November 2, 2010

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 three months ended September 30, 2010 of $213,000, a decrease of $265,000, or 55.4%, as compared to a net loss of $478,000 for the three months ended September 30, 2009. The improvement is primarily due to a reduction in the loan loss provision of $850,000. No loan loss provision was needed for the three months ended September 30, 2010. Net interest income for the three months ended September 30, 2010 was $1,358,000, representing a decrease of $541,000, or 28.5%, as compared to net interest income of $1,899,000 for the three months ended September 30, 2009. First Star Bancorp, Inc. had assets of $529.37 million at September 30, 2010 as compared to $516.74 million at June 30, 2010.

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, 2011. 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 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 Sept 30, 2010	At June 30, 2010
Total assets..................................................	$529,367	$516,742
Cash and cash equivalents..........................	107,023	97,733
Investment securities...................................	137,112	135,327
Mortgage-backed securities ........................	39,906	42,170
Loans receivable, net..................................	211,003	206,598
Deposits......................................................	359,077	334,055
Borrowings..................................................	139,664	149,987
Stockholder’s equity...................................	27,893	27,397
Non-performing loans.................................	9,790	6,540
Non-performing assets................................	$ 612	$ 631

Selected Operations Data:

	Three Months Ended Sept 30,
	2010	2009
Interest and dividend income....	$4,162		$6,427
Interest expense ..........................	2,804		4,528
Net interest income.................	1,358		1,899
Provision for loan losses.............	-		850
Net interest income after provision for loan losses..........	1,358		1,049
Other income................................	202		125
Other expense...............................	1,902		1,938
Income (loss) before taxes.........	(342)		(764)
Provision (benefit) for income taxes. ……………..	(129)		(286)
Net Income (loss)....................	(213)		(478)
Earnings (loss) per share basic	$(0.24)		$(0.47)
Earnings (loss) per share diluted	$(0.09)		$(0.22)