July 13, 2007

FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION

Bethlehem, Pa. Contact Joseph T. Svetik, President

610-691-2233

First Star Bancorp, Inc. reported annual results for the fiscal year ended June 30, 2007 of $3,244,000, an increase of $791,000, or 32.25%, as compared to net income of $2,453,000 for the fiscal year ended June 30, 2006. The increase is partly attributable to gain on sale of securities. Net interest income for the fiscal year ended June 30, 2007 was $9,327,000, representing an increase of $268,000, or 2.96%, as compared to net interest income of $9,059,000 for the fiscal year ended June 30, 2006.

First Star Bancorp, Inc. also reported net income for the three months ended June 30, 2007 of $614,000, representing a decrease of $50,000, or 7.53%, as compared to net income of $664,000 for the three months ended June 30, 2006. Net interest income for the three months ended June 30, 2007 was $2,258,000 a decrease of $63,000, or 2.71%, as compared to net interest income of $2,321,000 for the three months ended June 30, 2006. . First Star Bancorp, Inc. had assets of $555.3 million at June 30, 2007.

The company also reported that it contributed approximately $300,000 to its employee stock ownership plan trust during the fiscal year ending June 30, 2007. The employee stock ownership plan trust will purchase a corresponding amount of the stock of the company in open market transactions from time to time during the fiscal year and utilize such company contributions and/or borrowed funds to effect such stock purchases.

First Star Bancorp, Inc. is the holding company for First Star Savings Bank which serves the Lehigh Valley through its main office in Bethlehem and branch offices in Alburtis, Allentown, Bath, Nazareth, Palmer Township and Wind Gap. Deposits at First Star are insured up to the legal maximum (generally, $250,000 per depositor) by the Federal Deposit Insurance Corporation (FDIC).

FIRST STAR BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share data)

Selected Financial Data:

	At June 30, 2007	At June 30, 2006
Total assets..................................................	$555,348	$591,966
Cash and cash equivalents.............................	3,576	6,340
Investment securities.....................................	145,444	126,696
Mortgage-backed securities ..........................	162,257	198,543
Loans receivable, net....................................	227,248	239,858
Deposits.......................................................	354,515	351,059
Borrowings...................................................	155,600	202,321
Stockholder’s equity......................................	38,625	32,318
Non-performing loans....................................	3,626	1,930
Non-performing assets..................................	$ 0	$ 164

Selected Operations Data:

	Three Months Ended June 30,			Fiscal Year Ended June 30,
	2007	2006		2007	2006
Interest and dividend income.....	$7,996		$7,899	$32,746		$29,782
Interest expense ..........................	5,738		5,578	23,419		20,723
Net interest income.................	2,258		2,321	9,327		9,059
Provision for loan losses............	150		0	371		65
Net interest income after provision for loan losses.........	2,108		2,321	8,956		8,994
Other income.................................	244		203	1,773		928
Other expense...............................	1,482		1,569	6,070		6,460
Income before taxes.....................	870		955	4,659		3,462
Provision for income taxes..........	256		291	1,415		1,009
Net Income...............................	614		664	3,244		2,453
Earnings per share basic	$1.02		$1.11	$5.43		$4.10
Earnings per share diluted	$0.63		$0.67	$3.23		$2.47