50         50

Mortgage-backed securities .................      1,524        130        149        308        499

U.S. government obligations ................      1,979      2,961        981      1,000     16,065

Obligations of state and political
    subdivisions ...........................     10,155     10,219     10,251     11,650     12,568
                                               --------   --------   --------   --------   --------

      Total securities available for sale ..     19,331     15,514     13,543     14,044     30,197
                                               --------   --------   --------   --------   --------

Investment Securities Held to Maturity:
--------------------------------------

U.S. government obligations ................    168,332    172,263    159,257    151,889     96,495

Obligations of states and political
    subdivisions ...........................      1,595        815        874        933        993
                                               --------   --------   --------   --------   --------

      Total investment securities
           held to maturity ................    169,927    173,078    160,131    152,822     97,488
                                               --------   --------   --------   --------   --------

Mortgage-Backed Securities Held to Maturity:
-------------------------------------------

Government National Mortgage Association ...      5,630      7,454      9,167      9,457     14,668

Federal Home Loan Mortgage Corporation .....     79,822     80,155     60,086     54,533     75,545

Federal National Mortgage Association ......     53,880     58,389     63,913     64,944     56,656

Collateralized mortgage obligations ........      5,148      4,103      5,140      6,333       --
                                               --------   --------   --------   --------   --------

      Total mortgage-backed securities
          held to maturity .................    144,480    150,101    138,306    135,267    146,869
                                               --------   --------   --------   --------   --------

 Total .....................................   $333,738   $338,693   $311,980   $302,133   $274,554
                                               ========   ========   ========   ========   ========
</TABLE>

                                       20

<PAGE>

         The  following  table  sets forth  certain  information  regarding  the
carrying  values,  weighted  average  yields and  maturities  of our  securities
portfolio at December 31, 2006. This table shows contractual maturities and does
not  reflect  repricing  or the effect of  prepayments.  Actual  maturities  may
differ.

<TABLE>
<CAPTION>
                                                                   At December 31, 2006
                           ---------------------------------------------------------------------------------------------------------
                           One Year or Less   One to Five Years  Five to Ten Years  More than Ten Years  Total Investment Securities
                           -----------------  -----------------  -----------------  -------------------  ---------------------------
                           Carrying  Average  Carrying  Average  Carrying  Average    Carrying  Average  Carrying  Average  Market
                            Value     Yield     Value    Yield    Value     Yield      Value     Yield    Value     Yield    Value
                           -------   -------  --------- -------  -------   -------    -------   -------  -------   -------  ------
                                                                  (Dollars in thousands)

<S>                        <C>        <C>    <C>        <C>      <C>       <C>      <C>          <C>    <C>         <C>   <C>
Mutual fund shares          $ 2,226    4.49%  $     -       -%  $      -       -%    $      -        -%  $  2,226    4.49% $  2,226
Equity securities             3,447       -         -       -          -       -            -        -      3,447       -     3,447
U.S. government obligations  57,996    2.82    61,289    4.19    551,026    5.36            -        -    170,311    4.13   168,282
Obligations of states and
   political subdivisions         -       -         -       -      4,214    4.42        7,536     4.43     11,750    4.41    11,786
Government National
   Mortgage Association           8    7.00       184    6.95          -       -        5,438     4.68      5,630    4.75     5,610
Federal Home Loan
   Mortgage Corporation          29    7.39     1,202    4.41     17,394    5.10       62,721     4.96     81,346    4.98    80,503
Federal National Mortgage
   Association                    4    7.00     7,278    5.48     22,804    4.67       23,794     4.73     53,880    4.80    53,190
Collateralized Mortgage
   Obligations                    -       -         -       -      2,595    5.31        2,553     3.54      5,148    4.44     4,978
                            -------           -------            -------             --------            --------          --------
  Total                     $63,710    2.66%  $69,953    4.35%   $98,033    5.13%    $102,042     4.84%  $333,738    4.43% $330,022
                            =======           =======            =======             ========            ========          ========
</TABLE>

                                       21
<PAGE>

Sources of Funds

         General.  Deposits are the Bank's major source of funds for lending and
other  investment  purposes.   In  addition,  we  derive  funds  from  loan  and
mortgage-backed  securities principal repayments, and proceeds from the maturity
and call of investment securities. Loan and securities payments are a relatively
stable source of funds,  while deposit inflows are  significantly  influenced by
pricing  strategies  and  money  market  conditions.  If  required,   borrowings
(principally  from the  Federal  Home Loan Bank) may be used to  supplement  the
amount of funds for lending and funding daily operations. Borrowings may also be
utilized as part of a leverage  strategy in which the borrowings fund securities
purchases.

         Deposits.  Our current deposit  products  include  checking and savings
accounts, certificates of deposit accounts ranging in terms from ninety-one days
to seven years, and individual retirement accounts.  Deposit account terms vary,
primarily as to the required minimum balance amount, the amount of time that the
funds must remain on deposit and the applicable interest rate.

         Deposits are  obtained  primarily  from within New Jersey.  Traditional
methods of  advertising  are used,  or may be used, to attract new customers and
deposits,  including  radio,  billboards,  print media,  direct mail and inserts
included with customer  statements.  We do not currently utilize the services of
deposit  brokers.  Premiums or  incentives  for opening  accounts are  sometimes
offered, and we periodically select particular certificate of deposit maturities
for promotion.  The Bank has a tiered  savings  product that offers a beneficial
interest rate related to predetermined  tiered balance  requirements.  Customers
that  maintain  a minimum  balance  requirement  in the tiered  account  are not
charged a monthly service fee for the savings  account or for checking  accounts
and also  receive  overdraft  protection,  Visa  check  card  and coin  counting
services.

         The  determination  of deposit and certificate  interest rates is based
upon a number of factors,  including:  (1) need for funds based on loan  demand,
current  maturities of deposits and other cash flow needs;  (2) a current survey
of a selected group of  competitors'  rates for similar  products;  (3) economic
conditions;  and (4)  business  plan  projections.  Interest  rates are reviewed
weekly at a meeting of the Asset  Liability  Committee  which consists of senior
management.

         A large  percentage  of our  deposits are in  certificates  of deposit,
which  totaled  50.6% of total  deposits at  December  31,  2006.  The inflow of
certificates  of deposit and the  retention of such  deposits  upon maturity are
significantly  influenced by general interest rates and money market conditions,
making  certificates of deposit  traditionally a more volatile source of funding
than core deposits.  Our liquidity  could be reduced if a significant  amount of
certificates of deposit maturing within a short period of time were not renewed.
To the extent  that such  deposits  do not remain  with us,  they may need to be
replaced with  borrowings  which could increase our cost of funds and negatively
impact our interest rate spread and our  financial  condition.  Historically,  a
significant  portion of the  certificates  of deposit  remain with us after they
mature and we believe  that this will  continue.  At December  31,  2006,  $74.1
million,  or 23.4%, of our certificates of deposit were "jumbo"  certificates of
$100 thousand or more.

                                       22

<PAGE>

         The following tables set forth the distribution of average deposits for
the periods  indicated and the weighted  average nominal interest rates for each
period on each category of deposits presented.

<TABLE>
<CAPTION>
                                                                   For the Year Ended December 31,
                                  --------------------------------------------------------------------------------------------------
                                                  2006                            2005                             2004
                                  --------------------------------- --------------------------------  ------------------------------
                                                           Weighted                         Weighted                        Weighted
                                                 Percent   Average               Percent    Average               Percent   Average
                                      Average    of Total  Nominal   Average     of Total   Nominal    Average    of Total  Nominal
                                      Balance    Deposits    Rate    Balance     Deposits      Rate    Balance    Deposits    Rate
                                      -------    --------  --------  -------     --------   --------   -------    --------  ------
                                                                          (Dollars in thousands)

<S>                                 <C>            <C>       <C>    <C>         <C>        <C>       <C>             <C>      <C>
 Non-interest-bearing demand....     $ 25,653       4.0%      0.00%  $ 15,844    2.58%      0.00%     $ 12,613        2.25%    0.00%
 Interest-bearing demand........       94,204      14.6       0.54    100,241   16.31       0.48        95,251       17.02     0.37
 Money market demand............       99,929      15.5       0.90    114,364   18.61       0.97       119,919       21.42     0.79
 Savings and club...............      108,435      16.8       0.75    105,004   17.09       0.85       107,191       19.15     0.69
 Certificates of deposit........      315,613      49.1       3.95    279,026   45.41       2.97       224,750       40.16     2.39
                                     --------     -----              --------   -----                 --------       -----

    Total deposits..............     $643,834    100.00%      2.28%  $614,479  100.00%      1.75%     $559,724      100.00%    1.32%
                                     ========    ======              ========  ======                 ========      ======
</TABLE>

                                       23

<PAGE>

         The following table sets forth  certificates  of deposit  classified by
interest rate as of the dates indicated.


                                                  At December 31,
                                        ------------------------------------
        Interest Rate                    2006           2005         2004
        -------------                    ----           ----         ----
                                                  (In thousands)

        0.00-1.99%                      $  1,536      $ 11,096     $123,439

        2.00-2.99%                        20,655        68,197       26,887

        3.00-3.99%                        71,116       152,801       47,611

        4.00-4.99%                       172,509        82,228       40,451

        5.00% and above                   50,844             -            -
                                        --------      --------     --------

         Total                          $316,660      $314,322     $238,388
                                        ========      ========     ========

         The   following   table  sets  forth  the  amount  and   maturities  of
certificates of deposit at December 31, 2006.

<TABLE>
<CAPTION>
                                              Amount Due
                  -------------------------------------------------------------------------
                Within                                                   After
                1 year   1-2 years  2-3 years  3-4 years  4-5 years     5 years      Total
                ------   ---------  ---------  ---------  ---------     -------      -----
                                           (In thousands)
<S>         <C>         <C>        <C>        <C>         <C>          <C>       <C>
Interest Rate
-------------

0.00-1.99%   $    847    $     -    $     -    $   675     $    5       $     9   $  1,536


2.00-2.99%     15,388      5,267          -          -          -             -     20,655


3.00-3.99%     40,167     21,917      9,032          -          -             -     71,116


4.00-4.99%    135,740      5,646      7,739     23,040        223           121    172,509


5.00-5.99%     45,672         93        213          -      4,866             -     50,844
             --------    -------    -------    -------     ------       -------   --------

 Total       $237,814    $32,923    $16,984    $23,715     $5,094       $   130   $316,660
             ========    =======    =======    =======     ======       =======   ========
</TABLE>


         The following table shows the amount of certificates of deposit of $100
thousand or more by time remaining until maturity as of the dates indicated.


                                                          At December 31, 2006
                                                          --------------------
Maturity Period                                                (In thousands)
---------------
Within three months...............................              $  21,169
Three through six months..........................                 19,857
Six through twelve months.........................                 14,006
Over twelve months................................                 19,102
                                                                ---------
                                                                $  74,134
                                                                =========

                                       24
<PAGE>
         Borrowings.  To supplement deposits as a source of funds for lending or
investment,  the Bank may borrow funds in the form of advances  from the Federal
Home Loan Bank. We traditionally have enjoyed cash flows from deposit activities
that were sufficient to meet our day-to-day funding  obligations and in the past
only occasionally  used our overnight line of credit or borrowing  facility with
the Federal Home Loan Bank. In the third quarter of 2005,  however,  we used our
overnight line of credit at the Federal Home Loan Bank to meet daily operations.
In the fourth quarter of 2005, we took a five year advance from the Federal Home
Loan Bank to meet the strong demand for loans.  At December 31, 2006, the Bank's
borrowing limit with the Federal Home Loan Bank was $159.3 million.


         At December 31, 2006, the outstanding  balance of the five year advance
from the Federal Home Loan Bank totaled $7.9  million.  This advance has a fixed
interest rate of 4.49% and matures as follows:

         Twelve Months Ending December 31,
         ---------------------------------
                                                         (In thousands)
         2007.....................................         $  1,923
         2008.....................................            2,011
         2009.....................................            2,087
         2010.....................................            1,842
                                                           --------
                Total.............................         $  7,863
                                                           ========


         Short-term  Federal Home Loan Bank  advances  generally  have  original
maturities  of less than one year.  Advances from the Federal Home Loan Bank are
typically  secured  by the  Federal  Home Loan Bank  stock and by other  assets,
mainly securities which are obligations of or guaranteed by the U.S. government.
Additional  information regarding our borrowings is included under Note 9 to the
consolidated financial statements.

Subsidiary Activity

         Roma Financial  Corporation has no direct  subsidiaries other than Roma
Bank.  Roma Bank has two  wholly-owned  subsidiaries:  Roma  Capital  Investment
Corporation,  which  was  incorporated  under  New  Jersey  law  in  2004  as an
investment  subsidiary,  and  General  Abstract  & Title  Agency,  a New  Jersey
corporation.

         Roma Capital Investment Corporation is an investment subsidiary and its
sole activity is to hold investment securities. Its total assets at December 31,
2006 were $251.5 million. Its net income for 2006 was $6.8 million.

         General Abstract & Title Agency sells title  insurance,  performs title
searches and provides real estate  settlement  and closing  services.  Its total
assets at December 31, 2006 were $537 thousand.  Its operating  revenue for 2006
consisted  of $1.4  million  in  premiums  earned  from the  placement  of title
insurance and related title  company  services.  Its net income for 2006 was $56
thousand.

         Roma Financial  Corporation is currently in the process of forming a de
novo savings bank for which it will be the 60%  majority  stockholder.  The bank
will be called  RomAsia  Bank and is expected to open for business in the fourth
quarter of 2007.

                                       25

<PAGE>

                           REGULATION AND SUPERVISION

         Set forth below is a brief  description of certain laws which relate to
the regulation of the Company and the Bank. The description  does not purport to
be complete and is qualified in its entirety by reference to applicable laws and
regulations.

Holding Company Regulation

         General.  The Company is a unitary  savings and loan  holding  company,
subject to  regulation  and  supervision  by the OTS. In  addition,  the OTS has
enforcement   authority  over  the  Company  and  any  non-savings   institution
subsidiaries.  This permits the OTS to restrict or prohibit  activities  that it
determines  to be a serious  risk to Roma  Bank.  This  regulation  is  intended
primarily  for the  protection  of the  depositors  and not for the  benefit  of
stockholders of the Company.

         Activities  Restrictions.  As a grandfathered  unitary savings and loan
holding  company  under the GLB Act, the Company is generally not subject to any
restrictions on its business activities or those of its non-savings  institution
subsidiaries.  However, if the Company were to fail to meet the Qualified Thrift
Lender Test, then it would become subject to the activities  restrictions of the
Home Owners' Loan Act applicable to multiple holding companies.  See "Regulation
of the Bank -- Qualified Thrift Lender Test."

         If the Company were to acquire control of another savings  association,
it would  lose  its  grandfathered  status  under  the GLB Act and its  business
activities  would  be  restricted  to  certain   activities   specified  by  OTS
regulation,  which include performing  services and holding properties used by a
savings institution  subsidiary,  certain activities  authorized for savings and
loan  holding  companies  as  of  March  5,  1987,  and  nonbanking   activities
permissible for bank holding companies  pursuant to the Bank Holding Company Act
of 1956 (the "BHC Act") or authorized for financial holding  companies  pursuant
to the GLB Act.  Furthermore,  no company  may  acquire  control of the  Company
unless the acquiring  company was a unitary  savings and loan holding company on
May 4, 1999 (or became a unitary savings and loan holding company pursuant to an
application pending as of that date) or the acquiring company is only engaged in
activities that are permitted for multiple savings and loan holding companies or
for financial holding companies under the BHC Act as amended by the GLB Act.

         Mergers and Acquisitions. The Company must obtain approval from the OTS
before acquiring more than 5% of the voting stock of another savings institution
or savings and loan holding  company or acquiring such an institution or holding
company by merger,  consolidation  or purchase of its assets.  In  evaluating an
application  for Roma  Financial  Corporation  to  acquire  control of a savings
institution,  the OTS would consider the financial and managerial  resources and
future prospects of Roma Financial  Corporation and the target institution,  the
effect of the  acquisition on the risk to the insurance  funds,  the convenience
and the needs of the community and competitive factors.

         The USA Patriot Act. In response to the events of  September  11, 2001,
the Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, or the USA Patriot Act, was signed
into law on October 26, 2001.  The USA Patriot Act gives the federal  government
new powers to address  terrorist  threats  through  enhanced  domestic  security
measures,  expanded  surveillance  powers,  increased  information  sharing  and
broadened anti-money laundering  requirements.  By way of amendments to the Bank
Secrecy  Act,  Title III of the USA  Patriot  Act  takes  measures  intended  to
encourage information sharing among bank regulatory agencies and law enforcement
bodies. Further,  certain provisions of Title III impose affirmative obligations
on a broad range of financial institutions,  including banks, thrifts,  brokers,
dealers,  credit unions,  money transfer agents and parties registered under the
Commodity Exchange Act.

                                       26
<PAGE>

         Among other requirements,  Title III of the USA Patriot Act imposes the
following requirements with respect to financial institutions:

         o     Pursuant  to  Section  352,  all  financial   institutions   must
establish anti-money  laundering programs that include, at minimum: (i) internal
policies,  procedures,  and controls; (ii) specific designation of an anti-money
laundering  compliance  officer;  (iii) ongoing employee training programs;  and
(iv) an independent audit function to test the anti-money laundering program.

         o     Section  326  authorizes  the  Secretary  of  the  Department  of
Treasury,  in conjunction with other bank regulators,  to issue regulations that
provide for minimum  standards  with respect to customer  identification  at the
time new accounts are opened.

         o     Section  312  requires  financial  institutions  that  establish,
maintain,  administer  or manage  private  banking  accounts  or  correspondence
accounts  in  the  United  States  for   non-United   States  persons  or  their
representatives  (including foreign  individuals  visiting the United States) to
establish appropriate,  specific,  and, where necessary,  enhanced due diligence
policies,   procedures  and  controls   designed  to  detect  and  report  money
laundering.

         o     Effective   December  25,  2001,   financial   institutions   are
prohibited   from   establishing,   maintaining,   administering   or   managing
correspondent accounts for foreign shell banks (foreign banks that do not have a
physical presence in any country), and will be subject to certain record keeping
obligations with respect to correspondent accounts of foreign banks.

         o     Bank  regulators  are  directed to  consider a holding  company's
effectiveness  in combating money  laundering when ruling on Federal Reserve Act
and Bank Merger Act applications.

         Sarbanes-Oxley  Act of 2002. The Sarbanes-Oxley Act of 2002 (the "Act")
implemented  legislative  reforms  intended to address  corporate and accounting
fraud  and  improve  public  company  reporting.  The  Securities  and  Exchange
Commission (the "SEC") has  promulgated new regulations  pursuant to the Act and
may continue to propose  additional  implementing  or clarifying  regulations as
necessary in  furtherance of the Act. The passage of the Act by Congress and the
implementation of new regulations by the SEC subject  publicly-traded  companies
to  additional  and  more  cumbersome  reporting   regulations  and  disclosure.
Compliance with the Act and corresponding regulations may increase the Company's
expenses.

Regulation of the Bank

         General. As a federally chartered savings bank with deposits insured by
the FDIC,  the Bank is  subject  to  extensive  regulation  by the OTS and FDIC.
Lending  activities  and other  investments  must comply with  federal and state
statutory  and  regulatory  requirements.  The Bank is also  subject  to reserve
requirements of the Federal Reserve System.  Federal  regulation and supervision
establishes a comprehensive  framework of activities in which an institution can
engage and is intended  primarily for the  protection  of the Deposit  Insurance
Fund  and  depositors.  The  regulatory  structure  also  gives  the  regulatory
authorities  extensive  discretion  in  connection  with their  supervisory  and
enforcement activities and examination policies, including policies with respect
to the  classification  of assets and the  establishment  of adequate  loan loss
reserves for regulatory purposes.

         The  OTS  regularly   examines  the  Bank  and  prepares   reports  for
consideration by the Bank's Board of Directors on deficiencies, if any, found in
the Bank's operations. The Bank's relationship with its depositors and borrowers
is also  regulated by federal and state law,  especially  in such matters as the
ownership of savings  accounts  and the form and content of the Bank's  mortgage
documents.

                                       27
<PAGE>

         The Bank must file reports with the OTS  concerning  its activities and
financial condition, and must obtain regulatory approvals prior to entering into
certain  transactions  such as mergers with or  acquisitions  of other financial
institutions.  Any change in such  regulations,  whether by the OTS, the FDIC or
the United States  Congress,  could have a material  adverse impact on the Bank,
the Company, and their operations.

         Deposit Insurance. The Bank's deposits are insured to applicable limits
by the Federal  Deposit  Insurance  Company.  Although the FDIC is authorized to
assess  premiums  under a  risk-based  system for such deposit  insurance,  most
insured  depository  institutions have not been required to pay premiums for the
last ten years.  The Federal  Deposit  Insurance  Reform Act of 2005,  which was
signed into law on February 15, 2006, has resulted in significant changes to the
federal  deposit  insurance  program:  (i)  effective  March 31, 2006,  the Bank
Insurance  Fund (which  formerly  insured the deposits of banks) and the Savings
Association  Insurance  Fund (which  formerly  insured  the  deposits of savings
associations  like the Bank) were merged into a new  combined  fund,  called the
Deposit  Insurance  Fund;  (ii) the  current  $100  thousand  deposit  insurance
coverage  will be indexed  for  inflation  (with  adjustments  every five years,
commencing January 1, 2011); and (iii) deposit insurance coverage for retirement
accounts  has  been  increased  to $250  thousand  per  participant  subject  to
adjustment  for inflation.  The FDIC has been given greater  latitude in setting
the assessment rates for insured depository institutions, which could be used to
impose minimum assessments.

         The  FDIC  is  authorized  to set the  reserve  ratio  for the  Deposit
Insurance Fund annually at between 1.15% and 1.5% of estimated insured deposits.
If the Deposit  Insurance  Fund's reserves exceed the designated  reserve ratio,
the FDIC is required to pay out all or, if the reserve  ratio is less than 1.5%,
a portion of the excess as a dividend to insured  depository  institutions based
on the  percentage  of insured  deposits  held on December 31, 1996 adjusted for
subsequently  paid  premiums.  Insured  depository  institutions  that  were  in
existence on December 31, 1996 and paid assessments prior to that date (or their
successors) are entitled to a one-time credit against future  assessments  based
on their past  contributions  to the BIF or the  Savings  Association  Insurance
Fund.

         Pursuant to the Reform Act,  the FDIC has  determined  to maintain  the
designated  reserve ratio at its current 1.25%.  The FDIC has also adopted a new
risk-based  premium system that provides for quarterly  assessments  based on an
insured  institution's  ranking  in one of four risk  categories  based on their
examination  ratings and capital  ratios.  Beginning  in 2007,  well-capitalized
institutions  with the CAMELS ratings of 1 or 2 will be grouped in Risk Category
I and will be assessed  for deposit  insurance at an annual rate of between five
and seven basis points with the assessment rate for an individual institution to
be  determined  according  to a  formula  based  on a  weighted  average  of the
institution's  individual  CAMEL  component  ratings plus either five  financial
ratios or the  average  ratings  of its  long-term  debt.  Institutions  in Risk
Categories  II,  III and IV will be  assessed  at annual  rates of 10, 28 and 43
basis points, respectively.

         In  addition,  all  FDIC-insured   institutions  are  required  to  pay
assessments  to the  FDIC to fund  interest  payments  on  bonds  issued  by the
Financing Corporation ("FICO"), an agency of the Federal government  established
to recapitalize  the predecessor to the SAIF. The FICO assessment  rates,  which
are determined  quarterly,  averaged 0.0128% of insured deposits in fiscal 2006.
These assessments will continue until the FICO bonds mature in 2017.

         Regulatory  Capital  Requirements.   OTS  capital  regulations  require
savings institutions to meet three capital standards: (1) tangible capital equal
to 1.5% of adjusted  total  assets,  (2) Tier 1, or "core,"  capital equal to at
least 4% (3% if the institution  has received the highest  rating,  "composite 1
CAMELS,"

                                       28
<PAGE>

on its most recent  examination)  of adjusted  total assets,  and (3) risk-based
capital equal to 8% of total risk-weighted assets.

         Tangible capital is defined as core capital less all intangible  assets
(including  supervisory  goodwill),  less certain mortgage  servicing rights and
less certain investments. Core capital is defined as common stockholders' equity
(including  retained  earnings),  noncumulative  perpetual  preferred  stock and
minority interests in the equity accounts of consolidated subsidiaries,  certain
nonwithdrawable accounts and pledged deposits of mutual savings associations and
qualifying supervisory goodwill,  less nonqualifying  intangible assets, certain
mortgage servicing rights,  certain  investments and unrealized gains and losses
on certain available-for-sale securities.

         The risk-based capital standard for savings  institutions  requires the
maintenance of total  risk-based  capital (which is defined as core capital plus
supplementary  capital)  of  8%  of  risk-weighted  assets.  The  components  of
supplementary capital include, among other items, cumulative perpetual preferred
stock,  perpetual  subordinated debt, mandatory  convertible  subordinated debt,
intermediate-term  preferred  stock,  and the portion of the  allowance for loan
losses not  designated  for  specific  loan  losses (up to a maximum of 1.25% of
risk-weighted  assets) and up to 45% of unrealized  gains on equity  securities.
Overall,  supplementary  capital is limited to 100% of core  capital.  A savings
association  must calculate its  risk-weighted  assets by multiplying each asset
and  off-balance  sheet item by various risk factors as  determined  by the OTS,
which range from 0% for cash to 100% for  delinquent  loans,  property  acquired
through foreclosure, commercial loans, and other assets.

         Dividend and Other Capital  Distribution  Limitations.  The OTS imposes
various  restrictions or requirements on the ability of savings  institutions to
make capital distributions including cash dividends.

         A  savings  association  that is a  subsidiary  of a  savings  and loan
holding company, such as the Bank, must file an application or a notice with the
OTS at least 30 days before making a capital distribution. A savings association
is not  required  to file  an  application  for  permission  to  make a  capital
distribution  and need only file a notice if the following  conditions  are met:
(1) it is eligible for expedited  treatment under OTS regulations,  (2) it would
remain adequately  capitalized after the distribution,  (3) the annual amount of
its capital distributions does not exceed net income for that year to date added
to  retained  net  income  for  the two  preceding  years,  and (4) the  capital
distribution  would not violate any  agreements  between the OTS and the savings
association  or any OTS  regulations.  Any  other  situation  would  require  an
application to the OTS.

         In addition, the OTS could prohibit a proposed capital distribution if,
after  making the  distribution,  which  would  otherwise  be  permitted  by the
regulation,  the OTS determines that the distribution would constitute an unsafe
or unsound practice.

         A federal  savings  institution  is  prohibited  from  making a capital
distribution if, after making the distribution,  the institution would be unable
to meet any one of its  minimum  regulatory  capital  requirements.  Further,  a
federal savings institution cannot distribute  regulatory capital that is needed
for its liquidation account.

         Qualified  Thrift  Lender  Test.  Savings   institutions  must  meet  a
qualified  thrift  lender  ("QTL")  test or they become  subject to the business
activity  restrictions  and branching  rules  applicable to national  banks.  To
qualify as a QTL, a savings  institution  must  either (i) be deemed a "domestic
building and loan association" under the Internal Revenue Code by maintaining at
least 60% of its total  assets in  specified  types of assets,  including  cash,
certain  government  securities,  loans  secured by and other assets  related to

                                       29
<PAGE>

residential real property,  educational loans and investments in premises of the
institution or (ii) satisfy the statutory QTL test set forth in the Home Owners'
Loan Act by  maintaining  at least  65% of its  "portfolio  assets"  in  certain
"Qualified Thrift  Investments"  (defined to include  residential  mortgages and
related equity investments,  certain mortgage-related securities, small business
loans,  student  loans and  credit  card  loans,  and 50% of  certain  community
development loans). For purposes of the statutory QTL test, portfolio assets are
defined  as  total  assets  minus  intangible  assets,   property  used  by  the
institution  in conducting  its  business,  and liquid assets up to 20% of total
assets.  A savings  institution  must  maintain its status as a QTL on a monthly
basis in at least nine out of every 12 months. As of December 31, 2006, the Bank
was in compliance with its QTL requirement.

         Federal Home Loan Bank System.  The Bank is a member of the FHLB of New
York,  which is one of 12  regional  FHLBs that  administer  the home  financing
credit  function  of  savings  associations.  Each FHLB  serves as a reserve  or
central bank for its members within its assigned region.  It is funded primarily
from  proceeds  derived from the sale of  consolidated  obligations  of the FHLB
System.  It makes loans to members (i.e.,  advances) in accordance with policies
and procedures established by the Board of Directors of the FHLB.

         As a member, the Bank is required to purchase and maintain stock in the
FHLB of New York in an amount equal to the greater of 1% of its aggregate unpaid
residential  mortgage loans, home purchase  contracts or similar  obligations at
the beginning of each year, or 5% of its outstanding advances.

         Federal  Reserve  System.  The  Federal  Reserve  System  requires  all
depository  institutions to maintain  non-interest bearing reserves at specified
levels against their transaction accounts (primarily checking, NOW and Super NOW
checking  accounts) and non-personal time deposits.  The balances  maintained to
meet the reserve  requirements imposed by the Federal Reserve System may be used
to satisfy the liquidity  requirements  that are imposed by the OTS. At December
31, 2006, the Bank was in compliance with these requirements.

Item 1A. Risk Factors

The following is a summary of the material risks related to an investment in the
Company's securities.

We realize income primarily from the difference between interest earned on loans
and  investments  and interest paid on deposits and  borrowings,  and changes in
interest  rates may  adversely  affect  our net  interest  rate  spread  and net
interest margin, which will hurt our earnings.

         We derive our income mainly from the difference or "spread" between the
interest  earned on loans,  securities and other  interest-earning  assets,  and
interest paid on deposits, borrowings and other interest-bearing liabilities. In
general,  the larger the spread, the more we earn. When market rates of interest
change,  the  interest  we receive on our assets and the  interest we pay on our
liabilities  will  fluctuate.  This can cause  decreases  in our  spread and can
adversely affect our income.

         Market interest rates were in recent years at historically  low levels.
However,  beginning in June 2004,  the U.S.  Federal  Reserve has  increased its
target  federal funds rate.  While the federal  funds rate and other  short-term
market  interest  rates,  which we use as a guide to our deposit  pricing,  have
increased,  intermediate- and long-term market interest rates, which we use as a
guide to our loan pricing, have not increased proportionately. This has led to a
"flattening" of the market yield curve,  which has even  "inverted"  recently as
short-term  rates have exceeded  long-term rates over an  intermediate  maturity
horizon. The flat yield curve has hurt our interest rate spread and net interest
margin because the interest rates we

                                       30
<PAGE>

pay on our deposits have repriced upwards faster than the interest rates that we
earn on our loans and investments. If short-term interest rates continue to rise
so that the yield curve remains  relatively  flat or inverts  further,  we would
expect that our net interest  spread and net interest  margin would  continue to
compress, which would hurt our net interest income.

         Interest  rates also  affect how much money we can lend.  For  example,
when interest rates rise, the cost of borrowing  increases and loan originations
tend to decrease. In addition,  changes in interest rates can affect the average
life of loans and investment securities. A reduction in interest rates generally
results in increased  prepayments of loans and  mortgage-backed  securities,  as
borrowers  refinance  their debt in order to reduce their  borrowing  cost. This
causes  reinvestment  risk,  because  we  generally  are not  able  to  reinvest
prepayments  at rates that are  comparable to the rates we earned on the prepaid
loans or securities.  A falling rate  environment  would result in a decrease in
rates we pay on deposits  and  borrowings,  but the  decrease in the cost of our
funds may not be as great as the  decrease  in the yields on our loan  portfolio
and mortgage-backed securities and loan portfolios. This could cause a narrowing
of our net  interest  rate spread and could  cause a decrease  in our  earnings.
Changes in market  interest  rates could also reduce the value of our  financial
assets.  If we are  unsuccessful  in managing the effects of changes in interest
rates, our financial condition and results of operations could suffer.

If we experience  loan losses in excess of our  allowance,  our earnings will be
adversely affected.

         The risk of credit  losses on loans  varies with,  among other  things,
general economic  conditions,  the type of loan being made, the creditworthiness
of the borrower  over the term of the loan and, in the case of a  collateralized
loan, the value and  marketability  of the  collateral for the loan.  Management
maintains an  allowance  for loan losses based upon  historical  experience,  an
evaluation of economic  conditions and regular reviews of delinquencies and loan
portfolio quality. If management's  assumptions and judgments about the ultimate
collectibility of the loan portfolio prove to be incorrect and the allowance for
loan losses is  inadequate to absorb future losses or if we are required to make
material  additions  to  the  allowance,  our  earnings  and  capital  could  be
significantly and adversely affected. As of December 31, 2006, our allowance for
loan  losses  was $1.2  million,  representing  0.27% of  outstanding  loans and
322.04% of non-performing loans.

A portion of our total loan portfolio  consists of commercial real estate loans,
commercial  business loans and  construction  loans,  and we intend to grow this
part of the loan  portfolio.  The repayment risk related to these types of loans
is  considered  to be  greater  than the  risk  related  to one- to  four-family
residential loans.

         At December 31, 2006,  our loan  portfolio  included  $65.8  million of
commercial  and  multi-family  real estate loans and $3.7 million of  commercial
business loans,  together  amounting to 16.2% of our total loan  portfolio,  and
$24.0  million  of  construction  loans,  representing  5.6% of our  total  loan
portfolio.  Unlike single family residential mortgage loans, which generally are
made on the basis of the  borrower's  ability to make  repayment from his or her
employment and other income,  and which are secured by real property with values
that tend to be more easily  ascertainable,  commercial loans typically are made
on the basis of the  borrower's  ability to make repayment from the cash flow of
the borrowers' business. The repayment of construction loans for residential and
commercial  land  acquisition and  development,  including loans to builders and
developers,  is dependent,  in part, on the success of the ultimate construction
project.  In addition,  commercial loans and construction  loans to builders and
developers  generally result in larger balances to single borrowers,  or related
groups of borrowers, than one- to four-family loans.

                                       31
<PAGE>

         In addition,  the growth of our aggregate  commercial and  multi-family
real  estate and  commercial  business  loans and  construction  loans from $6.9
million at December 31, 2001 to $81.5  million at December 31, 2006 means that a
large portion of this  portfolio is  unseasoned.  Relatively  new loans that are
"unseasoned,"  are considered to pose a potentially  greater repayment risk than
more mature  loans  because  they  generally  do not have  sufficient  repayment
history to indicate the likelihood of repayment in accordance with their terms.

Strong   competition   within  our   market   area  may  limit  our  growth  and
profitability.

         Competition  in the  banking  and  financial  services  industry in New
Jersey is intense.  Many of our competitors have substantially greater resources
and  lending  limits  than we do and  offer  services  that we do not or  cannot
provide. Price competition for loans might result in us originating fewer loans,
or earning less on our loans, and price competition for deposits might result in
a decrease in our total  deposits or higher rates on our  deposits.  Our deposit
market share in Mercer County,  New Jersey,  where seven of our nine offices are
located,  was 7.2% at June 30,  2006,  the latest  date for which  market  share
information is available.

Our business is  geographically  concentrated  in New Jersey,  and a downturn in
conditions in the state could have an adverse impact on our profitability.

         A substantial  majority of our loans are to individuals  and businesses
in New  Jersey.  Any  decline in the  economy of the state could have an adverse
impact on our earnings.  Adverse changes in the economy may also have a negative
effect on the ability of our borrowers to make timely repayments of their loans.
Additionally,  because  we  have a  significant  amount  of real  estate  loans,
decreases  in local  real  estate  values  could  adversely  affect the value of
property  used as  collateral.  If we are  required to  liquidate a  significant
amount of  collateral  during a period of reduced real estate  values to satisfy
the debt, our earnings and capital could be adversely affected.

We  intend to  actively  consider  opportunities  for de novo  branching.  Costs
related to expansion plans may negatively impact earnings in future periods.

         We opened our new main office in Robbinsville, New Jersey in 2005 and a
new  branch  office in  Plumsted,  New Jersey in the first  quarter of 2007.  We
intend to continue expanding our branch network. Expenses related to the planned
expansion of our  operations  through de novo  branching or the  acquisition  of
branches or other  financial  institutions  could  adversely  impact earnings in
future periods.

We operate in a highly  regulated  environment and may be adversely  affected by
changes in laws and regulations.

         We are subject to extensive regulation,  supervision and examination by
the Office of Thrift Supervision,  our chartering authority,  and by the Federal
Deposit  Insurance  Corporation,  as insurer  of our  deposits.  As a  federally
chartered holding company, the Company is subject to regulation and oversight by
the Office of Thrift  Supervision.  Such regulation and  supervision  govern the
activities in which an institution and its holding  companies may engage and are
intended  primarily for the  protection of the  insurance  fund and  depositors.
Regulatory  authorities  have  extensive  discretion  in  connection  with their
supervisory and enforcement activities, including the imposition of restrictions
on  the  operation  of an  institution,  the  classification  of  assets  by the
institution and the adequacy of an institution's  allowance for loan losses. Any
change in such  regulation  and  oversight,  whether  in the form of  regulatory
policy,  regulations,  or  legislation,  including  changes  in the  regulations
governing mutual holding  companies,  could have a material impact on us and our
operations.

                                       32
<PAGE>

Item 1B. Unresolved Staff Comments
----------------------------------

Not applicable.

Item 2.  Properties
-------------------

         At December  31, 2006,  our net  investment  in property and  equipment
totaled  $30.7  million,   including  land  held  for  future   development  and
construction in progress.

         The  following  table sets forth the  location  of our main  office and
branch  offices,  the year each office was opened and the net book value of each
office.

<TABLE>
<CAPTION>
                                           Year Facility      Leased or    Net Book Value at
     Office Location                       Opened             Owned        December 31, 2006
     ---------------                       ------             -----        -----------------
                                                                            (In thousands)

     <S>                                 <C>                                <C>
     Corporate Headquarters and            2005                Owned          $14,542
     Washington Town Center Office:
     2300 Route 33
     Robbinsville, NJ

     Chambersburg Office:                  1962                Owned              309
     485 Hamilton Avenue
     Trenton, NJ

     Mercerville Office:                   1971                Owned              815
     500 Route 33
     Mercerville, NJ

     Yardville Office:                     1984                Owned              842
     4500 South Broad Street
     Yardville, NJ

     West Trenton Office:                  1986                Owned              959
     79 West Upper Ferry Road
     West Trenton, NJ

     Hamilton Center City Office:          1991                Owned            4,037
     1155 Whitehorse-Mercerville Road
     Hamilton, NJ

     South Trenton Office:                 1993                Owned              745
     1450 South Broad Street
     Trenton, NJ

     Florence Township Office:             2003                Owned            2,523
     2150 Route 130 North
     Florence Township
     Burlington, NJ

     Plumsted Office:                      2007                Owned            2,351
     400 Route 539
     Cream Ridge,  NJ
</TABLE>

Item 3.  Legal Proceedings
--------------------------

         Roma Bank,  from time to time, is a party to routine  litigation  which
arises in the  normal  course of  business,  such as  claims to  enforce  liens,
condemnation  proceedings  on properties  in which we hold  security  interests,
claims  involving  the making and servicing of real  property  loans,  and other
issues incident to our business.  There were no lawsuits  pending or known to be
contemplated  against Roma  Financial  Corporation  or Roma Bank at December 31,
2006 that would have a material effect on our operations or income.

                                       33
<PAGE>

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

         No matters  were  submitted  to a vote of security  holders  during the
fourth quarter of the fiscal year ended December 31, 2006.

                                     PART II

Item 5. Market for the Registrant's  Common Equity,  Related Stockholder Matters
--------------------------------------------------------------------------------
and Issuer Purchases of Equity Securities
-----------------------------------------

         Upon  completion of the Company's  minority  stock  offering in July of
2006, the Company's  common stock  commenced  trading on The NASDAQ Stock Market
under the symbol "ROMA". The table below shows the reported high and low closing
prices of common  stock during the periods  indicated.  The  quotations  reflect
inter-dealer prices,  without retail mark-up,  mark-down,  or commission and may
not represent actual transactions.

                      2006                   High         Low      Dividends
----------------------------------------------------------------------------

Quarter ended September 30, 2006 (1)        $ 15.94     $ 10.00      N/A

Quarter ended December 31, 2006             $ 16.56     $ 14.63      N/A

(1)  Minority stock offering  completed July 11, 2006 and trading commenced July
     12, 2006.

         Declarations of dividends by the Board of Directors  depend on a number
of factors,  including investment  opportunities,  growth objectives,  financial
condition,  profitability,  tax  considerations,  minimum capital  requirements,
regulatory  limitations,  stock  market  characteristics  and  general  economic
conditions.  The timing,  frequency and amount of dividends is determined by the
Board.

         As of March 1, 2007,  there were  approximately  4,222  shareholders of
record of the  Company's  common stock,  including  brokerage  firms,  banks and
registered  clearing  agents acting as nominees for an  indeterminate  number of
beneficial owners.

         The  Company  did not  have any  stock  repurchases  in the year  ended
December 31, 2006.

         The Company's  common stock commenced  trading during the third quarter
of the year ended December 31, 2006. A stock  performance graph is not presented
in this Form 10-K in light of this short trading history.

                                       34

<PAGE>

Item 6.  Selected Financial Data
--------------------------------

         The following  financial  information and other data in this section is
derived from the Company's audited consolidated  financial statements and should
be read together therewith.

<TABLE>
<CAPTION>
                                                                              At December 31,
                                                   ---------------------------------------------------------------------
                                                       2006          2005           2004           2003          2002
                                                       ----          ----           ----           ----          ----
                                                                              (In thousands)
<S>                                               <C>            <C>            <C>           <C>           <C>
Balance Sheet Data:

   Total assets                                     $ 876,081      $ 797,760      $ 711,815     $ 671,728     $ 629.460
   Loans receivable, net                              420,382        378,708        335,250       303,833       258,645
   Mortgage backed securities
       held to maturity                               144,480        150,101        138,306       135,267       146,869
   Securities available for sale                       19,331         15,514         13,543        14,044        30,197
   Investment securities held to maturity             169,927        173,078        160,131       152,822        97,488
   Cash and cash equivalents                           64,701         28,089         19,944        28,218        65,418
   Goodwill                                               572            572              -             -             -
   Deposits                                           625,972        643,813        576,300       544,605       510,016
   Federal Home Loan Bank borrowings                    7,863          9,702              -             -             -
   Total stockholders' equity                         234,654        138,658        131,393       123,818       116,125
</TABLE>

<TABLE>
<CAPTION>
                                                                              At December 31,
                                                   -----------------------------------------------------------------------
                                                       2006          2005           2004           2003          2002
                                                       ----          ----           ----           ----          ----
                                                                              (In thousands)
<S>                                                  <C>            <C>            <C>           <C>           <C>
Summary of Operations:

   Interest income                                    $40,869        $34,632        $31,148       $31,430       $35,740
   Interest expense                                    15,190         10,901          7,392         8,287        12,181
                                                      -------        -------        -------       -------       -------
        Net interest income                            25,679         23,731         23,756        23,143        23,559
   Provision for loan losses                              291            128             48            85           134
                                                      -------        -------        -------       -------       -------
   Net interest income after provision for
        loan losses                                    25,388         23,603         23,708        23,058        23,425
   Non-interest income                                  3,460          2,916          1,571         1,630           791
   Non-interest expense                                21,206         15,132         13,411        12,544        11,806
                                                      -------        -------        -------       -------       -------
   Income before income taxes                           7,642         11,387         11,868        12,144        12,410
   Provisions for income taxes                          2,394          3,852          4,256         4,437         4,703
                                                      -------        -------        -------       -------       -------
   Net income                                         $ 5,248        $ 7,535        $ 7,612       $ 7,707       $ 7,707
                                                      =======        =======        =======       =======       =======
   Net income per share -
        basic and diluted                              $0.19           $0.33        $  0.33         $0.34       $  0.34
                                                      =======        =======        =======       =======       =======
   Weighted number of common
        shares outstanding                             27,305         22,584         22,584        22,584        22,584
                                                      =======        =======        =======       =======       =======
</TABLE>

                                       35


<PAGE>

<TABLE>
<CAPTION>
                                                                             At December 31,
                                                -----------------------------------------------------------------------
                                                    2006           2005           2004           2003          2002
                                                    ----           ----           ----           ----          ----
                                                                             (In thousands)
<S>                                                <C>             <C>            <C>           <C>           <C>
Performance Ratios:
   Return on average assets (net income
        divided by average total assets                0.62%          0.99%          1.10%         1.18%         1.27%
   Return on average equity (net income
        divided by average equity)                     2.89           5.55           6.02          6.38          6.87
   Net interest rate spread                           2.780           3.09           3.44          3.48          3.79
   Net interest margin on average
        interest-earning assets                        3.28           3.36           3.65          3.74          4.04
   Average interest-earning assets to average
        interest-bearing liabilities                   1.24x          1.17x          1.19x         1.19x         1.20x
   Efficiency ratio (Non-interest expense
        divided by the sum of net interest
        income and non-interest income)               72.78%         55.71%         51.69%        49.06%        48.23%
   Non-interest expense to average assets              2.52           1.91           1.85          1.81          2.10

Asset Quality Ratios:
   Non-performing loans to total loans                 0.08           0.17           0.23          0.30          0.42
   Non-performing assets to total assets               0.04           0.08           0.11          0.14          0.20
   Net charge-offs to average loans
         outstanding                                      -              -              -          0.01          0.05
   Allowance for loan losses to total loans            0.27           0.23           0.22          0.23          0.24
   Allowance for loan losses to
         non-performing loans                        322.04         134.25          95.30         77.31         57.75

Capital Ratios:
   Average equity to average assets
         (average equity divided by average
         total assets                                 21.53          17.90          18.33         18.45         18.49
   Equity to assets at period end                     26.78          17.38          18.46         18.43         18.45
   Tangible equity to tangible assets
        at period end                                 26.91          17.22          18.45         18.42         18.43

Number of Offices:
   Offices                                                9              8              7             7             6

</TABLE>

                                       36
<PAGE>


Item 7. Management's  Discussion and Analysis of Financial Condition and Results
--------------------------------------------------------------------------------
        of Operations
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General

         This  discussion  and analysis  reflects Roma  Financial  Corporation's
consolidated  financial  statements  and other  relevant  statistical  data.  We
include it to enhance your understanding of our financial  condition and results
of operation.  You should read the  information  in this section in  conjunction
with Roma Financial  Corporation's  consolidated  financial statements and notes
thereto contained in this Annual Report on Form 10-K, and other statistical data
provided herein.

Overview


         Financial   Condition  and  Results  of   Operations.   Roma  Financial
Corporation's results of operations depend primarily on its net interest income.
Net interest income is the difference between the interest income we earn on our
interest-earnings  assets  and  the  interest  we pay  on  our  interest-bearing
liabilities.  It is a function of the average  balances of loans and investments
versus average  balances of deposits and borrowed  funds  outstanding in any one
period  and the yields  earned on those  loans and  investments  and the cost of
those deposits and borrowed funds.

         Our interest-earning assets primarily consist of loans, mortgage-backed
securities  and  investment  securities.  At  December  31,  2006,  total  loans
comprised 48% of our total assets and our securities  portfolio comprised 38% of
our total assets. The most significant change in  interest-earnings  assets from
the prior year was a $50.7  million  14.5%  increase in the  average  balance of
loans  receivable,  net from $349.8 million for 2005 to $400.5 million for 2006.
At year end, loans  receivable,  net totaled $420.4 million.  During 2006, a key
goal of management was growth in the loan portfolio,  particularly  multi-family
and  commercial  real estate loans which  increased by 22.8% to $65.8 million at
year end from $53.6 million at the end of 2005.

         Proceeds  of  approximately  $96.1  million  from  our  initial  public
offering completed in July 2006 funded the growth in the loan portfolio.  To the
extent  not yet  deployed  into  loans and other  assets,  some of the  offering
proceeds were invested into short-term  interest bearing deposits,  contributing
to a $36.6 million, or 130.2% increase in cash and cash equivalents.

         Our  interest-bearing  liabilities consist primarily of retail deposits
and  borrowings  from the Federal  Home Loan Bank of New York.  At December  31,
2006,  our total  deposits were $626.0  million,  compared to $643.8  million at
December 31, 2005.  Our  borrowings  from the Federal Home Loan Bank of New York
were $7.9 million compared to $9.7 million a year earlier. The $17.8 million, or
2.7% decrease in deposits was primarily due to $15.0 million of deposits used by
depositors to purchase  stock in our initial  public  offering.  Management  was
challenged  during the year to balance the rate of  attrition  while  containing
increases  in the  cost  of  funds.  Management  was  successful  in  increasing
non-interest  bearing  checking  deposits  during the year,  which totaled $25.1
million at December  31,  2006  compared to $20.7  million a year  earlier.  The
decrease in total deposits  occurred  primarily in the savings and club accounts
category which fell by $22.2 million.  The nominal decrease in Federal Home Loan
Bank advances resulted from scheduled repayments of principal.

         Our net interest  income  increased  7.6% to $25.7 million in 2006 from
$23.7 million in 2005. The net interest spread  decreased to 2.80% from 3.09% in
2005,  as the  average  cost of  interest-bearing  liabilities  climbed 61 basis
points,  while the average  yield on  interest-earning  assets  improved only 32
basis points.  For 2006,  the average cost of interest  bearing-liabilities  was
2.42% and the average yield on interest-earning assets was 5.22%. Total interest
income  increased  17.6%  due to a 10.8%  increase  in the  average  balance  of

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interest-earning  assets and a 32 basis point increase in average  yield,  while
total  interest  expense  increased  36.9%,  primarily  due to a 61 basis  point
increase in the  average  cost of  interest-bearing  liabilities.  Net  interest
income  increased  due  to the  reinvestment  of  maturing  securities  and  the
deployment of initial public offering  proceeds into higher yielding  securities
and loans as well as into cash and cash equivalents  offering higher  prevailing
yields resulting from increased short term interest rates.

         Our results of operations are also influenced by our provision for loan
losses,  non-interest  income  and  non-interest  expense.  Non-interest  income
includes  service fees and  charges,  including  income  generated by the Bank's
retail branch network and operations, income from  bank-owned-life-insurance and
title insurance revenue from our title agency subsidiary.  Non-interest  expense
includes salaries and employee  benefits,  occupancy  expenses and other general
and administrative  expenses.  Non-interest expense increased by $6.1 million or
41.7% to $21.2 million in 2006  compared to $15.1 million in 2005.  The increase
was due  primarily to a $2.4  million  increase in salaries  and  benefits,  net
occupancy  costs and  equipment  related  to the  opening  of our new  corporate
headquarters  in September of 2005, and a $3.4 million  contribution to the Roma
Bank  Community  Foundation,  Inc. (the  "Foundation")  in  connection  with the
initial public offering.

         Net income for the year ended  December  31, 2006 was $5.2  million,  a
decrease of $2.3 million or 30.7% from $7.5 million for the year ended  December
31, 2005. The decrease related  primarily to the contribution to the Foundation.
The  Foundation  was  established  to further our  long-term  commitment  to the
communities that we serve. This one time, substantial, funding of the Foundation
will help to ensure that community reinvestment previously done by the Bank will
continue for years to come through the Foundation.

         Total assets  increased  $78.3 million or 9.8%, to $876.1  million from
$797.8 million at December 31, 2005. Cash and cash  equivalents  increased $36.6
million from year to year due to the added  liquidity and  availability of funds
from the proceeds from our initial  public  offering.  Securities  available for
sale  increased $3.8 million to $19.3 million from $15.5 million the prior year.
Investments  and  mortgage-backed  securities  held to maturity  decreased  $3.2
million  and  $5.6  million,  respectively,  reflecting  the  deployment  of the
proceeds from  maturating  securities and monthly  principal  payments on loans,
into loan originations, and reinvestment in short term overnight investments.

         Stockholders' equity increased $96.0 million or 69.2% to $234.7 million
primarily due to net proceeds of $91.3 million from our initial public offering,
offset by a reduction  in equity for  unallocated  shares  held by the  employee
stock  ownership  plan.  The  decrease of $900  thousand in other  comprehensive
income  was  primarily  due to an after  tax  charge of $800  thousand  from the
initial  application  of FASB 158, which  recognizes  prior  unrecorded  pension
transition and service costs and unrealized losses.

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         Business Strategy.  Our current business strategy is to seek growth and
improve profitability by:

          o    Increasing the volume of loan  originations  and the size of loan
               portfolio relative to our securities portfolio;
          o    Increasing  originations  of  multi-family  and  commercial  real
               estate loans, construction loans, and commercial business loans;
          o    Building core banking  business  through  internal  growth and de
               novo  branching,  as  well as de novo  banking,  and  judiciously
               considering expansion through acquisition opportunities.
          o    Developing  a sales  culture by training and  encouraging  branch
               personnel  to  promote  existing  products  and  services  to our
               customers; and
          o    Maintaining high asset quality.

         Historically,   our  deposits  have  exceeded  our   residential   loan
originations,  and we have invested  those deposits  primarily in  mortgage-back
securities and investment securities. Over the last few years we have focused on
building a non-residential loan portfolio.

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Critical Accounting Policies


         Our  accounting  policies  are  integral to  understanding  the results
reported  and  are  described  in  detail  in Note 1 to  consolidated  financial
statements  contained  in this  Annual  Report on Form 10-K.  In  preparing  the
consolidated financial statements,  management is required to make estimates and
assumptions that affect the reported amounts of assets and liabilities as of the
dates of the consolidated  statements of financial  condition and income for the
periods  then  ended.  Actual  results  could  differ  significantly  from those
estimates.  Material estimates that are particularly  susceptible to significant
changes relate to the determination of the allowance for loan losses.


         Allowance for Loan Losses. The allowance for loan losses represents our
best estimate of losses known and inherent in our loan  portfolio  that are both
probable and reasonable to estimate.  In determining the amount of the allowance
for loan  losses,  we consider  the losses  inherent in our loan  portfolio  and
changes  in the nature and  volume of our loan  activities,  along with  general
economic  and real estate  market  conditions.  We utilize a segmented  approach
which   identifies:   (1)  impaired  loans  for  which  specific   reserves  are
established;  (2) classified  loans for which a higher allowance is established;
and (3) performing loans for which a general valuation allowance is established.
We maintain a loan review system which  provides for a systematic  review of the
loan portfolios and the early  identification  of impaired loans.  The review of
residential  real estate and home equity  consumer  loans, as well as other more
complex  loans,  is  triggered  by  identified  evaluation  factors,   including
delinquency status, size of loan, type of collateral and the financial condition
of the borrower. All commercial loans are evaluated individually for impairment.
Specific loan loss  allowances  are  established  for impaired  loans based on a
review of such  information  and/or  appraisals  of the  underlying  collateral.
General loan loss allowances are based upon a combination of factors  including,
but not  limited  to,  actual  loan  loss  experience,  composition  of the loan
portfolio, current economic conditions and management's judgment.

         Although  specific and general loan loss  allowances are established in
accordance  with  management's  best estimate,  actual losses are dependent upon
future events,  and as such, further provisions for loan losses may be necessary
in order to increase the level of the  allowance  for loan losses.  For example,
our  evaluation  of the allowance  includes  consideration  of current  economic
conditions,  and a change in  economic  conditions  could  reduce the ability of
borrowers  to make  timely  repayments  of their  loans.  This  could  result in
increased  delinquencies and increased  non-performing loans, and thus a need to
make increased provisions to the allowance for loan losses. Any such increase in
provisions  would  result in a reduction to our  earnings.  A change in economic
conditions could also adversely  affect the value of properties  collateralizing
real estate  loans,  resulting in increased  charges  against the  allowance and
reduced recoveries,  and require increased  provisions to the allowance for loan
losses.  Furthermore,  a  change  in the  composition,  or  growth,  of our loan
portfolio could result in the need for additional provisions.

Comparison of Financial Condition at December 31, 2006 and December 31, 2005

         General.  Our total assets  increased  $78.3  million or 9.8% to $876.1
million at December  31, 2006  compared to $797.8  million at December 31, 2005,
primarily  due to increases in cash and cash  equivalents  and loan  receivable,
net.

         Cash and Cash  Equivalents.  Cash and cash equivalents  increased $36.6
million or 130.2% to $64.7  million at December  31, 2006 from $28.1  million at
December 31, 2005.  Cash  received in our initial  public  offering in excess of
funds  utilized for loan  originations  was primarily  invested in cash and cash
equivalents.

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         Securities  available  for  sale.  The  carrying  value  of  securities
available for sale  increased $3.8 million or 24.5% to $19.3 million at December
31, 2006, compared to $15.5 million the prior year.

         Investment  securities held to maturity.  Investment securities held to
maturity decreased $3.2 million,  or 1.8% to $169.9 million at December 31, 2006
from $173.1 million at December 31, 2005. The reduction in the investments  held
to maturity portfolio resulted from scheduled  maturities that were used to fund
loan growth. The weighted average yield of the portfolio was 3.66%.

         Mortgage-backed securities. Mortgage-backed securities held to maturity
decreased $5.6 million,  or 3.7% to $144.5 million at December 31, 2006 compared
to $150.1  million in the prior year.  Management  utilized  the cash flows from
monthly   principal   and  interest   payments  and   maturities  to  fund  loan
originations,  and to the extent needed, deposit outflow.  During this period of
flat to inverted yield curves management  invested in short duration  securities
with some callable  features.  The average yield on mortgage-back  securities at
December 31, 2006 was 4.85%.

         Loans.  Loans  receivable,  net,  increased $41.7 million,  or 11.0% to
$420.4  million at December  31, 2006 from $378.7  million at December 31, 2005.
Conventional  one-to-four  family mortgage loans increased $16.2 million or 8.5%
to $207.8  million at  December  31, 2006  compared to $191.6  million the prior
year. Loans in this category increased primarily because of a mortgage promotion
in March.  Demand for mortgage  loans  continued  to be slow during  2006.  Home
equity and consumer loans  increased $8.9 million,  or 7.4% to $128.8 million at
December 31, 2006 from $119.9 million at December 31, 2005. Equity loan activity
slowed  in 2006  compared  to very  robust  activity  in  2005.  Commercial  and
multi-family  mortgages,  construction  and  commercial  loans  increased in the
aggregate  $17.5  million,  or 23.0% to $93.5  million  at  December  31,  2006,
compared to $76.0 million at December 31, 2005.

         Premises and equipment.  Premises and equipment increased $2.0 million,
or 7.0% to $30.7  million at  December  31, 2006  compared  to $28.7  million at
December 31, 2005. The increase resulted primarily from the cost associated with
completing a new branch,  located in Ocean  County,  New Jersey.  That  location
opened in January  2007,  bringing our total  network to eight branch  locations
plus our Robbinsville main office.

         Bank Owned Life Insurance. Bank-owned-life-insurance ("BOLI") increased
$600  thousand to $16.2  million at December 31, 2006  compared to $15.6 million
the prior year.  There were no additional  investments  in BOLI policies  during
2006.

         Other  assets.  Other  assets  increased  $1.6 million or 57.1% to $4.4
million at December 31, 2006, compared to $2.8 million a year earlier, primarily
because of the  increase  in  deferred  tax assets  attributable  to the initial
application  of SFAS 158.  SFAS 158  requires  the  Company to  recognize  prior
pension  transition  and  service  costs  and  unrealized  losses  that  had not
previously been recorded. Deferred tax assets also were increased because of the
carry forward charitable  contribution deduction relating to the contribution to
the Foundation.

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         Deposits. Deposits decreased $17.8 million or 2.8% to $626.0 million at
December  31,  2006,  compared to $643.8  million at  December  31,  2005.  This
decrease was primarily due to depositors  utilizing $15.0 million of deposits at
Roma Bank to purchase stock in our initial public offering. Non-interest bearing
deposits increased $4.4 million, or 21.2% to $25.1 million at December 31, 2006,
compared to $20.7 million in the prior year.  Interest bearing checking accounts
decreased  $2.4 million or 2.4% to $98.3 million at December 31, 2006,  compared
to $100.7 million a year earlier.  The weighted  average  interest rate of total
checking accounts, including both interest bearing and non-interest bearing, was
0.42% at December 31, 2006,  compared to 0.45% the prior year.  Savings and club
accounts  decreased  $22.2  million or 10.7% to $185.9  million at December  31,
2006,  compared to $208.1 million a year earlier.  The weighted average interest
rate on savings and club  accounts  decreased to 0.82%  compared to 0.91% in the
prior year.  Certificates of deposit  increased $2.4 million,  or 0.7% to $316.7
million at December 31, 2006,  compared to $314.3  million at December 31, 2005.
The weighted average interest rate on certificates of deposit increased 82 basis
points to 4.30% at December 31,2006 compared to 3.48% at the prior year end. The
weighted  average  nominal rate on total  deposits  increased 45 basis points to
2.53% compared to 2.08% in the prior year. Fierce competition in our marketplace
for core  deposits  contributed  to the  decrease in savings and club  accounts.
Management  has  marketed  special  certificates  of deposits  with  promotional
interest rates typically with terms of 91 days, six and ten months, and one year
maturities to retain and attract new deposits The  challenge  for  management in
2006 was to balance the rate of attrition for all deposits  categories against a
significant increase in the cost of funds.

         Federal  Home Loan Bank.  Federal  Home Loan Bank of New York  advances
decreased  $1.8 million to $7.9  million at December 31, 2006,  compared to $9.7
million in the prior year, as a result of scheduled monthly principal payments.

         Other  Liabilities.  Other  liabilities  increased $1.8 million to $5.3
million at December 31, 2006 compared to $3.5 million at December 31, 2005.  The
increase was primarily due to a $1.3 million  liability  recorded to reflect the
initial  application  of FASB 158, which  recognizes  prior  unrecorded  pension
transition and service costs and unrealized losses.


         Stockholders'  equity.  Stockholders' equity increased $96.0 million or
69.2% to $234.7  million at December 31, 2006 compared to $138.7  million in the
prior year due  primarily to net proceeds from the initial  public  offering and
net income of $5.2  million.  The  decrease  in other  comprehensive  income was
primarily due to the initial application of FASB 158 of $800 thousand.


Comparison  of  Operating  Results  for the Years  Ended  December  31, 2006 and
December 31, 2005


         General.  Net  income  for the year ended  December  31,  2006 was $5.2
million,  a decrease of $2.3  million or 30.7%,  from $7.5  million for the year
ended  December 31, 2005.  The  decrease  related  primarily to the $3.4 million
contribution  that the  Company  made to the  Foundation.  The  increase of $1.9
million in net  interest  income and $544  thousand in  non-interest  income was
offset by a $6.1 million  increase in non-interest  expense,  which included the
contribution to the Foundation.

         Net Interest Income. Net interest income increased $1.9 million or 7.6%
to $25.7 million for the year ended December 31, 2006, compared to $23.7 million
in the prior year.  Our net  interest  rate spread  decreased 29 basis points to
2.80%, compared to 3.09% the prior year. Despite a 32 basis point improvement in
the average yield on interest-earning assets, which increased to 5.22% this year
from 4.90% last year,  the net interest rate spread  decreased due to a 61 basis
point increase in the average cost of interest-bearing liabilities to 2.42% this
year compared to 1.81% last year.

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         Interest Income.  Total interest income increased $6.2 million or 17.6%
to $40.9 million,  compared to $34.6 million in the prior year. The  improvement
in  interest   income  resulted  from  an  increase  in  the  yield  on  average
interest-earning  assets  as well  as an  increase  in the  average  balance  of
interest-earning assets.

         Interest  income on loans  increased  $4.1  million,  or 19.8% to $24.7
million for the year ended  December 31, 2006,  compared to $20.7 million in the
prior year.  The increase  resulted  from both an increase of 27 basis points in
average loan yield to 6.18% and an increase in the average balance of loans from
$349.8 million to $400.5 million, an increase of $50.7 million year over year.

         Interest  income  on   mortgage-backed   securities  held  to  maturity
increased  minimally  and was $7.2  million  both years.  The  average  yield on
mortgage-back  securities  held to maturity  increased  10 basis points to 4.85%
compared to 4.75% the prior year.  This was offset by a decrease of $2.9 million
in the average balance of mortgage-backed  securities held to maturity to $147.7
million, compared to $150.6 million the prior year.

         Interest income on investment securities available for sale and held to
maturity  increased $900 thousand,  or 13.8%, to $7.0 million,  compared to $6.1
million in the prior year. The average yield on investment  securities available
for sale and held to maturity  increased 28 basis  points to 3.62%,  compared to
3.34% the prior year. The average balance of investment securities available for
sale and held to maturity increased $9.1 million to $192.5 million,  at December
31, 2006, compared to $183.4 million the prior year.

         Interest income on other interest-earning assets increased $1.3 million
or 190.0% to $2.0  million,  compared to $700  thousand  in the prior year.  The
increase was primarily  due to the  investment of a portion of the proceeds from
our initial public  offering in  interest-bearing  deposits in other banks.  The
average  balance of other  interest-earning  assets  increased  $19.3 million or
85.4% to $41.9  million for 2006,  compared to $22.6  million in the prior year.
The increase was also due to a 171 basis point  increase in the average yield on
other  interest-earning  assets to 4.73%  compared to 3.02% last year  resulting
from an increase in short term interest rates.

         Interest  Expense.  Total  interest  expense  increased $4.3 million or
39.3% to $15.2 million for the year ended  December 31, 2006,  compared to $10.9
million for the year ended  December 31, 2005.  The  increase  resulted  from an
increase  in the  average  cost of  interest-bearing  liabilities  as well as an
increase in the  balance of average  interest-bearing  liabilities  from year to
year. The average cost of interest-bearing liabilities increased 61 basis points
to 2.42% for the year ended  December  31,  2006  compared to 1.81% in the prior
year.  The  average  balance of  interest-bearing  liabilities  increased  $26.4
million or 4.4% to $628.7  million in 2006,  compared  to $602.3  million in the
prior year.

         Interest  expense on deposits  increased $4.0 million or 36.9% to $14.7
million in 2006,  compared to $10.7  million in 2005.  Average  interest-bearing
demand deposits decreased $6.0 million to $94.2 million while their average cost
increased 6 basis points to 0.54%.  Average savings and club accounts  decreased
$11.0 million or 5.0% to $208.4 million  compared to $219.4 million in the prior
year. The average cost of savings and club accounts  decreased 9 basis points to
0.82 The average balance of  certificates of deposit  increased $36.6 million or
13.1% to $315.6 million,  compared to $279.0 million the prior year. The average
cost of  interest-bearing  certificates of deposit  increased 98 basis points to
3.95%,  compared to 2.97% the prior year.  Management was challenged during 2006
to balance the rate of attrition  for all deposit  categories  while  mitigating
increases in the cost of funds.

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         Interest  expense  on  Federal  Home  Loan  Bank of New  York  (FHLBNY)
advances increased $300 thousand or 203.1% to $500 thousand during 2006 compared
to $200 thousand in the prior year.  The average  balance of advances  increased
$6.9 million to $10.5  million,  compared to $3.7  million in 2005.  The average
cost of borrowings  increased 27 basis points to 4.57%  compared to 4.30% in the
prior year.  In September of 2005 the Company  borrowed  $10.0  million from the
FHLBNY in the form of a five year advance at a rate of 4.49%. During both years,
management  utilized overnight and short-term lines of credit with the FHLBNY to
meet liquidity  needs.  There were no outstanding  borrowings  under the line of
credit at year end for either 2006 or 2005.

         Provision  for Loan  Losses.  We charge  provisions  for loan losses to
operations at a level  required to reflect  credit losses in the loan  portfolio
that are both probable and  reasonable to estimate.  Management,  in determining
the  allowance  for loan  losses,  considers  the  losses  inherent  in the loan
portfolio  and  changes in the nature and volume of our loan  activities,  along
with the  general  economic  and real  estate  market  conditions.  We utilize a
three-tier  approach:  (1) identification of impaired loans and establishment of
specific  allowances  on such  loans;  (2)  establishment  of general  valuation
allowances  in the  remainder  of our loan  portfolio,  and (3) we  establish  a
specific loan loss allowance for an impaired loan based on  delinquency  status,
size of loan, type of collateral  and/or appraisal of the underlying  collateral
and  financial  condition of the  borrower.  Management  bases general loan loss
allowances on a  combination  of factors  including,  but not limited to, actual
loan loss experience, composition of loan portfolio, current economic conditions
and   management's   judgment.   The  overall  growth  in  the  loan  portfolio,
particularly  in commercial  loans,  is expected to result in higher  provisions
going forward.

         The provision for loan loses  increased  $163 thousand to $291 thousand
for the year ended  December  31, 2006  compared to $128  thousand for the prior
year.  During  2006 total loans  increased  $42.6  million to $430.1  million at
December 31, 2006,  compared to $387.5 million the prior year. The allowance for
loan losses was 0.27% of total loans at December 31, 2006,  compared to 0.23% at
December 31, 2005.

         Management  assesses  the  allowance  for loan  losses  monthly.  While
management uses available  information to recognize losses on loans,  additional
loan loss provisions in the future may be necessary based on changes in economic
conditions.  In  addition,  regulatory  agencies  as an  integral  part of their
periodic examinations review the allowance for loan losses and may require us to
record additional provisions based on their judgment of information available to
them at the time of their examination.

         Non-Interest  Income.  Non-interest  income  includes  fees and service
charges  generated  from loans and  deposits,  commissions  on the sale of title
insurance  policies,  bank-owned-life-insurance  income, and other miscellaneous
income.  Non-interest income increased $600 thousand or 18.7% to $3.5 million in
2006 compared to $2.9 million in the prior year.

         Commissions  on  sales  of  title  insurance  policies  increased  $200
thousand to $1.4 million in 2006.  The Bank  acquired  General  Abstract & Title
Agency in March 2005.

         Fees and service  charges on deposits  increased $300 thousand or 81.2%
to $700  thousand in 2006. In August of 2006 the Bank  implemented  an overdraft
protection program. This program was principally responsible for the increase.

         Fees and  service  charges on loans  increased  minimally  from year to
year, primarily related to an overall increase in our loan portfolio.

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         Other non-interest  income increased $37 thousand to $1.32 million this
year compared to $1.29 million in 2005.

          Non-Interest  Expense.  Non-interest expense increased $6.1 million or
40.3 % to $21.2 million in 2006  compared to $15.1 million in 2005.  Included in
non-interest expense is a $3.4 million contribution to the Foundation as part of
our initial public  offering.  The increase from  year-to-year  in  non-interest
expense,  excluding  this  one-time  contribution,  was  $2.6  million  or 17.4%
compared to the prior year.

         Salaries and employee benefits increased $1.7 million or 19.6% to $10.3
million for the year ended  December 31, 2006  compared to $8.6 million in 2005.
The  increase  in  salaries  and  employee  benefits  was  primarily  due to the
following:  (1) the opening of our corporate headquarters and new main office in
September  2005,  with 2006 reflecting a full year of expense for this facility;
(2) the  opening of a new branch in January of 2007;  (3) a full year of General
Abstract  salaries  in  2006  compared  to  nine  months  in  2005;  and (4) the
implementation of the Roma Bank Employee Stock Ownership Plan in connection with
our initial public offering in July of 2006.

         Net occupancy  expense increased $500 thousand or 43.5% to $1.7 million
for 2006  compared to $1.2  million in 2005.  The  increase in this  category is
primarily  due to the full year of operation in our corporate  headquarters  and
new main office, which opened in September 2005.

         Equipment  costs  increased  $300 thousand to $1.5 million for the year
ended December 31, 2006 compared to $1.2 million for the year ended December 31,
2005. The increase in this category is also primarily  associated  with the full
year of operations in the corporate headquarters and new office in 2006.

         Data  processing  costs,  advertising  and  Federal  Insurance  Premium
expense in the aggregate  decreased $53,000 between years, or 2.3%. This minimal
decrease was primarily due to decreased  telecommunication  and monthly  service
charges from our core processor.

         Other  non-interest  expense  increased $400 thousand,  or 22%, to $2.1
million for 2006.  Insurance  expense increased $62 thousand and fees related to
the audit and  Sarbanes-Oxley  Section 404  compliance  increased $140 thousand.
These increases are related to our becoming a public company during 2006.

         Provision  for Income Taxes.  The provision for income taxes  decreased
$1.4 million to $2.4 million for the year ended  December 31, 2006,  compared to
$3.8 million in the prior year. The decrease in income tax expense resulted from
the impact on net income of the contribution to the Foundation.

Comparison of Operating Results for the Years Ended December 31, 2005 and 2004

         General.  Net income for 2005 was $7.5 million, $77 thousand lower than
in 2004.  A $3.4  million  increase  in  interest  income was  negated by a $3.5
million  increase in interest  expense.  A significant  $1.3 million increase in
non-interest  income from $1.6  million in 2004 to $2.9 million in 2005 was more
than  offset by a $1.7  million  increase  in  non-interest  expense  and an $80
thousand increase in the provision for loan losses.

                                       45

<PAGE>

         Interest  Income.  Benefiting  from a  year-to-year  growth in  earning
assets of $77.8 million and a slight  improvement in rates,  interest income was
nearly 11.3%  higher in 2005  compared to 2004;  sharply  improving on the minor
decrease  between  2003  and  2004.  With  the  exception  of  a 4%  decline  in
residential  mortgage  interest,  interest  income for all other  major loan and
investment categories increased between years.

         Interest on loans  increased to $20.7 million from $18.7  million.  The
average balance of loans increased 9.9% to $349.8 million in 2005 as compared to
$318.2  million in 2004 while the average  yield on loans  increased to 5.91% in
2005 from 5.89% in 2004. The average  balance of taxable  investment  securities
increased  10.8% to $172.6 million in 2005 as compared to $155.8 million in 2004
while the average yield on taxable investment securities rose by 23 basis points
to 3.27% from 3.04%.  The average  balance of tax-exempt  investment  securities
decreased  4.4% to $10.8  million in 2005 as compared  to $11.3  million in 2004
while that average yield on tax-exempt  investment securities went from 4.57% to
4.53%.  The  average  balance of  mortgage-backed-securities  increased  9.0% to
$150.6  million in 2005 as compared to $138.2  million in 2004 while the average
yield on  mortgage-backed  securities  fell 15 basis points to 4.75% from 4.90%.
The  overall  yield on  interest-earning  assets  improved to 4.90% in 2005 from
4.79% in 2004.

         Interest Expense. Interest expense increased $3.5 million, or 47.3%, to
$10.9 million for 2005.  The increase was fueled by (i) thirteen rate  increases
initiated  by the  Federal  Reserve  during the second  half of 2004 and through
2005, which aggregated 325 basis points;  (ii) fierce competition for funds; and
(iii) substantial growth in certificates of deposit.

         The  upward  movement  in  short  term  rates,   the  need  to  respond
competitively to the extraordinarily high rates offered by competitors,  and the
need to stimulate  deposit growth Florence  Township and upon the opening of the
Washington  Township  branch,  all  combined  to increase  the  average  cost of
interest-bearing liabilities in 2005 by 46 basis points to 1.81% from 1.35%

         A shift in the deposit base more heavily  towards  certificates,  which
grew 31.7%, had a considerable  influence on the cost of funds. Helping mitigate
this to some extent was success in attracting  commercial  accounts.  Commercial
lending  has  generated  growth  in the  Bank's  non-interest  bearing  checking
accounts. The Bank's utilization of a five year fixed-rate FHLBNY advance in the
fourth  quarter  of 2005  had the  effect  of  increasing  the  average  cost of
liabilities.

         Provision  for Loan  Losses.  We charge  provisions  for loan losses to
operations at a level  required to reflect  credit losses in the loan  portfolio
that are both probable and  reasonable to estimate.  Management,  in determining
the  allowance  for loan  losses,  considers  the  losses  inherent  in the loan
portfolio  and  changes in the nature and volume of our loan  activities,  along
with the  general  economic  and real  estate  market  conditions.  We utilize a
three-tier  approach:  (1) identification of impaired loans and establishment of
specific  allowances  on such  loans;  (2)  establishment  of general  valuation
allowances  in the  remainder  of our loan  portfolio,  and (3) we  establish  a
specific loan loss allowance for an impaired loan based on  delinquency  status,
size of loan, type of collateral and/ or appraisal of the underlying  collateral
and  financial  condition of the  borrower.  Management  bases general loan loss
allowances on a  combination  of factors  including,  but not limited to, actual
loan loss experience, composition of loan portfolio, current economic conditions
and  management's  judgment.  Compared to 2004, the provision for 2005 increased
nearly $80 thousand to $128 thousand. The allowance for loan losses was 0.23% of
total loans at December 31, 2005, compared to 0.22% at December 31, 2004.

                                       46

<PAGE>

         Non-Interest  Income.  Non-interest  income  includes  fees and service
charges  generated  from loans and  deposits,  commissions  on the sale of title
insurance  policies,  bank-owned-life-insurance  income, and other miscellaneous
income.  Overall,  non-interest income increased by $1.3 million, or 85.6%, over
the prior year, of which $1.2 million was generated by General  Abstract & Title
Agency.  The Bank  acquired  General  Abstract  & Title  Agency  in March  2005.
Excluding  General  Abstract,  the  Bank's  non-interest  income  improved  $186
thousand for 2005.

         Non-interest Expenses.  Total non-interest expenses for 2005 were $15.1
million as compared to $13.4 million for 2004.  Changes within the components of
non-interest expenses were as follows.

         Salaries and employee benefits totaled $8.6 million for 2005,  compared
to $7.8 million in the prior year, an increase of $800  thousand,  or 10.1%.  Of
this  increase  $566  thousand  was  attributable  to salaries  and benefits for
General Abstract, which was acquired in March of 2005.

         Net occupancy  expense  increased $300 thousand to $1.2 million in 2005
compared to $800 thousand in 2004. The primary  reasons for the increase was the
opening of our corporate headquarters and eighth branch in September of 2005 and
occupancy cost for General Abstract of $103 thousand.

         Equipment  expense  increased  $200  thousand  to $1.2  million in 2005
compared to $1.0  million in 2004.  The primary  reason for the increase was not
capitalized costs for our corporate headquarters and eighth branch in 2005.

         Data  processing  fees  increased $36 thousand  from 2004 to 2005.  The
primary  reason for the  increase  was charges  related to higher  transactional
activity with our VISA and ATM cards and vendor  increases  for those  services,
which in the aggregate totaled $40 thousand.

         Advertising  expense  increased  $266 thousand in 2005 to $800 thousand
compared to $500 thousand in 2004.  The Bank  increased its overall  advertising
initiatives to coincide with the new corporate  office and branch opening and to
expand awareness of our commercial lending capabilities.

         Other  non-interest  expenses increased $83 thousand from year to year.
Costs related to the acquisition of General Abstract were primarily  responsible
for this increase.

         Income Taxes.  Income tax expense for 2005 was $3.9 million as compared
to $4.3 million for 2004. The reduction reflects lower income for 2005.

         In the fourth quarter 2004,  Roma Capital  Investment  Corporation  was
incorporated as a wholly-owned  subsidiary of the Bank. It was capitalized  with
approximately  $201.2  million  in  investments  and  mortgage-backed-securities
transferred  from the Bank. In New Jersey,  investment  companies are taxed at a
rate of 3.6% rather than the business  corporate rate of 9%. The presence of the
investment  company  during the year ended  December 31, 2005 resulted in income
tax  savings  of  approximately  $281  thousand  and  reduced  the  consolidated
effective income tax rate by 2.5% and 0.6%, respectively.

                                       47

<PAGE>

         Average  Balance  Sheet.  The  average  yields  and costs  shown in the
following  table are derived by dividing  income or expense by the daily average
balance of assets or liabilities, respectively, for the periods presented.

<TABLE>
<CAPTION>
                            At December 31,                                For the Year Ended December 31,
                           ----------------- ---------------------------------------------------------------------------------------
                                2006                        2006                        2005                          2004
                           ----------------- -------------------------------  --------------------------   -------------------------
                                      Actual                         Average                     Average                     Average
                           Actual     Yield/    Average              Yield/   Average            Yield/     Average           Yield/
                           Balance     Cost     Balance   Interest    Cost    Balance Interest    Cost      Balance  Interest  Cost
                           -------     ----     -------   --------    ----    ------- --------    ----      -------  --------  ----
                                                                                (Dollars in thousands)
<S>                      <C>          <C>    <C>          <C>         <C>   <C>       <C>         <C>     <C>       <C>       <C>
Interest-earning assets:
   Loans receivable,
      net (1)             $420,382     6.24%  $400,486     $24,748     6.18% $349,758  $20,662     5.91%   $318,154  $18,740   5.89%
   Mortgage-backed
      securities held
      to maturity          144,480     4.88    147,727       7,166     4.85   150,586    7,158     4.75     138,175    6,613   4.79
   Investment
   securities: (2)
      Tax-exempt            11,750     4.41     11,450         503     4.39    10,829      490     4.53      11,329      518   4.57
      Taxable              177,508     4.06    181,038       6,468     3.57   172,610    5,638     3.27     155,824    4,900   3.14
  Other interest-
    earning assets (3)      58,914     5.10     41,932       1,984     4.73    22,646      684     3.02      26,727      377   1.41
                          --------            --------     -------             ------  -------             --------  -------
   Total interest-
     earning
     assets                813,034     5.41    782,633      40,869     5.22   706,429   34,632     4.90     650,209   31,148   4.79
                                                           -------                      ------                        ------
Non-interest-earning
  assets                    63,047              59,532                         50,749                        39,906
                          --------            --------                         ------                      --------
   Total assets           $876,081            $842,165                       $757,178                      $690,115
                          ========            ========                       ========                      ========
Interest-bearing
liabilities:
   Interest-bearing
     demand               $ 98,278     0.53   $ 94,204     $   512     0.54  $100,241  $   477     0.48    $ 95,251     $356   0.37
   Savings and club        185,925     0.93    208,364       1,717     0.82   219,368    1,987     0.91     227,110    1,675   0.74
   Certificates of
     deposit               316,660     4.30    315,613      12,479     3.95   279,026    8,278     2.97     224,750    5,361   2.39
   Federal Home
     Loan Bank
     borrowings              7,863     4.49     10,548         482     4.57     3,694      159     4.30           7        -   1.43
                          --------            --------     -------              -----  -------             --------  -------
   Total interest-
     bearing
     liabilities           608,726     2.66    628,729      15,190     2.42   602,329   10,901     1.81     547,118    7,392   1.35
                                                           -------                     -------                       -------
Non-interest-bearing
  liabilities               32,701              32,140                         19,327                        16,512
                          --------            --------                         ------                      --------
   Total liabilities       641,427             660,869                        621,656                       563,630
Stockholders' equity       234,654             181,296                        135,522                       126,485
                          --------            --------                        -------                      --------
   Total liabilities
     and stockholders'
     equity               $876,081            $842,165                       $757,178                      $690,115
                          ========            ========                       ========                      ========
Net interest income                                        $25,679                     $23,731                       $23,756
                                                           =======                     =======                       =======
Interest rate
  spread (4)                           2.75%                           2.80%                       3.09%                       3.44%
                                       ====                            ====                        ====                        ====
Net yield on
  interest-earning
  assets (5)                                                           3.28%                       3.36%                       3.65%
                                                                       ====                        ====                        ====
Ratio of
  average interest
  -earning assets
  to average
  interest-bearing
  liabilities                                   1.24x                           1.17x                         1.19x
                                                 ====                            ====                          ====
</TABLE>

(1)  Non-accruing  loans have been included in loans receivable,  and the effect
     of such inclusion was not material.
(2)  Includes both available for sale and held to maturity securities.
(3)  Includes  interest-bearing deposits at other banks, federal funds purchased
     and Federal Home Loan Bank of New York capital stock.
(4)  Interest rate spread represents the difference between the average yield on
     interest-earning   assets  and  the   average   cost  of   interest-bearing
     liabilities.
(5)  Net yield on  interest-earning  assets  represents net interest income as a
     percentage of average interest-earning assets.

                                       48

<PAGE>

Rate/Volume Analysis.


         The following table reflects the sensitivity of our interest income and
interest  expense to changes in volume and in prevailing  interest  rates during
the  periods  indicated.  Each  category  reflects  the:  (1)  changes in volume
(changes in volume multiplied by old rate); (2) changes in rate (changes in rate
multiplied by old volume):  and (3) net change.  The net change  attributable to
the combined impact of volume and rate has been allocated  proportionally to the
absolute dollar amounts of change in each.

<TABLE>
<CAPTION>
                                                 Year Ended December 31,           Year Ended December 31,
                                                     2006 vs. 2005                     2005 vs. 2004
                                               Increase (Decrease) Due To       Increase (Decrease) Due To
                                              -----------------------------    -----------------------------
                                               Volume      Rate       Net       Volume     Rate        Net
                                              -------    -------    -------    -------    -------    -------
                                                                     (In thousands)
<S>                                           <C>        <C>        <C>        <C>        <C>        <C>
Interest and dividend income:
   Loans receivable                           $ 3,145    $   941    $ 4,086    $ 1,858    $    64    $ 1,922
   Mortgage-backed securities,
       held to maturity                          (147)       155          8        590        (45)       545
   Investment securities:
       Tax-exempt                                  28        (15)        13        (23)        (5)       (28)
       Taxable                                    294        536        830        543        195        738
  Other interest earnings assets                  913        387      1,300        (58)       365        307
                                              -------    -------    -------    -------    -------    -------
       Total interest-earning assets          $ 4,233    $ 2,004    $ 6,237    $ 2,910    $   574    $ 3,484
                                              =======    =======    =======    =======    =======    =======
Interest expense:
   Interest-bearing demand                    $   (28)   $    63    $    35    $    17    $   104    $   121
   Savings and club                              (100)      (170)      (270)       (57)       369        312
   Certificates of deposit                      1,094      3,107      4,201      1,294      1,623      2,917
   Advances from Federal Home Loan Bank           313         10        323        158        101        159
                                              -------    -------    -------    -------    -------    -------
         Total interest-bearing liabilities   $ 1,279    $ 3,010    $ 4,289    $ 1,412    $ 2,207    $ 3,509
                                              =======    =======    =======    =======    =======    =======

Change in net interest income                 $ 2,954    $(1,006)   $ 1,948    $ 1,498    $(1,523)   $   (25)
                                              =======    =======    =======    =======    =======    =======
</TABLE>

                                       49

<PAGE>

Liquidity, Commitments and Capital Resources

         The Bank's liquidity,  represented by cash and cash  equivalents,  is a
product of its operating, investing and financing activities. The Bank's primary
sources of funds are  deposits,  amortization,  prepayments  and  maturities  of
mortgage-backed  securities  and  outstanding  loans,  maturities  of investment
securities and funds  provided from  operations.  In addition,  the Bank invests
excess funds in short-term  interest-earnings  assets such as overnight deposits
or U.S. agency securities, which provide liquidity to meet lending requirements.
While  scheduled  payments from the  amortization  of loans and  mortgage-backed
securities and maturing  investment  securities and short-term  investments  are
relatively  predictable  sources  of funds,  general  interest  rates,  economic
conditions and competition  greatly  influence  deposit flows and prepayments on
loans and mortgage-backed securities.


         The Bank is required to have enough  investments that qualify as liquid
assets in order to maintain  sufficient  liquidity  to ensure a safe  operation.
Liquidity may increase or decrease  depending upon the availability of funds and
comparative  yields on investments in relation to the return on loans.  The Bank
attempts  to  maintain  adequate  but not  excessive  liquidity,  and  liquidity
management is both a daily and long-term function of business management.

         The Bank reviews cash flow  projections  regularly  and updates them in
order to maintain liquid assets at levels  believed to meet the  requirements of
normal  operations,  including loan  commitments and potential  deposit outflows
from maturing  certificates of deposit and savings withdrawals.  At December 31,
2006 the Bank had  outstanding  commitments to originate  loans of $5.6 million,
and unused lines of credit of $44.1 million.  Certificates of deposit  scheduled
to mature in one year or less at December 31, 2006 totaled $237.8 million.

         While deposits are the Bank's  primary  source of funds,  the Bank also
generates  cash through  borrowings  from the Federal Home Loan Bank of New York
(the  "FHLBNY").  The Bank has  traditionally  enjoyed  cash flows from  deposit
activities that were sufficient to meet its day-to-day  funding  obligations and
only occasionally  used its overnight line of credit or borrowing  facility with
the FHLBNY.  At various times during 2006 and 2005,  the Bank used its overnight
line of credit at the FHLBNY to meet daily  operations.  In the third quarter of
2005 the Bank took a five year advance from the FHLBNY to meet the strong demand
for loans.  At December 31, 2006 the Bank's  borrowing limit with the FHLBNY was
$153.3 million.

         The  following  table   discloses  our   contractual   obligations  and
commitments as of December 31, 2006.

                                       50

<PAGE>

<TABLE>
<CAPTION>
                                                         Less Than                                        After
                                          Total           1 Year         1-3 Years      4-5 Years        5 years
                                          -----           ------         ---------      ---------        -------
                                                                      (In thousands)
<S>                                     <C>              <C>            <C>            <C>               <C>
Federal Home Loan Bank
   borrowings                            $ 7,862          $ 1,923        $ 4,098        $ 1,842           $    -
                                         =======          =======        =======        =======           ======
</TABLE>

<TABLE>
<CAPTION>
                                          Total
                                         Amounts         Less Than                                        After
                                        Committed         1 Year         1-3 Years      4-5 Years        5 years
                                        ---------         ------         ---------      ---------        -------
                                                                      (In thousands)
<S>                                     <C>              <C>            <C>            <C>               <C>
Lines of credit (1)                      $ 44,053         $ 44,053       $     -        $     -           $    -
Construction loans in process               8,353            8,353             -              -                -
Other commitments to
   extend credit                            5,587            5,587             -              -                -
                                         --------         --------       -------        -------           ------
        Total                            $ 57,993         $ 57,993       $     -        $     -           $    -
                                         ========         ========       =======        =======           ======
</TABLE>
(1)  Represents amounts committed to customers

         Consistent  with its goals to operate a sound and profitable  financial
organization,   the  Bank   actively   seeks  to   maintain   its  status  as  a
well-capitalized  institution in accordance  with  regulatory  standards.  As of
December 31, 2006, the Bank exceeded all capital  requirements  of the Office of
Thrift Supervision (The "OTS").

Off-Balance Sheet Arrangements

         We are a party to financial instruments with  off-balance-sheet risk in
the normal  course of our business of investing in loans and  securities as well
as in the normal course of  maintaining  and  improving  the Bank's  facilities.
These financial  instruments include significant purchase  commitments,  such as
commitments  related to capital  expenditure  plans and  commitments to purchase
investment  securities or mortgage backed securities,  and commitments to extend
credit to meet the financial  needs of our  customers.  At December 31, 2006, we
had no significant off-balance sheet commitments.


         Commitments  to extend  credit are  agreements to lend to a customer as
long as there is no  violation of any  condition  established  in the  contract.
Commitments  generally have fixed expiration dates or other termination  clauses
and may require  payment of a fee.  Our  exposure to credit loss in the event of
non-performance  by other party to the financial  instrument for  commitments to
extend  credit  is  represented  by the  contractual  notional  amount  of those
instruments.  We  use  the  same  credit  policies  in  making  commitments  and
conditional obligations as we do for on-balance-sheet instruments. Since many of
the  commitments  are  expected to expire  without  being drawn upon,  the total
commitment amounts do not necessarily  represent future cash  requirements.  For
additional information regarding our outstanding lending commitments at December
31, 2006, see Note 13 to the consolidated financial statements contained in this
Annual Report on Form 10-K.

Impact of Inflation

         The financial  statements  included in this document have been prepared
in accordance with accounting principles generally accepted in the United States
of America.  These principles  require the measurement of financial position and
operating results in terms of historical dollars, without considering changes in
the relative purchasing power of money over time due to inflation.

                                       51

<PAGE>

         Our primary assets and liabilities are monetary in nature. As a result,
interest  rates  have a more  significant  impact  on our  performance  than the
effects  of  general  levels  of  inflation.  Interest  rates,  however,  do not
necessarily  move in the same  direction or with the same magnitude as the price
of goods and services,  since such prices are affected by inflation. In a period
of rapidly rising interest rates, the liquidity and maturities of our assets and
liabilities are critical.

         The principal effect of inflation on earnings,  as distinct from levels
of interest rates, is in the area of non-interest expense. Expense items such as
employee  compensation,  employee benefits and occupancy and equipment costs may
be  subject to  increases  as a result of  inflation.  An  additional  effect of
inflation  is the  possible  increase  in the  dollar  value  of the  collateral
securing loans that we have made. We are unable to determine the extent, if any,
to which  properties  securing our loans have appreciated in dollar value due to
inflation.

Recent Accounting Pronouncements

         In July 2006, the Financial  Accounting  Standards  Board (FASB) issued
FASB  Interpretation  No. 48,  "Accounting for  Uncertainty in Income  Taxes--an
interpretation  of FASB  Statement  No.  109"  (FIN  48),  which  clarifies  the
accounting for uncertainty in tax positions.  This Interpretation  requires that
companies recognize in their financial  statements the impact of a tax position,
if that position is more likely than not of being  sustained on audit,  based on
the technical merits of the position. The provisions of FIN 48 are effective for
fiscal years beginning  after December 15, 2006,  with the cumulative  effect of
the change in accounting principle recorded as an adjustment to opening retained
earnings.  We are  currently  evaluating  the impact of  adopting  FIN 48 on our
financial statements.

         In March 2006, the FASB issued SFAS No. 156,  "Accounting for Servicing
of Financial  Assets -- An Amendment of FASB  Statement  No. 140" ("SFAS  156").
SFAS 156 requires that all separately  recognized servicing assets and servicing
liabilities be initially  measured at fair value, if practicable.  The statement
permits,  but does not require,  the subsequent  measurement of servicing assets
and  servicing  liabilities  at fair  value.  SFAS  156 is  effective  as of the
beginning of an entity's first fiscal year that begins after September 15, 2006,
which for the Company will be as of the  beginning  of fiscal 2007.  The Company
does not believe that the adoption of SFAS 156 will have a significant effect on
its financial statements.

         In September  2006,  the FASB issued FASB Statement No. 157, Fair Value
Measurements,  which  defines fair value,  establishes a framework for measuring
fair value under GAAP, and expands  disclosures  about fair value  measurements.
FASB Statement No. 157 applies to other accounting  pronouncements  that require
or permit fair value  measurements.  The new guidance is effective for financial
statements  issued for fiscal years  beginning  after November 15, 2007, and for
interim  periods  within those fiscal  years.  We are currently  evaluating  the
potential  impact,  if any,  of the  adoption of FASB  Statement  No. 157 on our
consolidated financial position, results of operations and cash flows.

         In September of 2006, the SFAS issued FASB 158, "Employers'  Accounting
for Defined Benefit Pension and other Postretirement  Plans" which required that
an employer  that  sponsors one more  single-employer  defined  benefit plans to
recognize  the  funded  status of a benefit  plan,  measured  as the  difference
between plan assets at fair value and the benefit obligation in the statement of
financial position The statement also required the recognition as a component of
other  comprehensive  income,  net of tax, the gains or losses and prior service
costs or credits as they arise.  The  statement  is  effective  for fiscal years
ending after December 15, 2006. Accordingly,  FASB 158 adjustments are reflected
in these financial statements.

                                       52

<PAGE>

         In  February of 2007,  the SFAS  issued  FASB No. 159,  "The Fair Value
Option for Financial Assets and Financial  Liabilities-Including an amendment of
FASB Statement No. 115." SFAS no. 159 permits entities to choose to measure many
financial  instruments and certain other items at fair value.  Unrealized  gains
and losses on items for which the fair value  option  has been  elected  will be
recognized  in  earnings  at each  subsequent  reporting  date.  SFAS No. 159 is
effective  for our  Company on January 1, 2008.  The Company is  evaluating  the
impact that the adoption of SFAS no. 159 will have on our consolidated financial
statements.


Item 7A.  Quantitative and Qualitative Disclosures About Market Risk
--------------------------------------------------------------------

Management of Interest Rate Risk and Market Risk

         Qualitative   Analysis.   Because  the   majority  of  our  assets  and
liabilities  are sensitive to changes in interest  rates, a significant  form of
market risk for us is interest rate risk, or changes in interest rates.

         We derive our income mainly from the difference or "spread" between the
interest  earned on loans,  securities and other  interest-earning  assets,  and
interest paid on deposits, borrowings and other interest-bearing liabilities. In
general,  the larger the spread, the more we earn. When market rates of interest
change,  the  interest  we receive on our assets and the  interest we pay on our
liabilities  will  fluctuate.  This can cause  decreases  in our  spread and can
adversely affect our income.

         The  rates  that  we earn  on our  assets  are  generally  fixed  for a
contractual period of time. We, like many savings institutions, have liabilities
that have generally  shorter  contractual  maturities  than our assets,  such as
certificates of deposit,  or have no stated maturity,  such as savings and money
market deposits. This imbalance can create significant volatility because market
interest  rates  change over time.  In a period of rising  interest  rates,  the
interest income earned on our assets, which consist primarily of long-term fixed
rate  securities,  may not  increase  as  rapidly  as the  interest  paid on our
liabilities.

         While the  federal  funds  rate and other  short-term  market  interest
rates,  which  we use  as a  guide  to  our  deposit  pricing,  have  increased,
intermediate-and long-term market interest rates, which we use as a guide to our
loan pricing, have not increased proportionately. This has led to a "flattening:
of the market yield curve,  which has even  "inverted" as short-term  rates have
exceeded long-term rates over an intermediate  maturity horizon.  The flat yield
curve has hurt our  interest  rate spread and net  interest  margin  because the
interest  rates we pay on our deposits  have  repriced  upwards  faster than the
interest rates that we earn on our loans and investments. If short-term interest
rates  continue  to rise so that the  yield  curve  remains  relatively  flat or
inverts  further,  we would expect that our new interest spread and net interest
margin would continue to compress, which would hurt our net interest income.

         A failing rate  environment  would result in a decrease in rates we pay
on deposits and borrowings, but the decrease in the cost of our funds may not be
as great at the decrease in the yields on our loan portfolio and mortgage-backed
securities and loan portfolios. This could cause a narrowing of our net interest
rate spread and could cause a decrease in our earnings.


         Quantitative  Analysis.  The  following  table  presents the Bank's net
portfolio value as of December 31, 2006. The net portfolio  values shown in this
table were calculated by the Office of Thrift Supervision,  based on information
provided by the Bank.

                                       53

<PAGE>

                                December 31, 2006
                                                  Net Portfolio Value
                                              as % of Present Value of Assets

Changes in      Net Portfolio Value                  Net Portfolio   Basis Point
Rates (1)      $ Amount       $ Change    % Change    Value Ratio       Change
               --------       --------    --------    -----------       ------

+300 bp         170,998       -46,891       (22)%       21.09%         (406) bp
+200 bp         186,955       -30,934       (12)%       22.54%         (262) bp
+100 bp         202,521       -15,368        (6)%       23.88%         (127) bp
   0 bp         217,889             -         -         25.15%            -
-100 bp        2228,407        10,518         5%        25.96%           81  bp


(1)  The  -200bp and -300bp  scenarios  are not shown due to the low  prevailing
     interest rate environment.

         Future  interest  rates or their effect on net  portfolio  value or net
interest  income are not  predictable.  Computations  of prospective  effects of
hypothetical interest rate changes are based on numerous assumptions,  including
relative levels of market interest rates, prepayments, and deposit run-offs, and
should not be relied upon as indicative of actual results.  Certain shortcomings
are  inherent  in  this  type  of  computation.   Although  certain  assets  and
liabilities may have similar maturity or periods of repricing, they may react in
different  times and in  different  degrees to  changes  in the marker  interest
rates.  The interest  rate on certain types of assets and  liabilities,  such as
demand  deposits and savings  accounts,  may  fluctuate in advance of changes in
market interest rates,  while rates on other types of assets and liabilities may
lag behind changes in market interest rates.  Certain assets, such as adjustable
rate mortgages, generally have features which restrict changes in interest rates
on a short-term  basis and over the life of the asset.  In the event of a change
in  interest  rates,  prepayments  and early  withdrawal  levels  could  deviate
significantly  from  those  assumed  in making  calculations  set  forth  above.
Additionally,  an  increased  credit  risk may  result  as the  ability  of many
borrowers to service  their debt may  decrease in the event of an interest  rate
increase.

         Notwithstanding  the discussion  above, the quantitative  interest rate
analysis presented above indicates that a rapid increase in interest rates would
adversely affect our net interest margin and earnings.

Item 8.  Financial Statements and Supplementary Data
----------------------------------------------------

         The Company's financial statements and supplementary data are contained
in this Annual Report on Form 10-K immediately following Item 15.

Item 9.  Changes  in  and  Disagreements  with  Accountants  on  Accounting  and
--------------------------------------------------------------------------------
         Financial Disclosure
         --------------------

         Not applicable.


Item 9A.  Controls and Procedures
---------------------------------

         (a)      Disclosure Controls and Procedures

         An  evaluation  was  performed  under  the  supervision,  and  with the
participation of the Company's management, including the Chief Executive Officer
and Chief Financial Officer, of the effectiveness of the design and operation of
the Company's  disclosure  controls and procedures (as defined in Rule l3a-l5(e)
promulgated  under  the  Securities  Exchange  Act of 1934,  as  amended)  as of
December 31, 2006.  Based on such  evaluation,  the  Company's  Chief  Executive
Officer and Chief Financial Officer have concluded that the Company's disclosure
controls and procedures are effective as of December 31, 2006.

                                       54

<PAGE>

         (b)      Internal Control Over Financial Reporting

         No change in the Company's  internal controls over financial  reporting
(as defined in Rule l3a-l5(f)  promulgated under the Securities  Exchange Act of
1934,  as amended)  occurred  during the most  recent  fiscal  quarter  that has
materially affected, or is reasonably likely to materially affect, the Company's
internal control over financial reporting.

Item 9B.  Other Information
---------------------------

         None.


                                    PART III

Item 10.  Directors, Executive Officers and Corporate Governance
----------------------------------------------------------------

         The information  contained under the sections  captioned "Section 16(a)
Beneficial  Ownership  Reporting  Compliance"  and  "Proposal  I --  Election of
Directors" and "--  Biographical  Information" in the definitive Proxy Statement
for the 2007 Annual Meeting of Stockholders  ("Proxy Statement") is incorporated
herein by reference.

Item 11.  Executive Compensation
--------------------------------

         The  information  contained under the section  captioned  "Director and
Executive  Compensation"  in the  Proxy  Statement  is  incorporated  herein  by
reference.

Item 12.  Security Ownership of Certain Beneficial Owners and Management
------------------------------------------------------------------------

          (a)  Security Ownership of Certain Beneficial Owners

               Information  required  by this  item is  incorporated  herein  by
               reference  to  the  Section  captioned  "Voting   Securities  and
               Principal  Holders  Thereof  --  Security  Ownership  of  Certain
               Beneficial Owners" of the Proxy Statement.

          (b)  Security Ownership of Management

               Information  required  by this  item is  incorporated  herein  by
               reference  to  the  sections  captioned  "Voting  Securities  and
               Principal  Holders  Thereof  --  Security  Ownership  of  Certain
               Beneficial  Owners" and  "Proposal I -- Election of Directors" of
               the Proxy Statement.

          (c)  Changes in Control

               Management of the Company knows of no arrangements, including any
               pledge by any person of securities of the Company,  the operation
               of which may at a  subsequent  date result in a change in control
               of the registrant.

          (d)  Securities  Authorized  for Issuance  Under  Equity  Compensation
               Plans

               None.


                                       55

<PAGE>

Item 13.  Certain   Relationships   and  Related   Transactions,   and  Director
--------------------------------------------------------------------------------
          Independence
          ------------

         The  information  required  by this  item  is  incorporated  herein  by
reference  to the section  captioned  "Proposal I --  Election of  Directors  --
Certain Relationships and Related Transactions" of the Proxy Statement.

Item 14.  Principal Accounting Fees and Services
------------------------------------------------

         The  information  called  for by this  item is  incorporated  herein by
reference to the section  entitled  "Ratification of Appointment of Accountants"
in the Proxy Statement.


                                     PART IV

Item 15.  Exhibits and Financial Statement Schedules
----------------------------------------------------

     (a)  Listed below are all financial  statements  and exhibits filed as part
          of this report, and are incorporated by reference.

          1.   The  consolidated  statements  of  financial  condition  of  Roma
               Financial  Corporation and subsidiary as of December 31, 2006 and
               2005,  and  the  related  consolidated  statements  of  financial
               condition, income, changes in stockholders' equity and cash flows
               for each of the years in the three year period ended December 31,
               2006,  together  with  the  related  notes  and  the  Independent
               Registered  Public  Accounting  Firms  auditors'  report of Beard
               Miller Company LLP.

          2.   Schedules omitted as they are not applicable.

          3.   Exhibits

               The following Exhibits are filed as part of this report:
<TABLE>
<CAPTION>
        <S>         <C>
               3.1    Charter of Roma Financial Corporation *
               3.2    Bylaws of Roma Financial Corporation*
               4      Stock Certificate of Roma Financial Corporation*
               10.1   Employment Agreement between Roma Bank and Maurice T. Perilli*
               10.2   Form of Supplemental Executive Retirement Agreement*
               10.3   Form of Phantom Stock Appreciation Rights Agreement*
               21     Subsidiaries of the Registrant
               23     Consent of Beard Miller Company LLP
               31     Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
               32     Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

---------------
     *    Incorporated by reference to the Registrant's Form S-1 Registration Statement No. 333-132415.
</TABLE>

                                       56

<PAGE>

                           ROMA FINANCIAL CORPORATION

                                    INDEX TO
                        CONSOLIDATED FINANCIAL STATEMENTS
                 FOR THE YEARS ENDED DECEMBER 31, 2006 AND 2005

                                                                            Page
                                                                            ----
Independent Auditor's Report.............................................   F-1

Consolidated Statements of Financial Condition...........................   F-2

Consolidated Statements of Income........................................   F-3

Consolidated Statements of Changes in Stockholders' Equity...............   F-4

Consolidated Statements of Cash Flows....................................   F-6

Notes to Consolidated Financial Statements...............................   F-7

                                       57

<PAGE>
[LOGO]  BMC





             REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM


To the Board of Directors and Stockholders
Roma Financial Corporation
Robbinsville, New Jersey


         We have audited the accompanying  consolidated  statements of financial
condition of Roma Financial  Corporation and subsidiaries (the "Corporation") as
of  December  31,  2006 and 2005,  and the related  consolidated  statements  of
income, changes in stockholders' equity, and cash flows for each of the years in
the three-year  period ended  December 31, 2006.  These  consolidated  financial
statements  are  the  responsibility  of  the  Corporation's   management.   Our
responsibility  is  to  express  an  opinion  on  these  consolidated  financial
statements based on our audits.

         We conducted  our audits in accordance  with auditing  standards of the
Public Company  Accounting  Oversight  Board (United  States).  Those  standards
require that we plan and perform the audit to obtain reasonable  assurance about
whether the consolidated financial statements are free of material misstatement.
The  Corporation  is not  required to have,  nor were we engaged to perform,  an
audit of its internal  control over  financial  reporting.  Our audits  included
consideration  of  internal  control  over  financial  reporting  as a basis for
designing audit  procedures that are appropriate in the  circumstances,  but not
for  the  purpose  of  expressing  an  opinion  on  the   effectiveness  of  the
Corporation's internal control over financial reporting. Accordingly, we express
no  such  opinion.  An  audit  includes  examining,  on a test  basis,  evidence
supporting the amounts and disclosures in the consolidated financial statements.
An audit also includes assessing the accounting  principles used and significant
estimates  made by management,  as well as evaluating  the overall  consolidated
financial  statement  presentation.   We  believe  that  our  audits  provide  a
reasonable basis for our opinion.

         In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the consolidated financial position of
Roma Financial  Corporation  and  subsidiaries as of December 31, 2006 and 2005,
and the  consolidated  results of their operations and their cash flows for each
of the years in the  three-year  period ended  December 31, 2006,  in conformity
with accounting principles generally accepted in the United States of America.

         As discussed in Note 1, the Company  changed its method  accounting for
Defined Benefit Pension and Other Postretirement Plans in 2006.



                                        /s/Beard Miller Company LLP


Beard Miller Company LLP
Pine Brook, New Jersey
March 7, 2007


                                       F-1
<PAGE>

Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>
                                                                                            December 31,
                                                                                       ----------------------
                                                                                         2006         2005
                                                                                       ---------    ---------
                                                                                (In thousands, except for share data)
<S>                                                                                   <C>          <C>
                                     Assets

     Cash and amounts due from depository institutions                                 $   7,219    $   5,745
     Interest-bearing deposits in other banks                                             26,521       22,324
     Money market funds                                                                   30,961           20
                                                                                       ---------    ---------

         Cash and Cash Equivalents                                                        64,701       28,089

     Securities available for sale                                                        19,331       15,514
     Investment securities held to maturity                                              169,927      173,078
     Mortgage-backed securities held to maturity                                         144,480      150,101
     Loans receivable, net of allowance for loan losses $1,169 and $878,
         respectively                                                                    420,382      378,708
     Premises and equipment                                                               30,669       28,679
     Federal Home Loan Bank of New York stock                                              1,432        1,387
     Interest receivable                                                                   4,598        3,798
     Bank owned life insurance                                                            16,185       15,640
     Other assets                                                                          4,376        2,766
                                                                                       ---------    ---------

         Total Assets                                                                  $ 876,081    $ 797,760
                                                                                       =========    =========

                      Liabilities and Stockholders' Equity
Liabilities
     Deposits:
          Non-interest bearing                                                         $  25,109    $  20,661
          Interest-bearing                                                               600,863      623,152
                                                                                       ---------    ---------
             Total deposits                                                              625,972      643,813
     Federal Home Loan Bank of New York advances                                           7,863        9,702
     Advance payments by borrowers for taxes and insurance                                 2,275        2,063
     Other liabilities                                                                     5,317        3,524
                                                                                       ---------    ---------

         Total Liabilities                                                               641,427      659,102
                                                                                       ---------    ---------
Commitments and Contingencies

Stockholders' Equity
     Common stock, $.10 par value, 45,000,000 authorized; (2006) 32,731,875
            issued and outstanding; (2005) 10,000 authorized, issued and outstanding       3,274            1
     Paid-in capital                                                                      97,069          799
     Retained earnings                                                                   143,068      137,820
     Unearned shares held by Employee Stock Ownership Plan                                (7,847)           -
     Accumulated other comprehensive income - unrealized gain on securities
         available for sale, net                                                            (910)          38
                                                                                       ---------    ---------

         Total Stockholders' Equity                                                      234,654      138,658
                                                                                       ---------    ---------

         Total Liabilities and Stockholders' Equity                                    $ 876,081    $ 797,760
                                                                                       =========    =========
</TABLE>

See notes to consolidated financial statements.
--------------------------------------------------------------------------------
                                      F-2

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Consolidated Statements of Income

<TABLE>
<CAPTION>
                                                                Years Ended December 31,
                                                              ---------------------------
                                                                2006      2005      2004
                                                              -------   -------   -------
                                                        (In thousands, except for per share data)
INTEREST INCOME

<S>                                                          <C>       <C>       <C>
   Loans                                                      $24,748   $20,662   $18,740
   Mortgage-backed securities held to maturity                  7,166     7,158     6,613
   Investment securities held to maturity                       6,406     5,661     4,720
   Securities available for sale                                  565       467       698
   Other interest-earning assets                                1,984       684       377
                                                              -------   -------   -------

       Total Interest Income                                   40,869    34,632    31,148
                                                              -------   -------   -------

INTEREST EXPENSE
   Deposits                                                    14,708    10,742     7,392
   Borrowings                                                     482       159         -
                                                              -------   -------   -------

       Total Interest Expense                                  15,190    10,901     7,392
                                                              -------   -------   -------

       Net Interest Income                                     25,679    23,731    23,756

PROVISION FOR LOAN LOSSES                                         291       128        48
                                                              -------   -------   -------

       Net Interest Income after Provision for Loan Losses     25,388    23,603    23,708
                                                              -------   -------   -------

NON-INTEREST  INCOME
   Commissions on sales of title policies                       1,361     1,159         -
   Fees and service charges on deposits and loans                 771       458       403
   Income from bank owned life insurance                          695       666       661
   Net gain from sale of mortgage loans originated for sale         6        14        36
   Other                                                          627       619       471
                                                              -------   -------   -------

       Total Non-Interest Income                                3,460     2,916     1,571
                                                              -------   -------   -------

NON-INTEREST EXPENSES
   Salaries and employee benefits                              10,282     8,595     7,804
   Net occupancy expense of premises                            1,653     1,152       820
   Equipment                                                    1,483     1,241     1,028
   Data processing fees                                         1,273     1,324     1,288
   Advertising                                                    806       813       547
   Federal insurance premium                                       86        81        81
   Charitable contributions                                     3,527       231       188
   Other                                                        2,096     1,695     1,655
                                                              -------   -------   -------

       Total Non-Interest Expenses                             21,206    15,132    13,411
                                                              -------   -------   -------

       Income before Income Taxes                               7,642    11,387    11,868

INCOME TAXES                                                    2,394     3,852     4,256
                                                              -------   -------   -------

       Net Income                                             $ 5,248   $ 7,535   $ 7,612
                                                              =======   =======   =======
NET INCOME PER COMMON SHARE
       Basic                                                  $   .19   $   .33   $   .33
                                                              =======   =======   =======
       Diluted                                                $   .19   $   .33   $   .33
                                                              =======   =======   =======
WEIGHTED AVERAGE NUMBER OF COMMON SHARES OUTSTANDING
       Basic                                                   27,305    22,584    22,584
                                                              =======   =======   =======
       Diluted                                                 27,305    22,584    22,854
                                                              =======   =======   =======
</TABLE>

See notes to consolidated financial statements.
--------------------------------------------------------------------------------
                                      F-3

<PAGE>

Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Consolidated Statements of Changes in Stockholders' Equity
Years Ended December 31, 2006, 2005 and 2004

<TABLE>
<CAPTION>
                                                                              Retained                     Accumulated
                                                                              Earnings -    Unearned          Other
                                                      Common      Paid-In    Substantially  Shares Held   Comprehensive
                                                      Stock       Capital     Restricted     by ESOP          Income        Total
                                                      -----       -------     ----------     -------          ------        -----
                                                                                  (In Thousands)
<S>                                                 <C>         <C>          <C>           <C>               <C>        <C>
Balance - December 31, 2003                           $   -       $   -        $123,673          -             $145       $123,818
                                                                                                                          --------
     Comprehensive income:
         Net income                                       -           -           7,612          -                -          7,612
         Unrealized holding loss on securities
           available for sale, net of income taxes
           of $(27)                                       -           -               -          -              (37)           (37)
                                                                                                                          --------
         Total Comprehensive Income                                                                                          7,575
                                                      -----       -----        --------      -----             ----       --------

Balance - December 31, 2004                               -           -         131,285          -              108        131,393
                                                                                                                          --------
     Comprehensive income:
         Net income                                       -           -           7,535          -                -          7,535
         Unrealized holding loss on securities
           available for sale, net of income taxes
           of $(49)                                       -           -               -          -              (70)           (70)
                                                                                                                          --------
         Total Comprehensive Income                                                                                          7,465
                                                                                                                          --------
     Initial capitalization of mutual holding
         company                                          1         799          (1,000)         -                -           (200)
                                                      -----       -----        --------      -----             ----       --------

Balance - December 31, 2005                               1         799         137,820          -               38        138,658
                                                                                                                          --------
</TABLE>

See notes to consolidated financial statements.
-------------------------------------------------------------------------
                                      F-4

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Consolidated Statements of Changes in Stockholders' Equity
Years Ended December 31, 2006, 2005 and 2004

<TABLE>
<CAPTION>
                                                                              Retained                    Accumulated
                                                                              Earnings -    Unearned        Other
                                                      Common      Paid-In    Substantially  Shares Held  Comprehensive
                                                      Stock       Capital     Restricted     by ESOP        Income         Total
                                                      -----       -------     ----------     -------        ------         -----
                                                                                  (In Thousands)
<S>                                                 <C>         <C>          <C>           <C>              <C>           <C>
     Comprehensive income:
         Net income                                        -             -        5,248             -              -         5,248

         Unrealized holding loss on securities
           available for sale, net of income  taxes
           of $(72)                                        -             -            -             -
                                                                                                                (158)         (158)
         Initial application of FASB 158,
            net of income taxes $(526)                     -             -            -             -           (790)         (790)
                                                                                                                           -------
         Total Comprehensive Income                        -             -            -             -              -         4,300
                                                                                                                           -------
       Issuance of common stock, net of
            expenses                                   3,273        96,126            -             -              -        99,399

     ESOP shares earned                                    -           144            -           270              -           414
     Common stock acquired by ESOP                         -             -            -        (8,117)             -        (8,117)
                                                      ------       -------     --------       -------          -----      --------

Balance - December 31, 2006                           $3,274       $97,069     $143,068       $(7,847)         $(910)     $234,654
                                                      ======       =======     ========       =======          =====      ========
</TABLE>

See notes to consolidated financial statements.
-------------------------------------------------------------------------
                                      F-5

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Consolidated Statements of Cash Flows

<TABLE>
<CAPTION>
                                                                              Years Ended December 31,
                                                                          --------------------------------
                                                                            2006        2005        2004
                                                                          --------    --------    --------
                                                                                   (In Thousands)
<S>                                                                     <C>         <C>         <C>
CASH FLOWS FROM OPERATING ACTIVITIES
   Net income                                                             $  5,248    $  7,535    $  7,613
   Adjustments to reconcile net income to net cash provided by
      operating activities:
      Depreciation of premises and equipment                                 1,178         755         566
      Amortization of premiums and accretion of discounts on securities        (44)        (91)        (99)
      Accretion of deferred loan fees and discounts                             34        (171)       (177)
      Net gain on sale of mortgage loans originated for sale                    (6)        (14)        (36)
      Mortgage loans originated for sale                                      (823)     (2,718)     (4,858)
      Proceeds from sales of mortgage loans originated for sale                829       2,732       4,894
      Provision for loan losses                                                291         128          48
      Deferred income tax expense (benefit)                                 (1,835)        134        (175)
      Contribution of common stock to charitable foundation                  3,273           -           -
      (Increase) in interest receivable                                       (800)       (611)       (230)
      (Increase) in cash surrender value of bank owned life insurance         (545)       (526)       (533)
      (Increase) decrease in other assets                                     (310)     (1,020)        295
      Increase (decrease) in interest payable                                  397         716         (11)
      Increase (decrease) in other liabilities                               1,239         145         808
      Allocation of ESOP shares                                                414           -           -
                                                                          --------    --------    --------
         Net Cash Provided by Operating Activities                           8,540       6,994       8,105
                                                                          --------    --------    --------
CASH FLOWS FROM INVESTING ACTIVITIES
   Proceeds from calls and repayments on securities available for sale       1,264          17         148
   Proceeds from maturities and calls of securities available for sale           -           -       2,395
   Purchases of securities available for sale                               (5,338)     (2,101)     (2,095)
   Proceeds from maturities and calls of investment securities held to
      maturity                                                              49,000      10,060      41,160
   Purchases of investment securities held to maturity                     (45,845)    (22,988)    (48,449)
   Principal repayments on mortgage-backed securities held to maturity      25,453      31,207      32,923
   Purchases of mortgage-backed securities held to maturity                (19,791)    (42,936)    (35,893)
   Net increase in loans receivable                                        (41,999)    (43,415)    (31,289)
   Additions to premises and equipment                                      (3,168)     (8,879)     (7,089)
   (Purchase) redemption of Federal Home Loan Bank of New York stock           (45)      2,652        (105)
   Purchase of bank owned life insurance                                         -           -          (1)
                                                                          --------    --------    --------
         Net Cash Used in Investing Activities                             (40,469)    (76,383)    (48,295)
                                                                          --------    --------    --------
CASH FLOWS FROM FINANCING ACTIVITIES
   Net increase (decrease) in deposits                                     (17,841)     67,513      31,839
   Increase in advance payments by borrowers for taxes and insurance           212         519          77
   Federal Home Loan Bank of New York advances                                   -      10,000           -
   Repayments of Federal Home Loan Bank of New York advances                (1,839)       (298)          -
   Initial capitalization of mutual holding company                              -        (200)          -
   Common stock acquired by ESOP                                            (8,117)          -           -
   Net proceeds from issuance of common stock                               96,126           -           -
                                                                          --------    --------    --------

         Net Cash Provided by Financing Activities                          68,541      77,534      31,916
                                                                          --------    --------    --------

         Net Increase (Decrease) in Cash and Cash Equivalents               36,612       8,145      (8,274)

CASH AND CASH EQUIVALENTS - BEGINNING                                       28,089      19,944      28,218
                                                                          --------    --------    --------

CASH AND CASH EQUIVALENTS - ENDING                                        $ 64,701    $ 28,089    $ 19,944
                                                                          ========    ========    ========
SUPPLEMENTARY CASH FLOWS INFORMATION
   Income taxes paid, net                                                 $  2,948    $  4,271    $  4,470
                                                                          ========    ========    ========

   Interest paid                                                          $ 14,786    $ 10,185    $  7,403
                                                                          ========    ========    ========
</TABLE>

See notes to consolidated financial statements.
-------------------------------------------------------------------------
                                      F-6

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 1 - Summary of Significant Accounting Policies

Principles of Consolidation

     The  consolidated   financial  statements  include  the  accounts  of  Roma
     Financial Corporation (the "Company"),  its wholly-owned  subsidiary,  Roma
     Bank (the "Bank") and the Bank's  wholly-owned  subsidiaries,  Roma Capital
     Investment Co. (the "Investment Co.") and General Abstract and Title Agency
     (the "Title Co."). All significant  intercompany  accounts and transactions
     have been eliminated in consolidation.

     The Investment Co. was  incorporated  in the State of New Jersey  effective
     September 4, 2004, and began operations October 1, 2004. The Investment Co.
     is a special  purpose  entity  whose  activities  are  limited  to  holding
     investment securities and collection of earnings,  principal repayments and
     recognizing other gains/losses  thereon.  It holds a substantial portion of
     the Company's investment and mortgage-backed  securities  portfolios and is
     subject to the investment  company provisions of the New Jersey Corporation
     Business Tax Act. The Title Co. was incorporated in the State of New Jersey
     effective  March 7, 2005 and  commenced  operations  April 1, 2005 upon the
     acquisition  of the  assets of the  General  Abstract & Title  Agency  (the
     "Agency"),  which  consisted  primarily of the Agency's title search files.
     Related  goodwill of  approximately  $572,000 was recognized as a result of
     the purchase price exceeding the fair market value of assets acquired.

Basis of Consolidated Financial Statement Presentation

     The consolidated financial statements have been prepared in conformity with
     accounting  principles  generally accepted in the United States of America.
     In preparing the consolidated financial statements,  management is required
     to make  estimates  and  assumptions  that affect the  reported  amounts of
     assets and  liabilities  as of the date of the  consolidated  statements of
     financial  condition  and revenues and expenses for the periods then ended.
     Actual results could differ significantly from those estimates.

     A material estimate that is particularly  susceptible to significant change
     relates to the  determination of the allowance for loan losses.  Management
     believes that the allowance for loan losses is adequate.  While  management
     uses the most current  information  available to recognize losses on loans,
     future additions to the allowance for loan losses may be necessary based on
     changes in economic conditions in the market area.

     In addition,  various  regulatory  agencies,  as an integral  part of their
     examination  process,  periodically  review the Bank's  allowance  for loan
     losses.  Such  agencies may require the Bank to recognize  additions to the
     allowance based on their judgments about  information  available to them at
     the time of their examinations.

Business of the Company and Subsidiaries

     The Company's  primary business is the ownership and operation of the Bank.
     The Bank is principally engaged in the business of attracting deposits from
     the  general  public at its nine  locations  in New Jersey and using  those
     deposits,  together with other funds,  to invest in securities  and to make
     loans  collateralized  by residential  and commercial real estate and, to a
     lesser  extent,  consumer  loans.  The  Bank's  subsidiary,   Roma  Capital
     Investment  Company,  was organized to hold investments and mortgage-backed
     securities.  The Bank's  subsidiary,  General  Abstract  and Title  Agency,
     provides title searches and policies its customers real estate investments.

Cash and Cash Equivalents

     Cash and cash  equivalents  include  cash and amounts  due from  depository
     institutions,  interest-bearing  deposits  in  other  banks  with  original
     maturities of three months or less and money market funds.

--------------------------------------------------------------------------------
                                      F-7

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 1 - Summary of Significant Accounting Policies (Continued)

Securities

     Investments  in debt  securities  that the Bank and the Investment Co. have
     the positive  intent and ability to hold to maturity are classified as held
     to maturity  securities  and  reported at amortized  cost.  Debt and equity
     securities that are bought and held  principally for the purpose of selling
     them in the near term are classified as trading  securities and reported at
     fair value, with unrealized  holding gains and losses included in earnings.
     Debt and equity securities not classified as trading securities nor as held
     to maturity  securities are classified as available for sale securities and
     reported at fair value,  with  unrealized  holding gains or losses,  net of
     deferred  income taxes,  reported in the  accumulated  other  comprehensive
     income component of stockholders' equity.

     Declines  in the fair  value  of  available  for sale and held to  maturity
     securities  below  their  amortized  cost that are  deemed to be other than
     temporary  are  reflected  in earnings as realized  losses.  In  estimating
     other-than-temporary impairment losses, management considers (1) the length
     of time and the extent to which the fair value has been less than amortized
     cost,  (2) the financial  condition and near-term  prospects of the issuer,
     and (3) the intent and ability of the Bank and Investment Co. to retain the
     investment  in the issuer for a period of time  sufficient to allow for any
     anticipated recovery in fair value.

     Discounts  and  premiums  are  accreted/amortized  to  income by use of the
     level-yield method.

     Gain or loss on sales of securities is based on the specific identification
     method.

Loans Receivable

     Loans  receivable  are  carried  at  unpaid  principal  balances,  less the
     allowance for loan losses and net deferred loan fees and discounts.

     The Bank defers loan  origination  fees and certain direct loan origination
     costs and  accretes/amortizes  such amounts to income using the level-yield
     method over the contractual lives of the related loans.

     The Bank  provides an  allowance  for the loss of  uncollected  interest on
     loans  that are  more  than  ninety  days  delinquent  as to  principal  or
     interest.  Such interest ultimately  collected is credited to income in the
     period of recovery.

Allowance for Loan Losses

     An  allowance  for loan  losses is  maintained  at a level that  represents
     management's  best  estimate  of  losses  known  and  inherent  in the loan
     portfolio that are both probable and reasonable to estimate.  Management of
     the Bank,  in  determining  the  allowance  for loan losses,  considers the
     credit risks  inherent in its loan  portfolio and changes in the nature and
     volume of its loan  activities,  along with the general  economic  and real
     estate market  conditions.  The Bank  utilizes a three tier approach  which
     identifies: (1) impaired loans for which specific reserves are established;
     (2)  classified  loans for which a higher yield  allowance is  established;
     and,  (3)  performing  loans  for which a general  valuation  allowance  is
     established..  The Bank  maintains a loan review  system which allows for a
     periodic  review  of its loan  portfolio  and the early  identification  of
     potential impaired loans. Such system takes into consideration, among other
     things,  delinquency  status,  size  of  loans,  types  of  collateral  and
     financial  condition of the  borrowers.  Specific loan loss  allowances are
     established  for  identified  loans  based on a review of such  information
     and/or  appraisals  of  the  underlying   collateral.   General  loan  loss
     allowances  are based  upon a  combination  of factors  including,  but not
     limited to, actual loan loss experience, composition of the loan portfolio,
     current economic conditions and management's judgment.  Although management
     believes that  appropriate  loan loss  allowances are  established,  actual
     losses are dependent upon future events and, as such,  further additions to
     the level of loan loss allowances may be

--------------------------------------------------------------------------------
                                      F-8

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 1 - Summary of Significant Accounting Policies (Continued)

Allowance for Loan Losses (Continued)

     necessary. Payments received on impaired loans are applied first to accrued
     interest receivable and then to principal.

     A loan  evaluated for  impairment is deemed to be impaired  when,  based on
     current information and events, it is probable that the Bank will be unable
     to collect all amounts due according to the  contractual  terms of the loan
     agreement.  All loans  identified as impaired are evaluated  independently.
     The Bank does not aggregate  such loans for evaluation  purposes.  Payments
     received on impaired  loans are applied  first to interest  receivable  and
     then to principal.

Premises and Equipment

     Premises  and  equipment  are  comprised of land,  including  land held for
     future  development,  and land  improvements,  at cost,  and  buildings and
     improvements  and  furnishings  and equipment,  at cost,  less  accumulated
     depreciation. Depreciation charges are computed on the straight-line method
     over the following estimated useful lives:

                                                        Years
                                                     ------------

            Buildings and improvements                 20 - 50
            Furnishings and equipment                   3 - 10

     Construction in progress primarily represents facilities under construction
     for future use in our  business  and includes all costs to acquire land and
     construct   buildings,   as  well  as  capitalized   interest   during  the
     construction  period.  Interest is capitalized at the average interest rate
     of overnight funds.

     Significant  renewals  and  betterments  are  charged to the  premises  and
     equipment  account.  Maintenance  and repairs are charged to expense in the
     year  incurred.  Rental  income is netted  against  occupancy  costs in the
     consolidated statements of income.


Federal Home Loan Bank Stock

     Federal law  requires a member  institution  of the Federal  Home Loan Bank
     system to hold  restricted  stock of its  district  Federal  Home Loan Bank
     according to a predetermined  formula.  The restricted  stock is carried at
     cost.

Bank Owned Life Insurance

     The Bank is the  beneficiary of insurance  policies on the lives of certain
     officers,  employees  and  directors  of  the  Bank.  This  life  insurance
     investment  is accounted for using the cash  surrender  value method and is
     recorded at its net realizable  value. The change in the net asset value is
     recorded as non-interest income.

Income Taxes

     The Company and it  subsidiaries  file a  consolidated  federal  income tax
     return.  Income  taxes are  allocated  to the Company and its  subsidiaries
     based on the  contribution  of  their  income  or use of their  loss in the
     consolidated  return.  Separate  state  income tax returns are filed by the
     Company and its subsidiaries.

--------------------------------------------------------------------------------
                                      F-9

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 1 - Summary of Significant Accounting Policies (Continued)

Income Taxes (Continued)

     Federal and state income taxes have been  provided on the basis of reported
     income.  The  amounts  reflected  on the  tax  returns  differ  from  these
     provisions  due  principally  to temporary  differences in the reporting of
     certain  items for financial  reporting and income tax reporting  purposes.
     Deferred  income  taxes have been  recorded  to  recognize  such  temporary
     differences.

Advertising Costs

     Advertising costs are expensed as incurred. The direct response advertising
     conducted by the Bank is immaterial and has not been capitalized.

Other Comprehensive Income

     The Company  records  unrealized  gains and losses,  net of deferred income
     taxes, on available for sale securities in accumulated other  comprehensive
     income. Realized gains and losses, if any, are reclassified to non-interest
     income upon the sale of the related  securities or upon the  recognition of
     an impairment  loss. The Company has elected to report the effects of other
     comprehensive  income  in  the  consolidated  statements  of  stockholders'
     equity.

     Other  comprehensive   income  also  includes  amounts  recognized  in  the
     implementation of SFAS 158. This adjustment to other  comprehensive  income
     reflects,  net of tax,  transition  obligations,  prior service costs,  and
     unrealized  net losses  that had not been  recognized  in the  consolidated
     financial statements prior to the implementation of SFAS 158.

Interest Rate Risk

     We are principally  engaged in the business of attracting deposits from the
     general public and using these deposits, together with borrowings and other
     funds, to purchase securities and to make loans secured by real estate. The
     potential  for  interest-rate  risk  exists  as a result  of the  generally
     shorter  duration  of our  interest-sensitive  liabilities  compared to the
     generally  longer duration of our  interest-sensitive  assets.  In a rising
     rate  environment,  liabilities  will reprice  faster than assets,  thereby
     reducing  net  interest  income.  For  this  reason,  management  regularly
     monitors the maturity  structure of our assets and  liabilities in order to
     measure our level of interest-rate risk and to plan for future volatility.

Concentration of Risk

     The Bank's  lending  activity is chiefly  concentrated  in loans secured by
     real estate located in the State of New Jersey.  The Bank also had deposits
     in excess of the FDIC insurance limit at other financial  institutions.  At
     December 31, 2006 and 2005,  such deposits  totaled $57.4 million and $22.3
     million,  which  were  held by the  Federal  Home Loan Bank of New York and
     another financial  institution.  Generally,  deposits in excess of $100,000
     are not insured by the FDIC.

--------------------------------------------------------------------------------
                                      F-10

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 1 - Summary of Significant Accounting Policies (Continued)

Transfers of Financial Assets

     Transfers of financial  assets are accounted for as sales when control over
     the assets has been surrendered.  Control over transferred assets is deemed
     to be  surrendered  when (1) the assets have been isolated from us, (2) the
     transferee  obtains the right (free of  conditions  that  constrain it from
     taking  advantage  of that  right) to pledge or  exchange  the  transferred
     assets,  and, (3) we do not maintain effective control over the transferred
     assets through an agreement to repurchase them before their maturity.

Off-Balance Sheet Credit Related Financial Instruments

     In the ordinary  course of business,  we have entered into  commitments  to
     extend credit,  including commitments under lines of credit. Such financial
     instruments are recorded when they are funded.

Recent Accounting Pronouncements

     In July 2006, the Financial  Accounting  Standards Board (FASB) issued FASB
     Interpretation  No. 48,  "Accounting  for  Uncertainty in Income  Taxes--an
     interpretation  of FASB  Statement No. 109" (FIN 48),  which  clarifies the
     accounting for uncertainty in tax positions.  This Interpretation  requires
     that companies recognize in their financial  statements the impact of a tax
     position,  if that  position is more likely than not of being  sustained on
     audit, based on the technical merits of the position. The provisions of FIN
     48 are effective for fiscal years  beginning  after December 15, 2006, with
     the cumulative effect of the change in accounting  principle recorded as an
     adjustment to opening retained  earnings.  We are currently  evaluating the
     impact of adopting FIN 48 on our financial statements.

      In March 2006, the FASB issued SFAS No. 156,  "Accounting for Servicing of
     Financial  Assets -- An Amendment of FASB  Statement No. 140" ("SFAS 156").
     SFAS 156  requires  that all  separately  recognized  servicing  assets and
     servicing  liabilities be initially measured at fair value, if practicable.
     The statement permits, but does not require, the subsequent  measurement of
     servicing  assets and  servicing  liabilities  at fair  value.  SFAS 156 is
     effective as of the beginning of an entity's  first fiscal year that begins
     after September 15, 2006, which for the Company will be as of the beginning
     of fiscal 2007.  The Company does not believe that the adoption of SFAS 156
     will have a significant effect on its financial statements.

     In  September  2006,  the FASB issued FASB  Statement  No. 157,  Fair Value
     Measurements,  which  defines  fair  value,  establishes  a  framework  for
     measuring fair value under GAAP, and expands  disclosures  about fair value
     measurements.   FASB   Statement  No.  157  applies  to  other   accounting
     pronouncements  that  require or permit  fair value  measurements.  The new
     guidance is  effective  for  financial  statements  issued for fiscal years
     beginning  after  November 15, 2007,  and for interim  periods within those
     fiscal years. We are currently  evaluating the potential impact, if any, of
     the  adoption  of FASB  Statement  No.  157 on our  consolidated  financial
     position, results of operations and cash flows.

     In September of 2006, the SFAS issued FASB 158, "Employers'  Accounting for
     Defined Benefit Pension and other Postretirement Plans" which required that
     an employer that sponsors one more single-employer defined benefit plans to
     recognize the funded status of a benefit plan,  measured as the  difference
     between  plan  assets  at fair  value  and the  benefit  obligation  in the
     statement of financial position The statement also required the recognition
     as a component  of other  comprehensive  income,  net of tax,  the gains or
     losses and prior service  costs or credits as they arise.  The statement is
     effective  for fiscal years ending  after  December 15, 2006.  Accordingly,
     FASB 158 adjustments are reflected in these financial statements.

--------------------------------------------------------------------------------
                                      F-11

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements

Note 1 - Summary of Significant Accounting Policies (Continued)

     In February of 2007,  the FASB issued SFAS No. 159,  "The Fair Value Option
     for Financial  Assets and Financial  Liabilities-Including  an amendment of
     FASB Statement No. 115." SFAS No. 159 permits entities to choose to measure
     many  financial   instruments  and  certain  other  items  at  fair  value.
     Unrealized  gains and losses on items for which the fair  value  option has
     been elected will be  recognized in earnings at each  subsequent  reporting
     date.  SFAS No. 159 is  effective  for our Company on January 1, 2008.  The
     Company is  evaluating  the impact  that the  adoption of SFAS no. 159 will
     have on our consolidated financial statements.

Earnings per Common Share ("EPS)

     Basic earnings per share is based on the weighted  average number of common
     shares  actually  outstanding  adjusted for Employee  Stock  Ownership Plan
     ("ESOP") shares not yet committed to be released. Diluted EPS is calculated
     by  adjusting  the  weighted  average  number of  shares  of  common  stock
     outstanding to include the effect of contracts or securities exercisable or
     which could be converted into common stock, if dilutive, using the treasury
     stock method. During the periods presented, diluted EPS dud bit duffer from
     basic EPS as there were no existing contracts or securities  exercisable or
     convertible  into common  stock  during these  periods.  Shares  issued and
     reacquired  during any period are  weighted  for the  portion of the period
     they  were  outstanding.   The  10,000  shares  issued  to  Roma  Financial
     Corporation,  MHC in connection with the Company's  reorganization  in 2004
     were "replaced" with 22,584,994  shares, or 69% of the shares issued in the
     Company's initial public offering. This transaction is analogous to a stock
     split or significant stock dividend, therefore, net income per common share
     for  those  shares  have  been  retroactively   restated  for  all  periods
     presented.

--------------------------------------------------------------------------------
                                      F-12

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 2 - Securities Available for Sale

<TABLE>
<CAPTION>
                                                                              December 31, 2006
                                                          --------------------------------------------------------------
                                                                               Gross            Gross
                                                        Amortized            Unrealized       Unrealized         Carrying
                                                          Cost                 Gains           Losses              Value
                                                          ----                 -----           ------              -----
                                                                                  (In Thousands)
<S>                                                       <C>                  <C>                 <C>              <C>
Mortgage-backed securities                                 $ 1,507              $ 17                $  -             $ 1,524
                                                           -------              ----                ----             -------

Obligations of state and political subdivisions:
     After five years through ten years                      4,148                66                   -               4,214
     After ten years                                         5,867                74                   -               5,941
                                                           -------              ----                ----             -------

                                                            10,015               140                   -              10,155
                                                           -------              ----                ----             -------
U.S. Government (including agencies) due after
     one year through five years                             2,000                 -                  21               1,979
Equity securities                                            3,630                39                 222               3,447
Mutual fund shares                                           2,368                 -                 142               2,226
                                                           -------              ----                ----             -------

                                                           $19,520              $196                $385             $19,331
                                                           =======              ====                ====             =======
</TABLE>

<TABLE>
<CAPTION>
                                                                              December 31, 2005
                                                          --------------------------------------------------------------
                                                                               Gross            Gross
                                                        Amortized            Unrealized       Unrealized         Carrying
                                                          Cost                 Gains           Losses              Value
                                                          ----                 -----           ------              -----
                                                                                  (In Thousands)
<S>                                                       <C>                  <C>                 <C>              <C>
Mortgage-backed securities                               $     121             $    9            $     -           $     130
                                                           -------               ----               ----             -------

Obligations of state and political subdivisions:
     After five years through ten years                      2,098                 44                  -               2,142
     After ten years                                         7,912                165                  -               8,077
                                                           -------               ----               ----             -------

                                                            10,010                209                  -              10,219
                                                           -------               ----               ----             -------
U.S. Government (including agencies) due after
     one year through five years                             3,000                  -                 39               2,961
Equity securities                                               50                  -                  -                  50
Mutual fund shares                                           2,266                  -                112               2,154
                                                           -------               ----               ----             -------

                                                           $15,447               $218               $151             $15,514
                                                           =======               ====               ====             =======
</TABLE>

--------------------------------------------------------------------------------
                                      F-13

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 2 - Securities Available for Sale (Continued)

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

<TABLE>
<CAPTION>
                                        Less than 12 Months             More than 12 Months                  Total
                                      ------------------------       -------------------------       -------------------------
                                       Fair         Unrealized         Fair         Unrealized         Fair        Unrealized
                                       Value          Losses           Value          Losses           Value         Losses
                                       -----          ------           -----          ------           -----         ------
                                                                      (In Thousands)
<S>                              <C>               <C>               <C>              <C>            <C>            <C>
December 31, 2006:
     U.S. Government
         (including agencies)         $    -            $  -          $1,979           $  21          $1,979           $ 21
     Equity securities                 3,357             222               -               -           3,357            222
     Mutual funds                      2,226             142               -               -           2,226            142
                                      ------            ----          ------           -----          ------           ----

                                      $5,583            $364          $1,979           $  21          $7,562           $385
                                      ======            ====          ======           =====          ======           ====

December 31, 2005:
     U.S. Government
         (including agencies)         $1,991            $  9          $  970           $  30          $2,961           $ 39
     Mutual funds                      2,154             112               -               -           2,154            112
                                      ------            ----          ------           -----          ------           ----

                                      $4,145            $121          $  970           $  30          $5,115           $151
                                      ======            ====          ======           =====          ======           ====
</TABLE>

Management  does  not  believe  that  any of the  individual  unrealized  losses
represent an  other-than-temporary  impairment.  The unrealized losses on mutual
funds are on shares in  registered  funds that invest  primarily in money market
instruments  and short to moderate term fixed rate  securities.  The  unrealized
losses on U.S. Government agency securities are on fixed rate securities.  These
unrealized  losses  are due to  changes  in market  interest  rates.  The equity
securities  and  mutual  funds are  subject to market  fluctuations.  Management
believes that both the equity and mutual fund  investment  continue to be credit
worthy and that is no underlying  financial  situation that would cause concern.
The Bank and Investment Co. have the intent and ability to hold these securities
for a time  necessary to recover the  amortized  cost.  As of December 31, 2006,
there was one mutual  fund,  one equity and one U.S.  Government  securities  in
unrealized  loss  positions  compared  to one  U.S.  Government  security  in an
unrealized loss position in the prior year.

There were no sales of  securities  available  for sale  during the years  ended
December 31, 2006, 2005, and 2004.

--------------------------------------------------------------------------------
                                      F-14

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 3 - Investment Securities Held to Maturity

<TABLE>
<CAPTION>
                                                                        December 31, 2006
                                                          -------------------------------------------------------
                                                                         Gross            Gross         Estimated
                                                        Amortized      Unrealized       Unrealized        Fair
                                                          Cost           Gains           Losses           Value
                                                          ----           -----           ------           -----
                                                                            (In Thousands)
<S>                                                       <C>            <C>                 <C>         <C>
U.S. Government (including agencies):
     Within one year                                      $ 57,996         $ -              $  374       $ 57,622
     After one year through five years                      59,310          16               1,110         58,216
     After five years through ten years                     51,026           4                 565         50,465
                                                          --------         ---              ------       --------
                                                           168,332          20               2,049        166,303

Obligations of state and political subdivisions:
     After ten years                                         1,595          36                   -          1,631
                                                          --------         ---              ------       --------

                                                          $169,927         $56              $2,049       $167,934
                                                          ========         ===              ======       ========
</TABLE>

<TABLE>
<CAPTION>

                                                                        December 31, 2005
                                                          -------------------------------------------------------
                                                                         Gross            Gross         Estimated
                                                        Amortized      Unrealized       Unrealized        Fair
                                                          Cost           Gains           Losses           Value
                                                          ----           -----           ------           -----
                                                                            (In Thousands)
<S>                                                       <C>            <C>               <C>         <C>
U.S. Government (including agencies):
     Within one year                                      $ 27,998          $ -             $  456       $ 27,542
     After one year through five years                      96,809            -              2,331         94,478
     After five years through ten years                     47,456            2                831         46,627
                                                          --------          ---             ------       --------
                                                           172,263            2              3,618        168,647

Obligations of state and political subdivisions:
     After ten years                                           815           22                  -            837
                                                          --------          ---             ------       --------

                                                          $173,078          $24             $3,618       $169,484
                                                          ========          ===             ======       ========
</TABLE>

The  unrealized  losses,  categorized  by the length of time of continuous  loss
position,  and the fair value of related  investments  held to  maturity  are as
follows:

--------------------------------------------------------------------------------
                                      F-15

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 3 - Investment Securities Held to Maturity (Continued)

<TABLE>
<CAPTION>
                                        Less than 12 Months             More than 12 Months                  Total
                                      ------------------------       -------------------------       -------------------------
                                       Fair         Unrealized         Fair         Unrealized         Fair        Unrealized
                                       Value          Losses           Value          Losses           Value         Losses
                                       -----          ------           -----          ------           -----         ------
                                                                      (In Thousands)
<S>                              <C>               <C>               <C>              <C>            <C>            <C>
December 31, 2006:
     U.S. Government (including agencies):
         Within one year              $2,992            $  6        $ 54,630          $  368        $ 57,622         $  374
         After one year
              through five
              years                      996               4          56,380           1,106          57,376          1,110
         After five years
              through ten
              years                   21,945             113          25,519             452          47,464            565
                                     -------            ----        --------          ------        --------         ------

                                     $25,933            $123        $136,529          $1,926        $162,462         $2,049
                                     =======            ====        ========          ======        ========         ======

December 31, 2005:
     U.S. Government (including agencies):
         Within one year             $     -            $  -        $ 27,542          $  456        $ 27,542         $  456
         After one year
              through five
              years                    4,897             102          88,579           2,229          93,476          2,331
         After five years
              through ten
              years                    9,850             126          36,777             705          46,627            831
                                     -------            ----        --------          ------        --------         ------

                                     $14,747            $228        $152,898          $3,390        $167,645         $3,618
                                     =======            ====        ========          ======        ========         ======
</TABLE>

Management  does  not  believe  that  any of the  individual  unrealized  losses
represent  an  other-than-temporary  impairment.  The  unrealized  losses are on
issues  that earn  interest at a fixed  interest  rate and are due to changes in
market interest  rates.  The Bank and Investment Co. have the intent and ability
to hold these investments for a time necessary to recover the amortized cost. As
of  December  31,  2006,  there  were 130  U.S.  Government  agencies  , and two
obligations  of state and political sub divisions in unrealized  loss  positions
compared to 117 and 2, respectively, in unrealized loss positions as of December
31, 2005.

There were no sales of investment  securities  held to maturity during the years
ended December 31, 2006, 2005, and 2004.

At December 31, 2006 and 2005,  approximately  $52.6 million and $172.3 million,
respectively, of investment securities held to maturity were callable within one
year.

See Note 9 for  information as to investment  securities  held to maturity which
are pledged for borrowings.

--------------------------------------------------------------------------------
                                      F-16

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 4 - Mortgage-Backed Securities Held to Maturity

<TABLE>
<CAPTION>
                                                                                December 31, 2006
                                                          -------------------------------------------------------------------
                                                                               Gross              Gross
                                                          Carrying          Unrealized         Unrealized          Estimated
                                                           Value               Gains             Losses            Fair Value
                                                           -----               -----             ------            ----------
                                                                                (In Thousands)

<S>                                                       <C>                   <C>               <C>               <C>
Government National Mortgage Association                  $  5,630              $ 33              $   53            $  5,610
Federal Home Loan Mortgage Corporation                      79,822               261               1,104              78,979
Federal National Mortgage Association                       53,880               244                 934              53,190
Collateralized mortgage obligations                          5,148                15                 185               4,978
                                                          --------              ----              ------            --------

                                                          $144,480              $553              $2,276            $142,757
                                                          ========              ====              ======            ========
</TABLE>

<TABLE>
<CAPTION>
                                                                                December 31, 2005
                                                          -------------------------------------------------------------------
                                                                               Gross              Gross
                                                          Carrying          Unrealized         Unrealized          Estimated
                                                           Value               Gains             Losses            Fair Value
                                                           -----               -----             ------            ----------
                                                                                (In Thousands)

<S>                                                     <C>                     <C>             <C>               <C>
Government National Mortgage Association                  $  7,454               $ 59             $   63            $  7,450
Federal Home Loan Mortgage Corporation                      80,155                427              1,610              78,972
Federal National Mortgage Association                       58,389                398                987              57,800
Collateralized mortgage obligations                          4,103                  -                214               3,889
                                                          --------               ----             ------            --------

                                                          $150,101               $884             $2,874            $148,111
                                                          ========               ====             ======            ========
</TABLE>

The  unrealized  losses,  categorized  by the length of time of continuous  loss
position,  and the fair  value of  related  mortgage-backed  securities  held to
maturity are as follows:

<TABLE>
<CAPTION>
                                        Less than 12 Months             More than 12 Months                  Total
                                     ------------------------        ------------------------        -----------------------
                                      Fair         Unrealized         Fair         Unrealized         Fair        Unrealized
                                      Value          Losses           Value          Losses           Value         Losses
                                      -----          ------           -----          ------           -----         ------
                                                                      (In Thousands)

<S>                                  <C>                <C>         <C>              <C>           <C>              <C>
December 31, 2006:
     Government National
         Mortgage
         Association                  $    -             $ -         $ 3,370          $   52        $  3,370         $   53
     Federal Home Loan
         Mortgage
         Corporation                   4,384              14          52,420           1,090          56,804          1,104
     Federal National
         Mortgage
         Association                   1,817               4          35,077             930          36,894            934
     Collateralized mortgage
         obligations                       -               -           3,208             185           3,208            185
                                      ------             ---         -------          ------        --------         ------

                                      $6,201             $18         $94,075          $2,257        $100,276         $2,276
                                      ======             ===         =======          ======        ========         ======
</TABLE>

--------------------------------------------------------------------------------
                                      F-17

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 4 - Mortgage-Backed Securities Held to Maturity (Continued)

<TABLE>
<CAPTION>
                                        Less than 12 Months             More than 12 Months                  Total
                                     ------------------------        ------------------------        -----------------------
                                      Fair         Unrealized         Fair         Unrealized         Fair        Unrealized
                                      Value          Losses           Value          Losses           Value         Losses
                                      -----          ------           -----          ------           -----         ------
                                                                      (In Thousands)
<S>                                <C>              <C>            <C>              <C>          <C>              <C>
December 31, 2005:
     Government National
         Mortgage
         Association                 $ 1,579          $   13         $ 2,626          $   50        $  4,205         $   63
     Federal Home Loan
         Mortgage
         Corporation                  37,757           1,000          12,152             610          49,909          1,610
     Federal National
         Mortgage
         Association                  23,238             342          19,569             645          42,807            987
     Collateralized mortgage
         obligations                       -               -           3,889             214           3,889            214
                                     -------          ------         -------          ------        --------         ------

                                     $62,574          $1,355         $38,236          $1,519        $100,810         $2,874
                                     =======          ======         =======          ======        ========         ======
</TABLE>

Management  does  not  believe  that  any of the  individual  unrealized  losses
represent  an   other-than-temporary   impairment.   The  unrealized  losses  on
mortgage-backed  securities  relate  primarily to fixed  interest  rate and to a
lesser extent adjustable interest rate securities. Such losses are the result of
changes in  interest  rates.  The Bank and  Investment  Co.  have the intent and
ability to hold these  securities  for a time necessary to recover the amortized
cost.  As of December  31,  2006,  there were 23  Government  National  Mortgage
Association,  76 Federal Home Loan  Mortgage  Corporation,  49 Federal  National
Mortgage Association,  and 6 Collateralized mortgage obligations,  in unrealized
loss positions compared to 23, 72, 42, and 6,  respectively,  in unrealized loss
positions as of December 31, 2005.

There were no sales of  mortgage-backed  securities  held to maturity during the
years ended December 31, 2006, 2005, and 2004.

At December 31, 2006 and 2005,  mortgage-backed securities held to maturity with
a carrying value of  approximately $ 1,126,000 and $58,000,  respectively,  were
pledged to secure public funds on deposit.

--------------------------------------------------------------------------------
                                      F-18

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 5 - Loans Receivable

                                                       December 31,
                                                  ---------------------
                                                    2006         2005
                                                  --------     --------
                                                      (In Thousands)

          Real estate mortgage loans:
               Conventional 1-4 family            $207,755     $191,634
               Commercial and multi-family          65,848       53,614
                                                  --------     --------

                                                   273,603      245,248
                                                  --------     --------

          Construction                              23,956       20,020
                                                  --------     --------
          Consumer:
               Personal                                  -          465
               Passbook or certificate               1,314        1,071
               Automobile                               33           41
               Equity and second mortgages         127,450      118,318
                                                  --------     --------

                                                   128,797      119,895
                                                  --------     --------

          Commercial                                 3,724        2,351
                                                  --------     --------

                 Total Loans                       430,080      387,514
                                                  --------     --------
          Less:
               Allowance for loan losses             1,169          878
               Deferred loan fees and discounts        176          269
               Loans in process                      8,353        7,659
                                                  --------     --------

                                                     9,698        8,806
                                                  --------     --------

                                                  $420,382     $378,708
                                                  ========     ========

At December 31, 2006 and 2005,  loans serviced for the benefit of others totaled
approximately  $7,436,000  and  $7,206,000,  respectively,  which  balances  are
excluded from the above portfolio. The Bank has an agreement to sell residential
mortgages to the FHLB of New York (the "FHLB"). The maximum to be sold under the
agreement is $10.0  million and  approximately  $8.0 million has been sold as of
December  31, 2006.  The  agreement  includes a maximum  credit  enhancement  of
$177,500, which the Bank may be required to pay if realized losses on any of the
sold mortgages exceed the amount held in the FHLB's Spread Account.  The FHLB is
funding the Spread  Account at 3.55% of the  outstanding  balance of loans sold.
The Bank's historical  losses on residential  mortgages have been lower than the
amount being funded to the Spread Account. As such, the Bank does not anticipate
recognizing  any losses and  accordingly  has not  recorded a liability  for the
credit  enhancement.  As compensation  for the credit  enhancement,  the FHLB is
paying the Bank at rates of .07% to .10% of the outstanding  loan balance in the
portfolio on a quarterly basis.

--------------------------------------------------------------------------------
                                      F-19

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 5 - Loans Receivable (Continued)

The Bank retains the  servicing on the loans sold to the FHLB and receives a fee
based upon the principal  balance  outstanding.  During the years ended 2006 and
2005, the Bank recognized approximately $ 17,000 and $13,000,  respectively,  of
servicing fee income.

At December 31, 2006, 2005 and 2004,  nonaccrual  loans for which the accrual of
interest has been discontinued totaled  approximately  $363,000,  $654,000,  and
$787,000,  respectively.  Interest  income on such loans is recognized only when
actually collected. During the years ended December 31, 2006, 2005 and 2004, the
Bank recognized interest income of approximately $12,000,  $40,000, and $34,000,
respectively,  on these loans. Interest income that would have been recorded had
the loans been on the  accrual  status,  would have  amounted  to  approximately
$22,000,  $47,000,  and $55,000 for the years ended December 31, 2006,  2005 and
2004,  respectively.  The  Bank is not  committed  to lend  additional  funds to
borrowers whose loans have been placed on nonaccrual status.

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

<TABLE>
<CAPTION>
                                                                                         December 31,
                                                                                  -----------------------------
                                                                                     2006                2005
                                                                                     ----                ----
                                                                                    (In Thousands)

<S>                                                                                <C>                 <C>
          Recorded investment in impaired loans with recorded allowances            $  41               $  68
          Related allowance for loan losses                                            (6)                (11)
                                                                                    -----               -----
                                                                                    $  35               $  57
                                                                                    =====               =====
</TABLE>

For the years ended  December  31,  2006,  2005 and 2004,  the average  recorded
investment  in  impaired  loans  totaled  approximately  $64,000,  $73,000,  and
$112,000,  respectively.  Interest income of approximately $8,000,  $13,000, and
$8,000, respectively, all recorded on the cash basis, was recognized on impaired
loans during the period of impairment.

The following is an analysis of the allowance for loan losses:

<TABLE>
<CAPTION>
                                                                                          Years Ended December 31,
                                                                               ----------------------------------------------
                                                                                 2006               2005                2004
                                                                                 ----               ----                ----
                                                                                         (In Thousands)

<S>                                                                             <C>                <C>                 <C>
          Balance - beginning                                                    $878               $750                $702
               Provisions charged to operations                                   291                128                  48
               Losses charged to allowance                                          -                  -                   -
                                                                               ------               ----                ----
          Balance - ending                                                     $1,169               $878                $750
                                                                               ======               ====                ====
</TABLE>

The Bank has granted loans to officers and directors of the Bank.  Related party
loans are made on  substantially  the same terms,  including  interest rates and
collateral,  as those  prevailing at the time for comparable  transactions  with
unrelated  persons and do not involve  more than normal risk of  collectibility.
The  aggregate  amount  of  these  loans  at  December  31,  2006  and  2005 was
approximately  $727,000  and  $758,000,  respectively.  During  the  year  ended
December 31, 2006,,  there were no new loans to related  parties and  repayments
totaled $31,000.

--------------------------------------------------------------------------------
                                      F-20

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 6 - Premises and Equipment

<TABLE>
<CAPTION>

                                                                                                        December 31,
                                                                                                 ---------------------------
                                                                                                   2006               2005
                                                                                                 -------             -------
                                                                                                       (In Thousands)

<S>                                                                                             <C>                 <C>
          Land held for future development                                                       $ 1,054             $ 1,054
                                                                                                 -------             -------

          Construction in progress, including land of $503                                         2,598                 569
                                                                                                 -------             -------

          Land and land improvements                                                               5,428               5,271
                                                                                                 -------             -------

          Buildings and improvements                                                              22,611              22,234
          Accumulated depreciation                                                                (3,775)             (3,223)
                                                                                                 -------             -------

                                                                                                  18,836              19,011
                                                                                                 -------             -------

          Furnishings and equipment                                                                6,936               6,331
          Accumulated depreciation                                                                (4,183)             (3,557)
                                                                                                 -------             -------

                                                                                                   2,753               2,774
                                                                                                 -------             -------

                                                                                                 $30,669             $28,679
                                                                                                 =======             =======
</TABLE>

Note 7 - Interest Receivable

<TABLE>
<CAPTION>
                                                                                                        December 31,
                                                                                                 ---------------------------
                                                                                                   2006                2005
                                                                                                 -------             -------
                                                                                                       (In Thousands)

<S>                                                                                               <C>                 <C>
          Loans receivable                                                                        $1,927              $1,576
          Investment securities held to maturity                                                   1,734               1,386
          Mortgage-backed securities held to maturity                                                693                 681
          Securities available for sale                                                              192                 155
          Other interest-earning assets                                                               52                   -
                                                                                                  ------              ------

                                                                                                  $4,598              $3,798
                                                                                                  ======              ======
</TABLE>

--------------------------------------------------------------------------------
                                      F-21

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements

Note 8 - Deposits

<TABLE>
<CAPTION>
                                                                                     December 31,
                                                            ----------------------------------------------------------------
                                                                     2006                                  2005
                                                            --------------------------            --------------------------
                                                                           Weighted                              Weighted
                                                                           Average                               Average
                                                            Amount       Interest Rate            Amount       Interest Rate
                                                            ------       -------------            ------       -------------
                                                                            (Dollars In Thousands)
<S>                                                     <C>                 <C>               <C>                  <C>
Demand:
     Non-interest bearing checking                        $ 25,109            0.00%             $ 20,661             0.00%
     Interest bearing checking                              98,278            0.53%              100,721             0.54%
                                                          --------                              --------

                                                           123,387            0.42%              121,382             0.45%

Savings and club                                           185,925            0.93%              208,109             0.93%

Certificates of deposit                                    316,660            4.30%              314,322             3.48%
                                                          --------                              --------

                                                          $625,972            2.53%             $643,813             2.08%
                                                          ========                              ========
</TABLE>

Certificates   of  deposit  with   balances  of  more  than   $100,000   totaled
approximately  $74,134,000  and  $69,721,000  at  December  31,  2006 and  2005,
respectively.  Deposits  in excess of  $100,000  are not  insured by the Federal
Deposit Insurance Corporation.

<TABLE>
<CAPTION>
                                                                                                       December 31,
                                                                                                ----------------------------
                                                                                                  2006                2005
                                                                                                --------            --------
                                                                                                       (In Thousands)
<S>                                                                                           <C>                 <C>
          One year or less                                                                      $237,814            $204,013
          After one to two years                                                                  32,923              54,833
          After two to three years                                                                16,984              22,264
          After three to four years                                                               23,715              10,512
          After four to five years                                                                 5,094              22,514
          After five years                                                                           130                 186
                                                                                                --------            --------
                                                                                                $316,660            $314,322
                                                                                                ========            ========
</TABLE>

Interest expense on deposits consists of the following:

<TABLE>
<CAPTION>
                                                                                        Years Ended December 31,
                                                                              ----------------------------------------------
                                                                                2006               2005                2004
                                                                              -------            -------              ------
                                                                                             (In Thousands)
<S>                                                                          <C>                <C>                  <C>
          Demand                                                              $   512            $   477              $  356
          Savings and club                                                      1,717              1,987               1,675
          Certificates of deposit                                              12,479              8,278               5,361
                                                                              -------            -------              ------

                                                                              $14,708            $10,742              $7,392
                                                                              =======            =======              ======
</TABLE>

--------------------------------------------------------------------------------
                                      F-22

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 9 - Federal Home Loan Bank ("FHLB") Advances

At  December  31,  2006 and 2005,  the Bank had an  outstanding  long-term  FHLB
advance totaling $7.9 million and $9.7 million,  respectively.  The borrowing is
at a fixed rate of 4.49% and requires monthly  principal and interest payment of
$186,385  with a final  maturity of September 15, 2010. A schedule of the annual
principal obligation is as follows (in thousands):

                            Year ending December 31,
                                 2007                      $1,923
                                 2008                       2,011
                                 2009                       2,087
                                 2010                       1,842
                                 2011                           -
                                                           ------
                                                           $7,863
                                                           ======

At  December  31, 2006 and 2005 the advance was secured by pledges of the Bank's
investment in the capital stock of the FHLB totaling $ 1,432,000 and $1,387,000,
respectively,  and a specific  pledge of investment  securities held to maturity
with a par value totaling $ 26 million and $59 million, respectively.

At December 31, 2006 and 2005, the Bank also had available to it $79,667,700 and
$74,060,400,  respectively,  under a revolving  line of credit and an additional
$79,667,700 and $74,060,400,  respectively,  under a Companion (DRA) Commitment,
both  expiring July 31, 2007 and July 31, 2006,  respectively,  with the Federal
Home Loan Bank of New York.  Borrowings  are at the  lenders  cost of funds plus
0.25%.  There were no outstanding  borrowings under the line of credit or DRA at
December 31, 2006 and 2005.


Note 10 - Regulatory Capital Requirement

The Bank is subject to various regulatory capital  requirements  administered by
Federal  banking  agencies.  Failure to meet minimum  capital  requirements  can
initiate certain mandatory,  and possibly additional  discretionary,  actions by
regulators  that,  if  undertaken,  could have a direct  material  effect on the
Bank's  financial   statements.   Under  capital  adequacy  guidelines  and  the
regulatory  framework for prompt corrective  action, the Bank must meet specific
capital  guidelines  that involve  quantitative  measures of the Bank's  assets,
liabilities,  and certain off-balance-sheet items as calculated under regulatory
accounting  practices.  The Bank's capital amounts and  classification  are also
subject  to   qualitative   judgments  by  the  regulators   about   components,
risk-weighting, and other factors.


--------------------------------------------------------------------------------
                                      F-23

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 10 - Regulatory Capital Requirement (Continued)

Quantitative  measures  established  by  regulation to ensure  capital  adequacy
require  the Bank to  maintain  minimum  amounts  and ratios of Total and Tier 1
capital (as defined in the  regulations) to  risk-weighted  assets (as defined),
and of Tier 1 capital to  adjusted  total  assets (as  defined).  The  following
tables present a reconciliation of capital per accounting  principles  generally
accepted in the United  States of America  ("GAAP") and  regulatory  capital and
information as to the Bank's capital levels at the dates presented:

<TABLE>
<CAPTION>
                                                                                                    December 31,
                                                                                                ----------------------------
                                                                                                  2006                2005
                                                                                                --------            --------
                                                                                                    (In Thousands)

<S>                                                                                            <C>                 <C>
          GAAP capital                                                                          $184,692            $137,858
          Goodwill                                                                                  (572)               (572)
          Unrealized (gain) loss on securities available for sale                                    120                 (38)
                                                                                                --------            --------

          Core and tangible capital                                                              184,240             137,248
          General valuation allowance                                                              1,169                 867
                                                                                                --------            --------

                 Total Regulatory Capital                                                       $185,409            $138,115
                                                                                                ========            ========
</TABLE>

<TABLE>
<CAPTION>
                                                                                                    To be Well
                                                                                                 Capitalized under
                                                                        For Capital Adequacy     Prompt Corrective
                                                        Actual                  Purposes         Action Provisions
                                                  ------------------    --------------------   --------------------
                                                  Amount       Ratio       Amount     Ratio      Amount     Ratio
                                                  ------       -----       ------     -----      ------     -----
                                                                       (Dollars in Thousands)

<S>                                         <C>            <C>         <C>           <C>      <C>          <C>
As of December 31, 2006:
     Total capital (to risk-weighted
         assets)                                $185,409       40.55%     $36,545      8.00%    $45,682     10.00%
     Tier 1 capital (to risk-weighted
         assets)                                 184,240       40.30                             27,409      6.00
     Core (Tier 1) capital (to adjusted
         total assets)                           184,240       22.10       24,993      3.00      41,654      5.00
     Tangible capital (to adjusted total
         assets)                                 184,240       22.10       12,497      1.50           -         -

As of December 31, 2005:
     Total capital (to risk-weighted
         assets)                                $138,115       32.74%     $33,748      8.00%    $42,185     10.00%
     Tier 1 capital (to risk-weighted
         assets)                                 137,248       32.53            -         -      25,311      6.00
     Core (Tier 1) capital (to adjusted
         total assets)                           137,248       17.21       23,925      3.00      39,874      5.00
     Tangible capital (to adjusted total
         assets)                                 137,248       17.21       11,962      1.50           -         -
</TABLE>

As of February 2, 2006, the most recent  notification  from the Office of Thrift
Supervision,  the Bank,  based on its actual  capital  amounts at September  30,
2005, was  categorized as well  capitalized  under the regulatory  framework for
prompt corrective  action. To be categorized as well capitalized,  the Bank must
maintain  minimum total,  risk-based,  and Tier 1 leverage ratios of 10%, 6% and
5%, respectively.  There are no conditions exiting or events which have occurred
since notification that management believes have changed the Bank's category.

--------------------------------------------------------------------------------
                                      F-24

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 11 - Benefit Plans

Pension Plan

     The  Bank  has  a  non-contributory  pension  plan  covering  all  eligible
     employees.  The  Bank's  policy is to fund the  pension  plan  with  annual
     contributions  which equal the maximum amount deductible for federal income
     tax purposes.  The following  table sets forth the plan's funded status and
     components of net periodic pension expense:

<TABLE>
<CAPTION>
                                                                                                        December 31,
                                                                                                  --------------------------
                                                                                                   2006                2005
                                                                                                  ------              ------
                                                                                                       (In Thousands)
<S>                                                                                             <C>                 <C>
          Change in Benefit Obligation
               Benefit obligation - beginning                                                    $ 7,795             $ 6,709
                   Service cost                                                                      345                 282
                   Interest cost                                                                     450                 412
                   Actuarial (gain) loss                                                            (220)                727
                   Benefits paid                                                                    (262)               (251)
                   Settlements                                                                       (13)                (84)
                                                                                                  ------              ------

               Benefit obligation - ending                                                         8,095               7,795
                                                                                                  ------              ------

          Change in Plan Assets
               Fair value of assets - beginning                                                    7,022               6,038
                   Actual gain on plan assets                                                        583                 728
                   Employer contributions                                                            252                 591
                   Benefits paid                                                                    (262)               (251)
                   Settlements                                                                       (13)                (84)
                                                                                                  ------              ------

               Fair value of assets - ending                                                       7,582               7,022
                                                                                                  ------              ------

          Funded status                                                                             (513)               (773)
               Unrecognized net loss                                                                   -               1,470
               Unrecognized prior service liability                                                    -                 180
                                                                                                  ------              ------

               Prepaid (accrued) expense                                                          $ (513)             $  877
                                                                                                  ======              ======

          Discount rate                                                                             6.13%               5.88%
          Long-term rate                                                                            8.50%               8.50%
          Salary increase rate                                                                      4.00%               3.50%
</TABLE>

     At December 31, 2006, unrecognized net loss of $ 1,196,000 and unrecognized
     prior  service  liability of $ 120,000 were included in  accumulated  other
     comprehensive income in accordance with SFAS No. 158. Approximately $38,000
     and $ 42,000 if these  balances  are expected to be  recognized  in pension
     expense during the year ended December 31, 2007.


--------------------------------------------------------------------------------
                                      F-25

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 11 - Benefit Plans (Continued)

Pension Plan (Continued)

<TABLE>
<CAPTION>
                                                                        Years Ended December 31,
                                                               -------------------------------------------
                                                               2006               2005                2004
                                                               ----               ----                ----
                                                                            (In Thousands)
<S>                                                          <C>                <C>                 <C>
          Net periodic pension expense
               Service cost                                    $345               $282                $289
               Interest cost                                    450                412                 387
               Expected return on assets                       (596)              (511)               (471)
               Amortization of:
                   Unrecognized transition obligation             -                 23                  46
                   Unrecognized prior service liability          60                 60                  60
                   Unrecognized loss                             67                 30                  47
                                                               ----               ----                ----

          Total pension expense                                $326               $296                $358
                                                               ====               ====                ====

          Discount rate                                        5.88%              5.88%               6.25%
          Salary increase rate                                 4.00%              3.50%               4.00%
</TABLE>

Plan Asset Allocations

     The  Bank's  pension  plan  weighted-average  asset  allocations,  by asset
category, are as follows:

<TABLE>
<CAPTION>
                                                                                           October 1,
                                                                                   -------------------------
                                                                                   2006                 2005
                                                                                   ----                 ----
<S>                                                                                  <C>                  <C>
          Equity securities                                                          73 %                 72 %
          Debt securities (Bond Mutual Funds)                                        27                   28
                                                                                    ---                  ---
                                                                                    100 %                100 %
                                                                                    ===                  ===
</TABLE>

Long-Term Rate of Return

     The long term rate of return on assets  assumption  is based on  historical
     returns earned by equities and fixed income securities, adjusted to reflect
     expectations  of future returns as applied to the plan's target  allocation
     of asset classes. Equities and fixed income securities were assumed to earn
     real rates of return in the ranges of 5-9% and 2-6%, respectively. The long
     term  inflation  rate was  estimated  to be 3%. When these  overall  return
     expectations are applied to the plan's target allocation,  the result is an
     expected rate of return of 8% to 10%.

Contributions

     For the  fiscal  year  ending  December  31,  2007,  the  Bank  expects  to
contribute approximately $214,500 to the Plan.

--------------------------------------------------------------------------------
                                      F-26

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 11 - Benefit Plans (Continued)

Estimated Future Benefit Payments

     Benefit payments, which reflect expected future service as appropriate, are
     expected  to be  paid  for the  years  ended  December  31 as  follows  (in
     thousands):

                            2007                                      $  389
                            2008                                         436
                            2009                                         533
                            2010                                         546
                            2011                                         546
                            2012 - 2016                                2,984

Incremental  Effect of  Applying  SFAS No. 158 on  Individual  Line Items in the
Consolidated Statements of Financial Condition

<TABLE>
<CAPTION>
                                                                                     December 31, 2006
                                                               ---------------------------------------------------------------
                                                                                       (In Thousands)
                                                                     Before                                After Application
                                                                 Application of         Application           of SFAS 158
                                                                    SFAS 158            of SFAS 158
                                                               -------------------    ----------------     -------------------
<S>                                                                 <C>                   <C>                 <C>
Deferred tax asset - pension                                                -                526                    526
Total assets                                                          875,555                526                876,081
Liability for pension benefits                                              -              1,316                  1,316
Total liabilities                                                     640,111              1,316                641,427
Accumulated Other Comprehensive Income                                  5,091               (790)                 4,301
Total Stockholders' Equity                                            235,444               (790)               234,654
</TABLE>


Savings and Investment Plan ("SIP")

     The Bank sponsors a SIP pursuant to Section 401(k) of the Internal  Revenue
     Code, for all eligible employees.  Employees may elect to save a percentage
     of their  compensation up to statutory limits which the Bank will match 50%
     of the first 6% of the employee's contribution. The SIP expense amounted to
     approximately  $120,000,  $116,000,  and  $107,000  during the years  ended
     December 31, 2006, 2005 and 2004, respectively.

Officers' Supplemental Pension Plans

     The Bank has unfunded,  non-qualified supplemental pension plans to provide
     supplemental  pension  benefits to each senior  officer  ("Officer") of the
     Bank. The plans provide for annual  payments for ten years  commencing when
     each Officer reaches retirement age, as defined,  or in the event of death,
     disability or termination of employment,  prior to retirement. The Bank has
     accrued approximately $1,761,000 and $1,358,000 as of December 31, 2006 and
     2005, respectively,  towards this liability. Expense recorded for the plans
     totaled  approximately  $437,000,  $447,000,  and $423,000 during the years
     ended  December 31,  2006,  2005 and 2004,  respectively.  During the years
     ended December 31, 2006, 2005 and 2005 payments were paid to  beneficiaries
     and to  individuals  who  terminated  their  employment in the amounts of $
     34,000, $ 16,000 and $ 0, respectively.

--------------------------------------------------------------------------------
                                      F-27

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 11 - Benefit Plans (Continued)

Employee Stock Ownership Plan

     Effective upon  completion of the Company's  initial  public  offering July
     2006, the Bank  established  an Employee Stock  Ownership Plan ("ESOP") for
     all eligible  employees  who complete a  twelve-month  period of employment
     with the Bank,  have  attained  the age of 21 and  complete  at least 1,000
     hours of service in a plan year. The ESOP used  $8,117,500 in proceeds from
     a term loan obtained from the Company to purchase 811,750 shares of Company
     common  stock.  The  term  loan  principal  is  payable  over 60  quarterly
     installments  through June 30, 2021.  The interest rate on the term loan is
     8.25%. Each year, the Bank intends to make  discretionary  contributions to
     the ESOP, which will be equal to principal and interest  payments  required
     on the term loan. The loan may be further  repaid with  dividends  paid, if
     any, on the unallocated Company common stock owned by the ESOP.

     Shares  purchased  with the loan proceeds  provide  collateral for the term
     loan  and are held is a  suspense  account  for  future  allocations  among
     participants.  Contributions  to the  ESOP  and  shares  released  from the
     suspense account are to be allocated among the participants on the basis of
     compensation, as described by the Plan, in the year of allocation.

     The ESOP is accounted for in accordance  with  Statement of Position  93-6,
     "Accounting  for Employee Stock  Ownership  Plans," which was issued by the
     American  Institute  of Certified  Public  Accountants.  Accordingly,  ESOP
     shares  pledged as  collateral  were  initially  recorded as unearned  ESOP
     shares in the consolidated  statements of financial condition.  Thereafter,
     on  a  quarterly  basis,  13,529  shares  are  committed  to  be  released,
     compensation expense is recorded equal to the number of shares committed to
     be released times the monthly  average market price of the shares,  and the
     committed  shares become  outstanding for basic net income per common share
     computations.  ESOP  compensation  expense for the year ended  December 31,
     2006 was approximately  $414,000.  The status of Company shares in the ESOP
     at December 31, 2006 is as follows:


                           Allocated shares                                 -
                           Shares committed to be released             27,058
                           Unearned shares                            784,692
                                                                  -----------

                                    Total ESOP Shares                 811,750
                                                                  ===========

                           Fair value of unearned shares          $12,994,500
                                                                  ===========

--------------------------------------------------------------------------------
                                      F-28

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 12 - Income Taxes

The Bank qualifies as a thrift  institution under the provisions of the Internal
Revenue Code and  therefore  must  calculate  its tax bad debt  deduction  using
either the  experience  or  specific  charge off  method.  Retained  earnings at
December  31, 2006 and 2005,  includes  approximately  $5.8  million of bad debt
deduction  for tax purposes for which  income taxes have not been  provided.  If
such  amount is used for  purposes  other  than for bad debt  losses,  including
distributions  in  liquidation,  it will be  subject  to income  tax at the then
current rate.

The components of income taxes are summarized as follows:

<TABLE>
<CAPTION>
                                                                                       Years Ended December 31,
                                                                               ---------------------------------------------
                                                                                2006              2005                2004
                                                                               ------            ------              ------
                                                                                             (In Thousands)
<S>                                                                          <C>                <C>                 <C>
          Current tax expense:
               Federal income                                                  $3,126             $3,274              $3,479
               State income                                                       568                444                 952
                                                                               ------             ------              ------

                                                                                3,694              3,718               4,431
                                                                               ------             ------              ------
          Deferred tax expense (benefit):
               Federal income                                                  (1,100)                96                (131)
               State income                                                      (200)                38                 (44)
                                                                               ------             ------              ------

                                                                               (1,300)               134                (175)
                                                                               ------             ------              ------

                                                                               $2,394             $3,852              $4,256
                                                                               ======             ======              ======
</TABLE>


The following table presents a reconciliation  between reported income taxes and
the income taxes which would be computed by applying the federal income tax rate
of 35% to income before income taxes:

<TABLE>
<CAPTION>
                                                                                        Years Ended December 31,
                                                                               ---------------------------------------------
                                                                                2006               2005                2004
                                                                               ------             ------              ------
                                                                                             (In Thousands)
<S>                                                                          <C>                <C>                 <C>
          Federal income tax                                                   $2,675             $3,985              $4,154
          Increases (reductions) in taxes resulting from:
               New Jersey income tax, net of federal income
                     tax effect                                                   239                313                 590
               Tax exempt interest on obligations of state and
                     political subdivisions                                      (164)              (162)               (169)
               Bank owned life insurance                                         (191)              (179)               (186)
               Surtax exemption                                                  (100)              (100)               (100)
               Other items, net                                                   (65)                (5)                (33)
                                                                               ------             ------              ------

          Total income tax expense                                             $2,394             $3,852              $4,256
                                                                               ======             ======              ======

          Effective income tax rate                                              31.3%              33.8%               35.9%
                                                                               ======             ======              ======
</TABLE>

--------------------------------------------------------------------------------
                                      F-29

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 12 - Income Taxes (Continued)

The effective  income tax rate  represents  total income tax expense  divided by
income before income taxes.  The  Investment Co.  commenced  operations in 2004.
Under New Jersey tax law, the  Investment  Co. is subject to a 3.6% state income
tax rate as  compared  to the 9.0% tax rate to which  the  Company  and Bank are
subject.  The presence of the Investment Co. during the years ended December 31,
2006 and 2005,  resulted in income tax  savings of  approximately  $366,000  and
$281,000,  respectively,  and reduced the consolidated effective income tax rate
by 4.8% and 2.5%, respectively.

The tax effects of  existing  temporary  differences  that give rise to deferred
income tax assets and liabilities are as follows:

<TABLE>
<CAPTION>
                                                                             December 31,
                                                                       ---------------------------
                                                                        2006                2005
                                                                       -------             -------
                                                                             (In Thousands)
<S>                                                                   <C>               <C>
          Deferred loan fees                                            $   29            $     45
          Allowance for loss on loans and other reserves                   451                 348
          Uncollected interest and late fees                                21                  29
          Retirement benefits                                              697                 538
          Accumulated other comprehensive income-Pension                   526                   -
          Charitable contributions                                         965                   -
          ESOP                                                              53                   -
          Unrealized loss on securities available for sale                  69                   -
          Other items                                                       21                   -
                                                                       -------             -------

                 Total Deferred Tax Assets                               2,282                 960
                                                                       -------             -------

          Goodwill and other items                                         (26)                (36)
          Pension expense                                                 (318)               (347)
          Depreciation                                                    (490)               (476)
          Capitalized interest                                            (163)               (161)
          Unrealized gain on securities available for sale                   -                 (29)
                                                                       -------             -------

                 Total Deferred Tax Liabilities                           (997)             (1,049)
                                                                       -------             -------

                 Net Deferred Tax Assets (Liabilities)                 $ 1,835             $   (89)
                                                                       =======             =======
</TABLE>

Note 13 - Commitments and Contingencies

The Bank is a party to financial instruments with  off-balance-sheet risk in the
normal course of business to meet the financing  needs of its  customers.  These
financial  instruments  include commitments to extend credit and standby letters
of credit. Those instruments involve, to varying degrees, elements of credit and
interest  rate risk in excess  of the  amount  recognized  in the  statement  of
financial  condition.  The  contract  or notional  amounts of those  instruments
reflect  the  extent  of  involvement  the Bank  has in  particular  classes  of
financial instruments.

The Bank's exposure to credit loss in the event of  nonperformance  by the other
party to the financial  instrument for  commitments to extend credit and standby
letters of credit written is represented by the contractual notional


--------------------------------------------------------------------------------
                                      F-30

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 13 - Commitments and Contingencies (Continued)

amount of those  instruments.  The Bank uses the same credit  policies in making
commitments  and  conditional   obligations  as  it  does  for  on-balance-sheet
instruments.

Commitments  to extend  credit are  agreements  to lend to a customer as long as
there is no violation of any condition established in the contract.  Commitments
generally  have fixed  expiration  dates or other  termination  clauses  and may
require  payment of a fee. Since many of the  commitments are expected to expire
without  being  drawn  upon,  the total  commitment  amounts do not  necessarily
represent future cash requirements.

The Bank evaluates each customer's creditworthiness on a case-by-case basis. The
amount of collateral obtained, if deemed necessary by the Bank upon extension of
credit,  is  based  on  management's  credit  evaluation  of  the  counterparty.
Collateral held varies but primarily includes  residential and  income-producing
real estate.

Commitments  to  purchase  securities  are  contracts  for  delayed  delivery of
securities  in which the seller  agrees to make  delivery at a specified  future
date of a specified instrument,  at a specified price or yield. Risks arise from
the possible  inability of  counterparties  to meet the terms of their contracts
and from movements in securities values and interest.

The Bank had loan origination commitments outstanding as follows:

<TABLE>
<CAPTION>
                                                  December 31,
                     --------------------------------------------------------------------
                                        2006                              2005
                     --------------------------------    --------------------------------
                           Rate Range          Amount        Rate Range            Amount
                           ----------          ------        ----------            ------
                                               (Dollars In Thousands)
<S>                   <C>                    <C>          <C>                  <C>
Mortgage loans:
     Fixed rate         5.875% to 6.875%       $1,888       5.38% to 8.25%       $ 1,862
     Adjustable rate     5.75% to 9/25%           720     5.5% to Prime +.5%       4,650
Equity loans:
     Fixed rate         5.875% to 7.375%        2,590       4.95% to 6.45%         3,056
     Floating rate       5.99% to 8.25%           389     Initial Rate 3.14%       1,351
                                               ------                            -------

                                               $5,587                            $10,919
                                               ======                            =======
</TABLE>

At December 31, 2006 and 2005,  undisbursed  funds from approved lines of credit
under a homeowners' equity lending program amounted to approximately $31,524,000
and $33,815,000,  respectively. The interest rate charged for any month on funds
disbursed under this program is prime plus 1.50% to prime less .50%. At December
31, 2006 and 2005,  undisbursed funds from approved  commercial lines of credit,
both  secured  and  unsecured,   amounted  to   approximately   $12,529,000  and
$7,486,000,  respectively.  The interest rates charged on funds  disbursed under
this program range from prime to prime plus 4.25%.  Unless they are specifically
cancelled  by notice  from the Bank,  these  funds  represent  firm  commitments
available to the respective borrowers on demand.

In June 2002, the Bank entered into an employment  agreement  with Mr.  Perilli,
Chairman of the Board and executive vice president, to accommodate Mr. Perilli's
desire to continue  providing  his services to the Bank while  reducing his time
commitment as a full-time officer and employee of the Bank. The agreement became
effective  July 1, 2002.  Mr.  Perilli's  salary on July 1, 2002 became his base
salary.  Pursuant to the terms of the  agreement,  from July 1, 2002 to June 30,
2003, Mr. Perilli's annual salary was fixed at 90% of his base salary, from July
1,


--------------------------------------------------------------------------------
                                      F-31

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 13 - Commitments and Contingencies (Continued)

2003 to June  2004,  Mr.  Perilli's  annual  salary was fixed at 80% of his base
salary,  from July 1, 2004 to June 30, 2005,  Mr.  Perilli's  annual  salary was
fixed at 70% of his base  salary,  and from July 1, 2005 to June 30,  2007,  Mr.
Perilli's  salary  is  fixed  at 50% of his  base  salary.  In the  event of Mr.
Perilli's  death  prior  to June 30,  2007,  the Bank  will pay his  estate  the
aggregate  of all unpaid  salary from the date of death  through  June 30, 2007.
Pursuant  to the  terms of this  agreement,  Mr.  Perilli  is  eligible  for all
benefits  and  perquisites   provided  to  employees  and  executive  management
employees of the Bank, including bonuses.

The Bank had previously  sold real estate on which it had  established an escrow
for potential environmental  remediation liabilities.  Remediation was completed
and no  additional  claims  were made  against the Bank.  The escrow  balance of
$100,000  was  closed  and is  reflected  in  other  noninterest  income  in the
consolidated statement of income for the year ended December 31, 2005.

The Company and its subsidiaries,  from time to time, may be party to litigation
which arises  primarily in the  ordinary  course of business.  In the opinion of
management,  the  ultimate  disposition  of such  litigation  should  not have a
material effect on the consolidated financial statements.


Note 14 - Fair Value of Financial Instruments

The fair value of financial  instruments  is the amount at which the  instrument
could be exchanged in a current transaction between willing parties,  other than
a forced liquidation sale. Significant estimates were used to develop fair value
data. Fair value estimates, methods and assumptions are set forth below.

Cash and Cash Equivalents, Interest Receivable and Accrued Interest Payable

     The carrying amounts for cash and cash equivalents, interest receivable and
     accrued interest payable  approximate fair value because they mature or are
     due in three months or less.

Securities

     The  fair  values  for  both  held  to  maturity  and  available  for  sale
     mortgage-backed  and  investment   securities,   including  commitments  to
     purchase  such  securities,  are  based on quoted  market  prices or dealer
     prices,  if  available.  If quoted  market  prices or dealer prices are not
     available,  fair value is estimated  using quoted  market  prices or dealer
     prices for similar securities.

Loans Receivable

     The fair value of loans  receivable is estimated by discounting  the future
     cash flows, using the current rates at which similar loans would be made to
     borrowers   with  similar   credit  ratings  and  for  the  same  remaining
     maturities, of such loans.

Deposits

     The fair value of demand,  savings and club accounts is equal to the amount
     payable on demand at the reporting  date. The fair value of certificates of
     deposit is estimated by discounting future cash flows using rates currently
     offered  for  deposits  of  similar  remaining  maturities.  The fair value
     estimates do not include the benefit that results from the low-cost funding
     provided by deposit liabilities  compared to the cost of borrowing funds in
     the market.


--------------------------------------------------------------------------------
                                      F-32

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 14 - Fair Value of Financial Instruments (Continued)

Federal Home Loan Bank of New York Advances

     Fair  value is  estimated  using  rates  currently  offered  for assets and
     liabilities of similar  remaining  maturities,  or when  available,  quoted
     market prices.

Loan Commitments

     The fair value of commitments  to originate  loans and to fund unused lines
     of credit is  estimated  using the fees  currently  charged  to enter  into
     similar  agreements,  taking  into  account  the  remaining  terms  of  the
     agreements  and the present  creditworthiness  of the  counterparties.  For
     fixed-rate  loan  commitments,  fair value also  considers  the  difference
     between  current  levels of interest  rates and the  committed  rates.  The
     carrying  value,  represented  by the net  deferred  fee  arising  from the
     unrecognized commitment,  and the fair value, determined by discounting the
     remaining  contractual  fee  over  the term of the  commitment  using  fees
     currently  charged to enter into similar  credit risk,  are not  considered
     material for disclosure.  The contractual  amounts of unfunded  commitments
     are presented in Note 13 to financial statements.

The carrying  amounts and estimated fair values of financial  instruments are as
follows:

<TABLE>
<CAPTION>
                                                                                    December 31,
                                                          -------------------------------------------------------
                                                                  2006                                  2005
                                                          ----------------------           ----------------------
                                                                       Estimated                         Estimated
                                                          Carrying        Fair             Carrying        Fair
                                                            Value         Value              Value         Value
                                                          --------      --------           --------      --------
                                                                           (In Thousands)
<S>                                                     <C>           <C>                <C>           <C>
Financial assets:
     Cash and cash equivalents                            $ 64,701      $ 64,701           $ 28,089      $ 28,089
     Securities available for sale                          19,331        19,331             15,514        15,514
     Investment securities held to maturity                169,927       167,934            173,078       169,484
     Mortgage-backed securities held to maturity           144,480       142,757            150,101       148,111
     Loans receivable                                      420,382       418,846            378,708       373,927
     Interest receivable                                     4,598         4,598              3,798         3,798

Financial liabilities:
     Deposits                                              625,972       624,752            643,813       641,150
     Federal Home Loan Bank of New York Advances             7,863         7,654              9,702         9,539
     Accrued interest payable                                1,247         1,247                850           850
</TABLE>

Limitations

     The fair  value  estimates  are made at a  discrete  point in time based on
     relevant   market   information   and   information   about  the  financial
     instruments.  Fair value estimates are based on judgments  regarding future
     expected loss experience, current economic conditions, risk characteristics
     of various financial  instruments,  and other factors.  These estimates are
     subjective in nature and involve  uncertainties  and matters of significant
     judgment and,  therefore,  cannot be determined with precision.  Changes in
     assumptions  could  significantly   affect  the  estimates.   Further,  the
     foregoing  estimates  may not  reflect  the  actual  amount  that  could be
     realized

--------------------------------------------------------------------------------
                                      F-33

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 14 - Fair Value of Financial Instruments (Continued)

Limitations

     if all or substantially  all of the financial  instruments were offered for
     sale.  This is due to the fact that no market exists for a sizable  portion
     of the loan, deposit and off balance sheet instruments.

     In  addition,  the fair value  estimates  are based on existing  on-and-off
     balance sheet financial instruments without attempting to value anticipated
     future  business  and the  value of  assets  and  liabilities  that are not
     considered  financial  instruments.  Other significant  assets that are not
     considered  financial assets include  premises and equipment.  In addition,
     the tax  ramifications  related to the realization of the unrealized  gains
     and losses can have a significant  effect on fair value  estimates and have
     not been considered in any of the estimates.

     Finally, reasonable comparability between financial institutions may not be
     likely due to the wide range of permitted valuation techniques and numerous
     estimates which must be made given the absence of active secondary  markets
     for many of the  financial  instruments.  This  lack of  uniform  valuation
     methodologies   introduces  a  greater  degree  of  subjectivity  to  these
     estimated fair values.


Note 15 - Formation of Mutual Holding Company and Stock Offering

On July 28, 2004,  the Board of Directors of Roma Bank ("RB")  adopted a Plan of
Reorganization  from a Federal  Mutual  Savings Bank to a Federal Mutual Savings
Bank Holding  Company (the  "Plan").  Pursuant to the Plan,  RB  reorganized  as
follows:

     1.   RB organized an interim  federal stock savings bank as a  wholly-owned
          subsidiary ("Interim One").

     2.   Interim One  organized  an interim  federal  stock  savings  bank as a
          wholly-owned subsidiary ("Interim Two").

     3.   Interim  One  organized  a  federal  stock   corporation  (SHC)  as  a
          wholly-owned subsidiary of Interim One.

     4.   RB exchanged its charter for a federal stock savings bank charter (the
          "Bank").

     5.   Interim One cancelled its outstanding  stock and exchanged its charter
          for a federal mutual holding company charter (MHC).

     6.   Interim Two merged with and into the Bank, with the Bank surviving.

     7.   Former members of RB became members of the MHC.

     8.   MHC  (formerly  Interim One)  received all of the stock of the Bank in
          exchange for its shares of Interim Two stock.

     9.   The MHC transferred all of the outstanding shares of the Bank to SHC.

The Plan was  approved  by the  Office of Thrift  Supervision.  Additionally,  a
letter  of  non-objection  was  received  from  the  Federal  Deposit  Insurance
Corporation.

A special  meeting of depositors  of RB ("Special  Meeting") was held to approve
the Plan.

--------------------------------------------------------------------------------
                                      F-34

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 15 - Formation of Mutual Holding Company and Stock Offering (Continued)

Following  the  completion  of  the  Reorganization,   all  depositors  who  had
membership or liquidation  rights with respect to the Bank continue to have such
rights  solely with respect to the MHC as long as they  continue to hold deposit
accounts with the Bank.

On July 11, 2006,  the Company  completed a minority  stock offering in which it
sold 9,819,562 shares, or 30% of its outstanding common stock, including 811,750
shares to the  Employee  Stock  Ownership  Plan.  The  remaining  70% is held as
follows:  69% of the  outstanding  common  stock  or  shares  are  owned by Roma
Financial Corporation,  MHC and 1% or 327,318 shares were contributed to and are
owned by the Roma Bank Community Foundation, Inc.

Note 16 - Parent Only Financial Information

The  Company  operates  its  wholly-owned  subsidiary,  the Bank and the  Bank's
wholly-owned  subsidiaries.  The  consolidated  earnings of the subsidiaries are
recognized by the Company using the equity  method of  accounting.  Accordingly,
the consolidated earnings of the subsidiaries are recorded as an increase in the
Company's  investment  in the  subsidiaries.  The  following  are the  condensed
financial statements for the Company (Parent Company only) as December 31, 2006,
and for the year ended December 31, 2006.

--------------------------------------------------------------------------------
                                      F-35

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 16 - Parent Only Financial Information (Continued)

                   CONDENSED STATEMENTS OF FINANCIAL CONDITION

<TABLE>
<CAPTION>
                                                                                                        December 31,
                                                                                                ----------------------------
                                                                                                  2006                 2005
                                                                                                --------            --------
                                                                                                        (In Thousands)
<S>                                                                                           <C>                 <C>
                                            Assets
          Cash and amounts due from depository institutions                                     $ 32,674            $    800
          Investment in subsidiaries                                                             183,964             137,858
          Securities available for sale                                                            3,390                   -
          Securities held to maturity                                                              4,999                   -
          ESOP loan receivable                                                                     7,976                   -
          Other assets                                                                             1,689                   -
                                                                                                --------            --------

                                                                                                $234,692            $138,658
                                                                                                ========            ========

                             Liabilities and Stockholders' Equity

          Other Liabilities                                                                     $     38            $      -
          Stockholders' equity                                                                   234,654             138,658
                                                                                                --------            --------
                                                                                                $234,692            $138,658
                                                                                                ========            ========
</TABLE>

<TABLE>
<CAPTION>
                         CONDENSED STATEMENTS OF INCOME

                                                                                                               From Inception
                                                                                               Year Ended      to December 31,
                                                                                            December 31, 2006       2005
                                                                                         ------------------------------------
                                                                                                   (In Thousands)
<S>                                                                                             <C>                 <C>
          Interest income                                                                         $1,288              $    -
          Equity in undistributed earnings of the subsidiaries                                     6,531               7,535
                                                                                                  ------              ------
                                                                                                   7,819               7,535

          Other expenses                                                                           3,464                   -
          Income before income tax                                                                 4,358               7,535
          Income tax (benefit)                                                                      (890)                  -
                                                                                                  ------              ------

                    Net Income                                                                    $5,248              $7,535
                                                                                                  ======              ======
</TABLE>

--------------------------------------------------------------------------------
                                      F-36

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 16 - Parent Only Financial Information (Continued)

                       CONDENSED STATEMENTS OF CASH FLOWS

<TABLE>
<CAPTION>
                                                                                                                  From
                                                                                              Year Ended       Inception to
                                                                                              December 31,     December 31,
                                                                                                 2006             2005
                                                                                         -------------------------------------
                                                                                                    (In Thousands)
<S>                                                                                             <C>                 <C>
          Cash Flows from Operating Activities
               Net income                                                                         $5,248              $7,535
               Adjustments to reconcile net income to net cash provided by (used in)
               operating activities:
                   Equity in undistributed earnings of the subsidiaries                           (6,531)             (7,535)
                     Increase in other assets                                                     (1,689)                  -
                     Increase in other liabilities                                                    38                   -
                                                                                                 -------             -------

                 Net Cash Provided by (used in) Operating Activities                              (2,934)                  -

          Cash Flows Provided by Financing Activities
                 Loan to ESOP                                                                     (8,117)                  -
                 Repayment of loan to ESOP                                                           141                   -
                 Purchase of
                      Available for sale securities                                               (3,580)                  -
                      Held to maturity securities                                                 (4,999)                  -
                 Capital contribution to subsidiary                                              (48,035)                  -
                                                                                                 -------             -------

               Issuance of common stock                                                           99,398                 800
                                                                                                 -------             -------

                Net cash provided by Financing Activities                                        348,008                   -

                 Net Increase in Cash and Cash Equivalents                                        31,874                 800

          Cash and Cash Equivalents - Beginning                                                      800                   -
                                                                                                 -------             -------

          Cash and Cash Equivalents - Ending                                                     $32,674             $   800
                                                                                                 =======             =======
</TABLE>

--------------------------------------------------------------------------------
                                      F-37

<PAGE>
Roma Financial Corporation and Subsidiaries
--------------------------------------------------------------------------------
Notes to Consolidated Financial Statements


Note 17 - Quarterly Financial Data (Unaudited)

<TABLE>
<CAPTION>
                                                                             Year Ended December 31, 2006
                                                          ------------------------------------------------------------------
                                                            First              Second             Third              Fourth
                                                           Quarter             Quarter           Quarter             Quarter
                                                           -------             -------           -------             -------
                                                                                    (In Thousands)
<S>                                                        <C>                <C>               <C>                 <C>
Interest income                                             $9,311             $9,871            $10,674             $11,013
Interest expense                                             3,551              3,805              3,779               4,055
                                                            ------             ------             ------              ------

       Net Interest Income                                   5,760              6,066              6,895               6,958

Provision for loan losses                                       57                 79                 97                  58
                                                            ------             ------             ------              ------

       Net Interest Income after Provision for
           Loan Losses                                       5,703              5,987              6,798               6,900

Non-interest income                                            628                929              1,017                 886
Non-interest expenses                                        4,274              4,469              7,847               4,616
                                                            ------             ------             ------              ------

       Income before Income Taxes                            2,057              2,447                (32)              3,170

Income taxes                                                   697                858               (133)                972
                                                            ------             ------             ------              ------

       Net Income                                           $1,360             $1,589               $101              $2,198
                                                            ======             ======               ====              ======
</TABLE>

<TABLE>
<CAPTION>
                                                                             Year Ended December 31, 2005
                                                          ------------------------------------------------------------------
                                                            First              Second             Third              Fourth
                                                           Quarter             Quarter           Quarter             Quarter
                                                           -------             -------           -------             -------
                                                                                    (In Thousands)
<S>                                                        <C>                <C>               <C>                 <C>
Interest income                                             $8,108             $8,439             $8,755              $9,330
Interest expense                                             2,090              2,564              2,847               3,400
                                                            ------             ------             ------              ------

       Net Interest Income                                   6,018              5,875              5,908               5,930

Provision for loan losses                                      (16)               (87)                82                 149
                                                            ------             ------             ------              ------

       Net Interest Income after Provision for
           Loan Losses                                       6,034              5,962              5,826               5,781

Non-interest income                                            439                657                978                 842
Non-interest expenses                                        3,456              3,621              3,856               4,199
                                                            ------             ------             ------              ------

       Income before Income Taxes                            3,017              2,998              2,948               2,424

Income taxes                                                 1,050                996              1,051                 755
                                                            ------             ------             ------              ------

       Net Income                                           $1,967             $2,002             $1,897              $1,669
                                                            ======             ======             ======              ======
</TABLE>

--------------------------------------------------------------------------------
                                      F-38

<PAGE>


                                   SIGNATURES

         Pursuant to the  requirements  of Section 13 or 15(d) 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 as of March 9, 2007.

                                    ROMA FINANCIAL CORPORATION


                                     By:   /s/Peter A. Inverso
                                           -------------------------------------
                                           Peter A. Inverso
                                           President and Chief Executive Officer
                                           (Duly Authorized Representative)

         Pursuant to the  requirement  of the  Securities  Exchange Act of 1934,
this report has been signed below on March 9, 2007 by the  following  persons on
behalf of the registrant and in the capacities indicated.

<TABLE>
<CAPTION>
<S>                                                <C>
  /s/  Peter A. Inverso                               /s/Maurice T. Perilli
  -----------------------------------------------     -------------------------
  Peter A. Inverso                                    Maurice T. Perilli
  President, Chief Executive Officer and Director     Chairman of the Board and
  (Principal Executive Officer)                       Executive Vice President

  /s/  Simon H. Belli                                 /s/Louis A. Natale
  -----------------------------------------------     -------------------------
  Simon H. Belli                                      Louis A. Natale
  Director                                            Director

  /s/  Rudolph A. Palombi                             /s/Robert H. Rosen
  -----------------------------------------------     -------------------------
  Rudolph A. Palombi                                  Robert H. Rosen
  Director                                            Director

  /s/  Michele N. Siekerka                            /s/Sharon L. Lamont
  -----------------------------------------------     -------------------------
  Michele N. Siekerka                                 Sharon L. Lamont
  Director                                            Chief Financial Officer
                                                      (Principal Financial and Accounting Officer)
</TABLE>