Exhibit 13**LETTER TO THE STOCKHOLDERS**Dear Stockholder:     At a time when bank stock investors’ usual concern for earnings growth is matched with anequal concern over asset quality, I am pleased to report favorably on both. While interest rateswere not particularly cooperative this past year and competition for deposits and creditworthyloans was particularly fierce, earnings benefited from steps taken in the past and from continuedfocus on our limited array of core businesses.Earnings Growth     Because last year’s earnings were reduced by a major restructuring of the investmentportfolio, surpassing last year’s earnings of $.03 per diluted share was not a significantaccomplishment. Nevertheless, 2007 earnings of $3.7 million, $0.81 per diluted share, represent anaffirmation of both the investment portfolio restructuring and ongoing efforts to grow all the loanportfolios. While our return on assets at 0.64% is not particularly boast worthy, it does comparefavorably with our peers. Because of our high capital levels, that competitive return on assetstranslates into a below peer return on equity of 6.35%. We look to improve return on equity by acombination of increased earnings and a stock buyback program.Loan Growth and Credit Quality     Total loans grew by $70 million, an increase of 24% from December 31, 2006. Happily, everyloan category increased and the greatest growth was in higher yielding corporate loans.     While the Bank does not view residential mortgage lending as a significant factor in our questfor higher earnings and better returns on assets and equity, it does provide risk diversificationand modest earnings potential. It is also a business our customers and
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communities expect of us. To meet those customer and community needs, we have instituted, onboth ends of the economic spectrum, a residential first mortgage with an amortization term of 40years to allow greater affordability on the lower end and very competitive pricing for jumboresidential mortgage loans on the upper end.     Given all the concerns for credit quality in some parts of the banking industry, I am happy toreport that non-performing loans at year end equaled 0.43% of total loans while the allowance forloan losses equaled 1.34% of total loans. Loans with payments over 30 days past due, a traditionalprecursor of potential credit problems, are especially low with no corporate loan delinquenciesbeyond the aforementioned non-performing loans and only $416,000 in consumer and residentialmortgage loan delinquencies.Funding     Core deposit growth throughout the region has been anemic; RiverBank is no exception. Totaldeposits increased by $26 million, however, all of that increase and more was in higher costingcertificates of deposit accounts.     While growth in core deposits would have been far preferable, it is some consolation to knowthat a combination of competitive pricing and improved marketing will bring in more certificatecustomers. Our task now is to cross sell other products to single product certificate customers.     Because deposit growth lagged our goals, we were forced to rely more heavily upon wholesalefunding, especially borrowings from the Federal Home Loan Bank of Boston. Throughout the year, asinvestment opportunities afforded an appreciable spread over wholesale borrowings, the Bank madethose investments in an effort to increase earnings and lever capital.
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Thus, our goal to reduce the percentage of assets funded with wholesale borrowings wasintentionally abandoned.Branches     Out of area banks are continuing to enter our market area with new branch locations. Thisincreased competition has forced us to examine our own branches. Unfortunately, over the years,investment in branch locations did not keep up with physical need nor technological advances. As aresult, to remain competitive we must expend capital on upgrading our present locations. To thatend, we have just completed a major upgrade to our West Methuen branch and are planning a newbuilding for another outdated, overcrowded branch.     Lastly, as we seek to expand our geography, we note demographic growth to the north of ourpresent market. We have secured a desirable location adjoining the principal shopping center inDerry, New Hampshire. This affords us a natural geographic extension into a growing community andarea.Capital     With a tangible capital to asset ratio of 9.64%, the Company is very well capitalized. Evenwith our loan growth, it is difficult to envision, within any reasonable time frame, an ability togrow prudently to a more efficient level of capital. As noted above, while it has been useful tohave such a large capital base to afford the ability to grow the balance sheet and undertakeinvestment opportunities, such activity adds very little efficiency in the use of capital.     To bring capital to more reasonable levels and to support the shareholders’ investment, theCompany has embarked on a stock buyback program. Because the Company’s stock trades so thinly andbecause of regulatory constraints on such programs, the buyback program has been slower thanoriginally envisioned. Nevertheless, since beginning the program in June, the
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Company purchased 90,356 shares in 2007 at an average price of $16.19. The buyback programwill continue through 2008.Future Goals     As I write this letter, the national and local economies appear uncertain. Nevertheless, Ibelieve that by attending assiduously to our core competencies, by monitoring expenses closely, andby being alert to opportunities for growth, we will be able to improve earnings and increasefranchise value. Hopefully, those actions will translate into improved returns for ourshareholders.     I wish to thank the Directors and employees for the dedication of their talents andexpenditure of the time and effort to improve the Company. I also wish to thank our shareholdersfor their continued support during these challenging economic times.     Two of our longest serving Directors will retire at the May 2008 Annual Meeting. Dr. EugeneA. Beliveau and Byron R. Cleveland, Jr. have combined director service to the Company of over 70years. The Bank and its Directors are indebted to these men for their diligence and dedication inprotecting the interests of our shareholders, customers and community. Their wise counsel, prudentinsights and warm collegiality will be missed.Very truly yours,Gerald T. Mulligan