AMENDMENT TO EMPLOYMENT AGREEMENT
                       ---------------------------------


         Subsection  (b) of  Section  8 of the  Employment  Agreement  made  and
entered into as of July 14, 1994 by and between  Penn  Federal  Savings Bank and
Lucy T. Tinker is hereby amended to read as follows:

               (b)  Definitions.  For  purposes  of Sections 8, 9 and 11 of this
         Agreement, "Date of Termination" means the earlier of (i) the date upon
         which the Bank gives notice to the Employee of the  termination  of his
         employment  with  the Bank or (ii) the date  upon  which  the  Employee
         ceases to serve as an Employee of the Bank,  and "change in control" is
         defined solely as any acquisition of contro (other than pursuant to the
         Conversion or by a trustee or other fiduciary holding  securities under
         an employee  benefit plan of the Holding Compnay or a subsidiary of the
         Holding  Company),  as defined in 12 C.F.R. SS. 574.4, or any successor
         regulation,  of the Bank or Holding  Company  which  would  require the
         filing of an application for acquisition of control or notice of change
         in  control  in a manner as set forth in 12 C.F.R.  SS.  574.3,  or any
         successor regulation.

         IN WITNESS  WHEREOF,  the parties have  executied  this Amendment as of
this 13th day of October, 1998.

                                                      PENN FEDERAL SAVINGS BANK

                                                 By:  /s/William C. Anderson
                                                      ----------------------
                                                      William C. Anderson
                                                      Chairman of the Board

                                                      EMPLOYEE


                                                 By:  /s/Lucy T. Tinker
                                                      ---------------------
                                                      Lucy T. Tinker