Exhibit 10.3

                        Long-Term Care Insurance Program
                        --------------------------------

      In January 2005, Penn Federal Savings Bank (the "Bank") adopted a
long-term care insurance program to be offered on a voluntary basis to all
employees, officers and directors of the Bank. The program provides a nursing
home care benefit at $200.00 per day, to be adjusted for inflation. Bank
officers Joseph L. LaMonica, Patrick D. McTernan, Jeffrey J. Carfora and Claire
M. Chadwick, and non-employee Bank directors William C. Anderson, Marvin D.
Schoonover and Mario Teixeira, Jr., participate in this program. These
participating officers and directors will be provided with this benefit for
their lifetimes at no cost to them, with the Bank paying the related premiums
over a ten-year period. All other employees who choose to participate must pay
the cost of their participation. The other employees may elect to pay their
premiums over ten years, over twenty years or over their lifetimes and may
choose to receive the benefit for three years, for five years or for their
lifetimes.