April 23, 2009

FOR IMMEDIATE RELEASE FOR FURTHER INFORMATION

Bethlehem, Pa. Contact Joseph T. Svetik, President

610-691-2233

First Star Bancorp, Inc. reported net income for the quarter ended March 31, 2009, of $1,134,000, representing an increase of $575,000, or 102.9% as compared to net income of $559,000 for the three months ended March 31, 2008. Net interest income for the three months ended March 31, 2009, was $2,410,000, representing an increase of $274,000, or 12.8%, as compared to net interest income of $2,046,000 for the three months ended March 31, 2008. First Star Bancorp, Inc. had assets of $645.2 million at March 31, 2009, as compared to $670.3 million at June 30, 2008

First Star Bancorp, Inc. reported a net loss for the nine months ended March 31, 2009, of $5,735,000 compared to net income of $2,168,000 for the nine months ended March 31, 2008. The loss was primarily due to a write-down in value of certain Collateralized Mortgage Obligations and FNMA and FHLMC Preferred Stocks as required by Financial Accounting Standard 157 that were deemed to be other than temporarily impaired (OTTI). The write-down amount was $7,912,0000, net of taxes during the previous quarter ended December 31, 2008. Excluding the write-down net income for the nine months ended March 31, 2009 would have been $2,177,000. Net interest income for the nine months ended March 31, 2009 was $7,281,000, representing an increase of $341,000, or 4.9% compared to net interest income of $6,940,000 for the nine months ended March 31, 2008.

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, 2009. 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.

The company has capital that exceeds the amounts that are required by the FDIC in order to be “well capitalized”.

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 March 31, 2009	At June 30, 2008
Total assets..................................................	$645,186	$670,298
Cash and cash equivalents.............................	80,233	13,661
Investment securities.....................................	87,055	113,578
Mortgage-backed securities ..........................	228,177	304,925
Loans receivable, net....................................	211,188	209,235
Deposits.......................................................	363,780	339,034
Borrowings...................................................	250,439	288,267
Stockholder’s equity......................................	25,114	35,244
Non-performing assets..................................	$ 3,579	$ 4,185

Selected Operations Data:

	Three Months Ended March 31,			Nine Months Ended March 31,
	2009	2008		2009	2008
Interest and dividend income.....	$7,745		$7,682	$24,338		$24,240
Interest expense ...........................	5,335		5,546	17,057		17,300
Net interest income..................	2,410		2,136	7,281		6,940
Provision for loan losses.............	-		90	-		165
Net interest income after provision for loan losses..........	2,410		2,046	7,281		6,775
Other income.................................	871		369	(10,950)		881
Other expense................................	1,835		1,693	5,384		4,697
Income before taxes......................	1,446		722	(9,053)		2,959
Provision for income taxes..........	312		163	(3,318)		791
Net Income................................	1,134		559	(5,735)		2,168
Earnings (loss) per share basic	$0.93		$0.34	$(5.13)		$2.26
Earnings (loss) per share diluted	$0.52		$0.21	$(2.65)		$1.35