ROMA Roma Green Finance Ltd

Roma Financial Corporation (Nasdaq:ROMA) (the "Company"), the holding company of Roma Bank and RomAsia Bank, announced today its financial condition and results of operations for the three months and year ended December 31, 2011.

"During 2011, mildly improved economic conditions spawned modest improvement in new loan demand, but governmental intervention to constrain long term interest rates placed continued stress on our interest margin. Additionally, the level of non-performing loans remains stubbornly high as additions during the year outpaced the speed with which judicial resolutions occurred. Nevertheless, we are pleased to report that consolidated financial results were much improved over 2010. Our balance sheet continued to grow, reflecting record levels in virtually every category, while maintaining regulatory capital at well-capitalized levels," commented Peter A. Inverso, President and CEO.  

The Company's consolidated net income for the year ended December 31, 2011, was up $1.9 million, or 36.7%, to $7.0 million, while net income for the fourth quarter 2011 was up 31.1% to $1.6 million, compared to the fourth quarter of 2010. Net income on a per share basis was $0.23 per diluted share, compared to $0.17 per diluted share last year.

Despite a modest reduction in the annual average net interest margin, net interest income improved in 2011 but declined slightly in the fourth quarter. For the three months and year ended December 31, 2011, net interest income was $13.1 million and $52.8 million, compared to $13.2 million and $46.1 million for the same periods in 2010. For the year ended December 31, 2011, this represented an increase of 14.3%, over the prior year.

Net income in 2011 principally benefitted from the $6.6 million improvement in net interest income and a $2.4 million reduction in loan loss provisions. Earnings in the prior year had benefitted from a $2.2 million recovery of virtually all of an impairment charge taken in 2009 on an available for sale equity security. 

At December 31, 2011, the Company had consolidated assets, deposits, gross loans and equity of $1.9 billion, $1.6 billion, $0.98 billion and $218.0 million, respectively.

Non-performing loans inched up to 4.59% of total loans and represented 2.38% of total assets at December 31, 2011, from 4.44% and 2.22%, respectively, in 2010. "Management is intently focused on converting these loans into earning assets," said Inverso. 

"It is noteworthy, that the Office of the Comptroller of the Currency (OCC) became the federal regulator of the Company's banks during 2011, replacing the Office of Thrift Supervision (OTS). Unlike the OTS, the OCC strongly prefers that specific reserves not be carried as a component of the allowance for loan loss, but rather that the loan impairment be recognized by reducing the carrying value of the corresponding loan. Accordingly, in the fourth quarter, $5.2 million of specific reserves carried by Roma Bank were written off. As a result, the consolidated allowance for loan losses, together with the unused credit marks against loans acquired in the Sterling Bank acquisition, fell to 36.6% of non-performing loans and 1.8% of total loans at the end of the year, compared to 60.5% and 2.6%, respectively, at the end of 2010," Inverso stated. 

In closing, Inverso commented, "Throughout the economic tempest of the last three plus years, our Company has continued to reinvest our shareholders' and our depositors' funds into our communities, and grown while remaining well capitalized. As a premier community bank, we take pride in these accomplishments." 

Shares of the Company began trading on July 12, 2006, on the NASDAQ Global Select Market under the symbol "ROMA."

Roma Financial Corporation (Nasdaq:ROMA) is the holding company of Roma Bank, a community bank headquartered in Robbinsville, New Jersey, and RomAsia Bank headquartered in South Brunswick, New Jersey. Roma Bank has been serving families, businesses and the communities of Central New Jersey for over 91 years with a complete line of financial products and services, and today Roma Bank operates branch locations in Mercer, Burlington, Camden and Ocean counties in New Jersey. Visit Roma online at www.romabank.com, or RomAsia Bank at www.romasiabank.com. RomAsia Bank has two branch locations in Middlesex County, New Jersey.

Forward Looking Statements

The foregoing material contains forward-looking statements concerning the financial condition, results of operations and business of the Company. We caution that such statements are subject to a number of uncertainties and actual results could differ materially, and, therefore, readers should not place undue reliance on any forward-looking statements. The Company does not undertake, and specifically disclaims, any obligation to publicly release the results of any revisions that may be made to any forward-looking statements to reflect the occurrence of anticipated or unanticipated events or circumstances after the date of such statements.

CONTACT: Peter A. Inverso
         President & CEO
         609 223 8310