SE Financial Corp. Announces Third Quarter 2008 Results

PHILADELPHIA--(Business Wire)--
SE Financial Corp. (trading symbol:SEFL) (the "Company"), the
holding company for St. Edmond's Federal Savings Bank, announced net
income of $59.7 thousand for the three months ended July 31, 2008 as
compared to net income of $77.6 thousand for the same period last
year. For the nine months ended July 31, 2008, the Company announced
net income of $23.9 thousand compared to a net loss of $3.5 thousand
for the same period last year.

-- Total assets for the quarter were $268.6 million, an increase
of $34.8 million as compared to total assets at April 30, 2008
of $233.9 million, representing annualized growth of 59%.

-- Net interest income increased 15.55% for the quarter ending
July 31, 2008 as compared to the quarter ending April 30,
2008. The net interest margin increased 2 basis points to
2.90% for the quarter ended July 31, 2008 versus 2.88% for the
quarter ended April 30, 2008.

-- During the quarter loans receivable, net increased $32.2
million to $186.6 million at July 31, 2008, as compared to
loans, net at April 30, 2008, representing an 83.41% increase
on an annualized basis. The increase occurred mainly in
one-to-four family mortgage loans. The yield on loans for the
quarter ended July 31, 2008 decreased 36 basis points as
compared to the quarter ended April 30, 2008 primarily due to
a decrease in rates on construction loans and lines of credit
tied to the prime rate and the growth in 1-4 family
residential mortgage loans. The growth in the residential
portfolio represents loans to borrowers for the purchase of
homes in the Bank's primary lending area. Our lending pipeline
continues to remain strong due to the efforts of both our
lending staff and retail banking market managers and is also
benefiting from customers who are choosing to conduct business
with a community bank where lending decisions are made
locally. St. Edmond's Federal Savings Bank has a 96-year
history of serving South Philadelphia and the surrounding
markets. The pipeline contains a mix of residential mortgage
loans, commercial real estate loans, residential construction
loans, home equity loans and lines, and real-estate secured
commercial and industrial loans for businesses within our
local market areas.

-- While focused on growth, we also remain committed to
maintaining credit quality in the loan portfolio. To that end,
procedures include adherence to sound underwriting standards
and loan portfolio management procedures, including aggressive
monitoring of delinquency, on-going credit file reviews and
independent external loan review. The ratio of total
non-performing assets (consisting of loans delinquent over 90
days) to total assets was 6 basis points at July 31, 2008
compared to 8 basis points at April 30, 2008. As of July 31,
2008 the over 90 day delinquent loans totaled $173.7 thousand
and was comprised of one 1-4 family residential mortgage loan.
The Bank does not engage in sub-prime lending and has not been
affected directly by the sub-prime mortgage crisis that has
caused such turmoil in the financial industry. As of July 31,
2008 the Bank had no real estate owned as a result of
foreclosures. Loans classified as substandard totaled $3.4
million at July 31, 2008 versus $973 thousand at April 30,
2008. The increase was primarily due to one single family
construction loan. The property has been completed and is
currently marketed for sale. The loan has matured and is over
60 days delinquent in interest payments. The Bank is
aggressively pursuing collection, and current appraisals
indicate excess collateral to cover all amounts due.

-- Despite continued competitive pricing in the Bank's market
areas, deposits increased $16.4 million during the quarter
representing a 37% increase on an annualized basis, comprising
increases in savings accounts of $1.9 million, certificates of
deposit of $2.1 million and checking accounts of $17.0
million, offset by a decrease in money market accounts of $4.6
million. Our newest neighborhood banking office in Drexel
Hill, Delaware County, PA which was opened on April 5th, 2008,
has quickly established a foothold in the community over its
first four months of operation. Due to the successful efforts
of the branch staff, deposits total in excess of $11 million
with over 406 accounts, significantly exceeding expectations.
This location has also benefited from the unique approach of
the presence of Crossroads Coffee as a subtenant,
incorporating a coffee shop within the premises to share
common lobby and lounge areas and adding a traffic-driving
dynamic to attract new customers. The Bank's total deposits at
July 31, 2008 were $193.7 million. The average cost of
deposits decreased 25 basis points to 3.61% for the quarter
ended July 31, 2008 as compared to 3.86% for the quarter ended
April 30, 2008 due to the Bank's aggressive repricing of
maturing certificates of deposit at lower rates and the focus
on the collection of lower costing deposits.

-- The decrease in equity is due mainly to the increase in the
unrealized loss on investment securities as a result of
changes in the interest rate environment. The investment
portfolio consists primarily of Fannie Mae, Freddie Mac, and
GNMA mortgage-backed securities.

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SE FINANCIAL CORP.
UNAUDITED QUARTER HIGHLIGHTS
(Dollars in Thousands)

QTR QTR $ Increase % Increase
7/31/2008 4/30/2008 (Decrease) (Decrease)
-----------------------------------------------
Total Assets 268,643 233,853 34,790 14.88%
-----------------------------------------------
Investment Securities 61,280 62,054 (774) -1.25%
-----------------------------------------------
Loans 186,556 154,362 32,194 20.86%
-----------------------------------------------
Deposits 193,689 177,291 16,398 9.25%
-----------------------------------------------
Borrowings 51,662 32,478 19,184 59.07%
-----------------------------------------------
Equity 22,372 23,474 (1,102) -4.69%
-----------------------------------------------
Interest Income 3,611 3,271 340 10.39%
-----------------------------------------------
Interest Expense 1,919 1,807 112 6.20%
-----------------------------------------------
Net Interest Income 1,692 1,464 228 15.57%
-----------------------------------------------
Provision 202 71 131 184.51%
-----------------------------------------------
Noninterest Income 143 118 25 21.19%
-----------------------------------------------
Noninterest Expense 1,540 1,542 (2) -0.13%
-----------------------------------------------
Net Income (Loss) 60 (8) 68 -850.00%
-----------------------------------------------
Net Interest Margin 2.90% 2.88% 0.02% 0.69%
-----------------------------------------------
Yield on Loans 6.72% 7.08% -0.36% -5.08%
-----------------------------------------------
Yield on Investments 4.94% 4.79% 0.15% 3.13%
-----------------------------------------------
Cost of Deposits 3.61% 3.86% -0.25% -6.48%
-----------------------------------------------
Cost of Borrowings 3.27% 3.54% -0.27% -7.63%
-----------------------------------------------
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Comparison of the Results of Operations for the Three Months Ended
July 31, 2008 and July 31, 2007

For the three-month periods ended July 31, 2008 and 2007, net
interest income before provision for loan losses totaled $1.7 million
and $1.3 million, respectively. The average balance of
interest-earning assets increased $60.4 million to $233.5 million for
the three months ended July 31, 2008 as compared to $173.1 million for
the three months ended July 31, 2007, offset by a decrease in the net
interest margin of 18 basis points to 2.90% for the three months ended
July 31, 2008 from 3.08% for the three months ended July 31, 2007.

The provision for loan losses increased $173.5 thousand to $201.6
thousand for the three months ended July 31, 2008 versus $28.1
thousand for the three months ended July 31, 2007.

Non-interest income was $143.3 thousand for the three months ended
July 31, 2008 compared to $116.9 thousand for the three months ended
July 31, 2007. The increase of $26.5 thousand was due mainly to
increases of $18.0 thousand on service fees on deposit accounts, $5.7
thousand on earnings on bank-owned life insurance and $23.8 thousand
in other income comprising mostly of rental income for office space in
our Ardmore banking location.

Non-interest expense increased $160.0 thousand to $1.5 million for
the three months ended July 31, 2008 compared to $1.4 million for the
three months ended July 31, 2007. The increase in non-interest expense
was due mainly to increases in compensation and employee benefits and
occupancy and equipment costs. The $79.8 thousand increase in
compensation and employee benefits was due primarily to additions to
staff, higher payroll taxes and employee benefits expense, and an
increase in RSP expense of $26.8 thousand. The $61.2 thousand increase
in occupancy and equipment costs was due to an increase in
depreciation, rent expense, utilities and maintenance expense related
to the opening of the new banking office in Drexel Hill, Pennsylvania
in April 2008.

Comparison of the Results of Operations for the Nine Months Ended
July 31, 2008 and July 31, 2007

For the nine month periods ended July 31, 2008 and 2007, net
interest income before provision for loan losses totaled $4.5 million
and $3.6 million, respectively. The increase of $839.9 thousand was
due to an increase in the average balance of interest-earning assets
of $39.7 million to $209.8 million for the nine months ended July 31,
2008 as compared to $170.1 million for the nine months ended July 31,
2007, but was slightly offset by a decrease in the net interest margin
of 4 basis points to 2.87% for the nine months ended July 31, 2008
from 2.91% for the nine months ended July 31, 2007.

The provision for loan losses increased $346.9 thousand to $373.6
thousand for the nine months ended July 31, 2008 versus $26.7 thousand
for the nine months ended July 31, 2007.

Non-interest income was $480.1 thousand for the nine months ended
July 31, 2008 compared to $422.3 thousand for the nine months ended
July 31, 2007. The increase of $57.8 thousand was due mainly to
increases of $62.8 thousand in service fees on deposit accounts, $15.6
thousand in earnings on bank-owned life insurance and $38.8 thousand
in other income comprising mostly of rental income for office space in
our Ardmore banking location.

Non-interest expense increased $396.7 thousand to $4.6 million for
the nine months ended July 31, 2008 compared to $4.2 million for the
nine months ended July 31, 2007. The increase in non-interest expense
was due mainly to increases in compensation and employee benefits and
occupancy and equipment costs offset by a decrease in professional
fees and other expense. The $263.3 thousand increase in compensation
and employee benefits was due primarily to additions to staff and
higher payroll taxes and employee benefits expense as well as an
increase in RSP expense of $81.6 thousand over the prior year. The
$144.4 thousand increase in occupancy and equipment costs was due to
an increase in depreciation, utilities and maintenance expense related
to the opening of the new banking office in Drexel Hill, Pennsylvania
in April 2008.

Comparison of Financial Condition at July 31, 2008 and October 31,
2007

Total assets increased $70.4 million to $268.6 million at July 31,
2008 as compared to $198.3 million at October 31, 2007. Cash and cash
equivalents increased $595.5 thousand to $5.2 million at July 31, 2008
from $4.6 million at October 31, 2007 due primarily to outstanding
official checks to fund loans. Loans receivable increased $50.4
million to $186.6 million at July 31, 2008 from $136.2 million at
October 31, 2007. Deposits increased $29.4 million to $193.7 million
at July 31, 2008 from $164.3 million at October 31, 2007. Borrowed
money increased $42.3 million to $51.7 million at July 31, 2008 from
$9.4 million at October 31, 2007 due to the $20 million in leverage
executed at a weighted average spread of approximately 200 basis
points as well as an increase in overnight borrowings to fund the loan
growth over the quarter. Stockholders' equity decreased $1.6 million
to $22.4 million at July 31, 2008 from $24.0 million at October 31,
2007 due mainly to the change in the market value of the available for
sale investment and mortgage-backed portfolios, the repurchase of
51,000 shares of Treasury stock, as well as dividends paid for the
period slightly offset by shares released quarterly for the ESOP and
RSP plans.

Company Information

SE Financial Corp. is the holding company for St. Edmond's Federal
Savings Bank, a federally chartered stock savings institution with six
Neighborhood Banking Offices serving South Philadelphia, Roxborough,
Ardmore and Drexel Hill, Pennsylvania and Deptford and Sewell, New
Jersey. SE Financial Corp. is incorporated under the laws of the
Commonwealth of Pennsylvania and its executive offices are located at
1901-03 East Passyunk Avenue, Philadelphia, Pennsylvania 19148. As of
July 31, 2008, there were issued and outstanding 2,203,095 shares of
common stock, par value $0.10 per share of SE Financial Corp.
Registrar and Transfer Company serves as the transfer agent for SE
Financial Corp. and its address is 10 Commerce Drive, Cranford, New
Jersey 07016.

Senior Management: Pamela M. Cyr, President and CEO, J.
Christopher Jacobsen, EVP and Chief Operating Officer, Charles F.
Miller, EVP and Chief Lending and Credit Officer, and Caroline H.
Doyle Chief Financial Officer.

Board of Directors: Marcy C. Panzer (Chairman), Samuel Barsky
(Secretary), Charles M. Cahn, Andrew A. Hines, Megan L. Mahoney, J. W.
Parker, Jr., CPA, William F. Saldutti, III, Susanne Spinell Shuster,
CPA.

Forward-Looking Statements Disclaimer

This news release contains forward-looking statements as that term
is defined in the Private Securities Litigation Reform Act of 1995.
Any statement that is not a historical fact is a forward-looking
statement. Such forward-looking statements are subject to risk and
uncertainties, which could cause actual results to differ materially
from those currently anticipated due to a number of factors.

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SE FINANCIAL CORP.

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Selected Income
Statement Data
(Unaudited)
(Dollars in
thousands except Three Months Ended Nine Months Ended
per share data) July 31, July 31,
------------------------- ------------------------
2008 2007 2008 2007
------------ ------------ ------------ -----------
Interest income $ 3,611 $ 3,060 $ 10,049 $ 8,585
Interest
expense 1,919 1,732 5,578 4,953
------------ ------------ ------------ -----------
Net interest
income 1,692 1,328 4,471 3,632
Provision for
(recovery of)
loan losses 202 28 374 27
------------ ------------ ------------ -----------
Net interest
income after
provision for
(recovery of)
loan losses 1,490 1,300 4,097 3,605
Noninterest
income 143 117 480 422
Noninterest
expense 1,539 1,380 4,573 4,177
------------ ------------ ------------ -----------
Income (loss)
before taxes 94 37 4 (150)
Income tax
(benefit)
expense 34 (41) (20) (147)
------------ ------------ ------------ -----------
Net income
(loss) $ 60 $ 78 $ 24 $ (3)
============ ============ ============ ===========

Weighted
average shares
outstanding
(1)
Basic 1,858,129 1,901,010 1,873,476 1,905,969
Diluted 1,925,560 1,901,010 1,970,812 1,905,969
Earnings per
share - basic
(1) $ 0.03 $ 0.04 $ 0.01 $ 0.00
Earnings per
share -
diluted (1) $ 0.03 $ 0.04 $ 0.01 $ 0.00

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Performance Ratios Three Months Ended Nine Months Ended
(Unaudited) July 31, July 31,
------------------------- ------------------------
2008 2007 2008 2007
------------ ------------ ------------ -----------
Return on
average assets
(2) 0.10% 0.17% 0.01% -0.06%
Return on
average equity
(2) 1.04% 1.31% 0.14% -0.45%
Net interest
margin on
average
interest
earning assets
(2)(3) 2.90% 3.11% 2.87% 2.91%

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Selected Balance Sheet Data (Unaudited)
(Dollars in thousands except per share data) July 31, October 31,
2008 2007
------------ -----------
Assets $ 268,643 $ 198,260
Loan receivable, net 186,556 136,176
Cash and cash equivalents 5,204 4,609
Investment securities 61,280 45,277
Deposits 193,689 164,280
FHLB borrowings 51,662 9,429
Total stockholders' equity 22,372 23,967
Ending shares outstanding (1) 1,863,974 1,893,365
Book value per share (1) 12.00 12.66
Stockholders' equity to total assets 8.33% 12.09%

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Asset Quality (Unaudited)
(Dollars in thousands) July 31, October 31,
2008 2007
------------ -----------
Non-performing assets (4) $ 174 $ 447
Allowance for losses 1,416 1,161
Non-performing assets to total assets 0.06% 0.23%
Allowance for losses to total loans 0.76% 0.85%
Allowance for losses to non-performing
assets 813.79% 259.83%

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(1) Shares outstanding does not include unreleased ESOP shares,
unearned nonvested RSP shares, or shares held in the Stock
Compensation Trust for purposes of the weighted average shares
outstanding calculation and the ending shares outstanding
calculation.

(2) Annualized for the three and nine months ended July 31, 2008 and
2007.

(3) The yield on municipal securities has been adjusted to a tax-
equivalent basis.

(4) Non-performing assets include non-accrual loans and real estate
owned.
*T

SE Financial Corp.
Pamela M. Cyr
President and CEO
(215) 468-1700

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