February 1, 2012

FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION

Bethlehem, Pa. Contact Joseph T. Svetik, President

610-691-2233

First Star Bancorp, Inc. reported a net loss for the six months ended December 31, 2011 of $446,000, a decrease of $945,000, as compared to a net loss of $1,391,000 for the six months ended December 31, 2010. The loss is primarily due to a write-down to market value of certain Collateralized Mortgage Obligations held by the company. The write-down amount was $1,963,000. Net interest income for the six months ended December 31, 2011 was $3,748,000, representing an increase of $751,000, or 25.06%, as compared to net interest income of $2,997,000 for the six months ended December 31, 2010.

First Star Bancorp, Inc. also reported a net loss for the quarter ended December 31, 2011 of $307,000, representing a decrease of $871,000 as compared to a net loss of $1,178,000 for the three months ended December 31, 2010. The loss is attributable primarily to a write-down to market value of certain Collateralized Mortgage Obligations. The write-down amount was $1,335,000.. Net interest income for the three months ended December 31, 2011 was $1,969,000, representing an increase of $330,000, or 20.13%, as compared to net interest income of $1,639,000 for the three months ended December 31, 2010. First Star Bancorp, Inc. had assets of $424.0 million at December 31, 2011 as compared to $436.6 million at June 30, 2011.

On December 22, 2011, First Star Bancorp, Inc. and ESSA Bancorp, Inc. announced the execution of a definitive merger agreement for ESSA to acquire First Star for approximately $24.2 million, or approximately $11.20 per share based on ESSA Bancorp’s closing price of $10.50 per share on December 21, 2011. Subject to regulatory and shareholder approvals the transaction would close in mid-2012.

The company also reported that it expects to contribute approximately $350,000 to its employee stock ownership plan trust during the fiscal year ending June 30, 2012. 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, New Tripoli 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).

Forward Looking Statements/Safe Harbor Provision

This release contains “forward-looking statements” that are based on assumptions and may describe future plans, strategies and expectations of the Company. These forward-looking statements are generally identified by the use of the words “believe,” “expect,” “intend,” “anticipate,” “estimate,” “project” or similar expressions. The Company’s ability to predict results or the actual effect of future plans or strategies is inherently uncertain. Factors that could have a material adverse effect on the operations of the Company and its subsidiaries include, but are not limited to, changes in market interest rates, regional and national economic conditions, legislative and regulatory changes, monetary and fiscal policies of the United States government, including policies of the loan or investment portfolios, demand for loan products, deposit flows, competition, demand for financial services in the Company’s market area, changes in the real estate market values in the Company’s market area, ability to operate new branch offices profitably and changes in relevant accounting principles and guidelines. These risks and uncertainties should be considered in evaluating any forward-looking statements and undue reliance should not be placed on such statements. Except as required by applicable law or regulation, the Company does not undertake, and specifically disclaims any obligation, to release publicly the result of any revisions that may be made to any forward-looking statements to reflect events or circumstances after the date of the statements or to reflect the occurrence

FIRST STAR BANCORP, INC.

CONSOLIDATED FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in thousands, except per share data)

Selected Financial Data:

	At Dec 31, 2011	At June 30, 2011
Total assets..................................................	$423,953	$436,552
Cash and cash equivalents..........................	73,580	66,756
Investment securities...................................	76,197	87,982
Mortgage-backed securities ........................	33,761	36,585
Loans receivable, net..................................	208,346	209,179
Deposits......................................................	325,174	327,553
Borrowings..................................................	65,964	76,711
Stockholder’s equity...................................	27,213	27,827
Non-performing loans.................................	5,441	5,880
Non-performing assets................................	$ 638	$ 5,282

Selected Operations Data:

	Three Months Ended December 31,			Six Months Ended December 31,
	2011	2010		2011	2010
Interest and dividend income....	$3,725		$4,197	$7,370		$8,359
Interest expense ..........................	1,756		2,558	3,622		5,362
Net interest income.................	1,969		1,639	3,748		2,997
Provision for loan losses.............	-		-	-		-
Net interest income after provision for loan losses..........	1,969		1,639	3,748		2,997
Other income................................	(665)		(1,558)	(796)		(1,356)
Other expense...............................	1,806		1,897	3,666		3,799
Income before taxes...................	(502)		(1,816)	(714)		(2,158)
Provision for income taxes.........	(195)		(638)	(268)		(767)
Net Income..............................	(307)		(1,178)	(446)		(1,391)
Earnings per share basic	$(0.31)		$(1.08)	$(0.48)		$(1.32)
Earnings per share diluted	$(0.14)		$(0.55)	$(0.20)		$(0.64)