Advance Financial Bancorp (AFBC)

Advance Financial Bancorp serves as the holding company for Advance Financial Savings Bank (the Bank). The Company conducts no significant business or operations of its own other than holding all of the outstanding stock of the Bank. The Bank operates a traditional savings bank business, attracting deposit accounts from the general public and using those deposits, together with other funds, primarily to originate and invest in loans secured by one- to four-family residential real estate, non-residential real estate and consumer and commercial assets. To a lesser extent, the Bank also originates multi-family real estate loans.

For the three months ended 9/30/04, interest income fell 6% to $4.11 million. Net interest income after loan loss prov. rose 2% to $2.2 million. Net income fell 19% to $530 thousand. Results reflect an decrease in earnings on loans, improved interest margins and lower income taxes and other expenses.