THE CORPORATE LIBRARY

Related Party Transactions and Outside Related Director Information

PennFed Financial Services, Inc. (PFSB)

9/23/2005 Proxy Information

The Bank has followed a policy of granting loans to eligible directors, officers, employees and members of their immediate families for the financing of their personal residences and for consumer or business purposes. All loans by the Bank to its senior officers and directors are subject to regulations of the Office of Thrift Supervision restricting loans and other transactions with affiliated persons of the Bank. Under applicable law, all loans or extensions of credit to executive officers and directors must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with the general public and must not involve more than the normal risk of repayment or present other unfavorable features. In this regard, all outstanding loans to the Bank's directors and senior officers have been made in the ordinary course of business and on the same terms, including collateral and interest rates, as those prevailing at the time for comparable transactions and did not involve more than the normal risk of collectibility.

Mr. LaMonica has two sons who are employed by the Bank. Andrew P. LaMonica is currently Second Vice President/Underwriting Manager and has been employed by the Bank since 1993. Peter J. LaMonica has been employed by the Bank since 1995 and is currently the Residential Lending Service Manager. During fiscal 2005, Andrew LaMonica earned a salary of $73,248 and incentives/cash bonuses of $14,188. During fiscal 2005, Peter LaMonica earned a salary of $56,280 and incentives/cash bonuses of $10,439.