FIRST AMENDMENT TO AGREEMENT AND PLAN OF MERGER

                 FIRST AMENDMENT TO AGREEMENT AND PLAN OF MERGER

     THIS FIRST  AMENDMENT TO AGREEMENT  AND PLAN OF MERGER (this  "Amendment"),
dated  as of  September  29,  2009,  is  made  and  entered  into  by and  among
MIDATLANTIC BANCORP,  INC., a Virginia corporation  ("MidAtlantic"),  GAF MERGER
CORP.,  a Virginia  corporation  ("Merger Sub") and Greater  Atlantic  Financial
Corp., a Delaware corporation ("Greater Atlantic").

     WHEREAS,  MidAtlantic,  Merger Sub and  Greater  Atlantic  entered  into an
Agreement and Plan of Merger, dated as of June 15, 2009 (the "Agreement"); and

     WHEREAS, pursuant to the terms of the Agreement,  Merger Sub will be merged
into Greater Atlantic with Greater Atlantic surviving the merger (the "Merger");
and

     WHEREAS,  Section  7.1(d)  of the  Agreement  provides  that  the  Board of
Directors of Greater  Atlantic or MidAtlantic may terminate the Agreement in the
event the Merger is not consummated by September 30, 2009; and

     WHEREAS,  pursuant to Section 8.3 of the  Agreement,  MidAtlantic,  Greater
Atlan