-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
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 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 Vr33KMxgr7eCScsQIrF51Fa1YOA8ojHaME+IbE9VyfUKJMOgTPW4hxKzOMsQSWtU
 PsdOwmlgP07CyGFpfpYJrA==

<SEC-DOCUMENT>0000914317-03-002354.txt : 20030811
<SEC-HEADER>0000914317-03-002354.hdr.sgml : 20030811
<ACCEPTANCE-DATETIME>20030811165510
ACCESSION NUMBER:		0000914317-03-002354
CONFORMED SUBMISSION TYPE:	4
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20030807
FILED AS OF DATE:		20030811

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			FLANNERY BARBARA A
		CENTRAL INDEX KEY:			0001201445

	FILING VALUES:
		FORM TYPE:		4
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-24040
		FILM NUMBER:		03835058

	MAIL ADDRESS:	
		STREET 1:		C/O PENNFED FINANCIAL SERVICES INC
		STREET 2:		622 EAGLE ROCK AVENUE
		CITY:			WEST ORANGE
		STATE:			NJ
		ZIP:			07052

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PENNFED FINANCIAL SERVICES INC
		CENTRAL INDEX KEY:			0000920945
		STANDARD INDUSTRIAL CLASSIFICATION:	SAVINGS INSTITUTION, FEDERALLY CHARTERED [6035]
		IRS NUMBER:				223297339
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			0630

	BUSINESS ADDRESS:	
		STREET 1:		622 EAGLE ROCK AVE
		CITY:			WEST ORANGE
		STATE:			NJ
		ZIP:			07052
		BUSINESS PHONE:		2016697366

	MAIL ADDRESS:	
		STREET 1:		622 EAGLE ROCK AVE
		CITY:			WEST ORANGE
		STATE:			NJ
		ZIP:			07052
</SEC-HEADER>
<DOCUMENT>
<TYPE>4
<SEQUENCE>1
<FILENAME>form4-53743_bflanneryex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<!-- - EDGAR Ease Plus 1.0                                   07/25/03  TT    -->
<ownershipDocument>
    <schemaVersion>X0201</schemaVersion>

    <documentType>4</documentType>
   <periodOfReport>2003-08-07</periodOfReport>
   <notSubjectToSection16>0</notSubjectToSection16>
    <issuer>
        <issuerCik>0000920945</issuerCik>
        <issuerName>PENNFED FINANCIAL SERVICES INC</issuerName>
        <issuerTradingSymbol>PFSB</issuerTradingSymbol>
   </issuer>
   <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001201445</rptOwnerCik>
            <rptOwnerName>FLANNERY BARBARA A</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O PENNFED FINANCIAL SERVICES INC</rptOwnerStreet1>
            <rptOwnerStreet2>622 EAGLE ROCK AVENUE</rptOwnerStreet2>
            <rptOwnerCity>WEST ORANGE</rptOwnerCity>
            <rptOwnerState>NJ</rptOwnerState>
            <rptOwnerZipCode>07052</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
            <reportingOwnerRelationship>
         <isDirector>0</isDirector>
         <isOfficer>1</isOfficer>
         <isTenPercentOwner>0</isTenPercentOwner>
         <isOther>1</isOther>
         <officerTitle>Executive VP</officerTitle>
         <otherText>and Retail Group Exec.</otherText>
      </reportingOwnerRelationship>
   </reportingOwner>
 <nonDerivativeTable>
   <nonDerivativeTransaction>
      <securityTitle>
         <value>Common Stock</value>
      </securityTitle>
      <transactionDate>
         <value>2003-08-07</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>M</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>2000</value>
         </transactionShares>
         <transactionPricePerShare>
           <value>5.25</value>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>A</value>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>16910</value>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
            <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </nonDerivativeTransaction>
   <nonDerivativeHolding>
      <securityTitle>
         <value>Common Stock</value>
      </securityTitle>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>19263</value>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
            <value>I</value>
         </directOrIndirectOwnership>
         <natureOfOwnership>
            <value>By ESOP</value>
         </natureOfOwnership>
      </ownershipNature>
   </nonDerivativeHolding>
 </nonDerivativeTable>
 <derivativeTable>
   <derivativeTransaction>
      <securityTitle>
         <value>Option to Purchase</value>
      </securityTitle>
      <conversionOrExercisePrice>
         <value>5.25</value>
      </conversionOrExercisePrice>
      <transactionDate>
         <value>2003-08-07</value>
      </transactionDate>
      <transactionCoding>
         <transactionFormType>4</transactionFormType>
         <transactionCode>M</transactionCode>
         <equitySwapInvolved>0</equitySwapInvolved>
      </transactionCoding>
      <transactionAmounts>
         <transactionShares>
           <value>2000</value>
         </transactionShares>
         <transactionPricePerShare>
           <value>5.25</value>
         </transactionPricePerShare>
         <transactionAcquiredDisposedCode>
           <value>D</value>
         </transactionAcquiredDisposedCode>
      </transactionAmounts>
      <exerciseDate>
            <footnoteId id="F1"/>
      </exerciseDate>
      <expirationDate>
         <value>2004-10-28</value>
      </expirationDate>
      <underlyingSecurity>
         <underlyingSecurityTitle>
           <value>Common Stock</value>
         </underlyingSecurityTitle>
         <underlyingSecurityShares>
           <value>2000</value>
         </underlyingSecurityShares>
      </underlyingSecurity>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>26550</value>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
           <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </derivativeTransaction>
   <derivativeHolding>
      <securityTitle>
         <value>Option to Purchase</value>
      </securityTitle>
      <conversionOrExercisePrice>
         <value>17.1875</value>
      </conversionOrExercisePrice>
      <exerciseDate>
            <footnoteId id="F2"/>
      </exerciseDate>
      <expirationDate>
         <value>2007-12-09</value>
      </expirationDate>
      <underlyingSecurity>
         <underlyingSecurityTitle>
           <value>Common Stock</value>
         </underlyingSecurityTitle>
         <underlyingSecurityShares>
           <value>15000</value>
         </underlyingSecurityShares>
      </underlyingSecurity>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>15000</value>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
           <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </derivativeHolding>
   <derivativeHolding>
      <securityTitle>
         <value>Option to Purchase</value>
      </securityTitle>
      <conversionOrExercisePrice>
         <value>16.8125</value>
      </conversionOrExercisePrice>
      <exerciseDate>
         <value>1999-07-27</value>
      </exerciseDate>
      <expirationDate>
         <value>2009-07-27</value>
      </expirationDate>
      <underlyingSecurity>
         <underlyingSecurityTitle>
           <value>Common Stock</value>
         </underlyingSecurityTitle>
         <underlyingSecurityShares>
           <value>3084</value>
         </underlyingSecurityShares>
      </underlyingSecurity>
      <postTransactionAmounts>
         <sharesOwnedFollowingTransaction>
           <value>3084</value>
         </sharesOwnedFollowingTransaction>
      </postTransactionAmounts>
      <ownershipNature>
         <directOrIndirectOwnership>
           <value>D</value>
         </directOrIndirectOwnership>
      </ownershipNature>
   </derivativeHolding>
 </derivativeTable>
   <footnotes>
      <footnote id="F1"> The option became exercisable in 20% increments on April 28, 1995, 1996, 1997, 1998 and 1999, respectively.</footnote>

      <footnote id="F2"> One-third of the option vested immediately upon grant, an additional one-third vested on December 9, 1998 and the remaining one-third vested on December 9, 1999.</footnote>
   </footnotes>
   <ownerSignature>
      <signatureName>/s/ Barbara A. Flannery</signatureName>
      <signatureDate>2003-08-11</signatureDate>
   </ownerSignature>
</ownershipDocument>

</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----