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| UNITED STATES                      |
|------------------------------------|
| SECURITIES AND EXCHANGE COMMISSION |
| Washington, D.C. 20549             |
|                               |
| FORM 10-K                          |

| x                                                                                            | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934     |
|----------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------|
|                                                                                         |                                                                                     |
| For the Fiscal Year Ended June 30, 2009                                                      |
|                                                                                         |                                                                                     |
| OR                                                                                           |
|                                                                                         |                                                                                     |
| o                                                                                            | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|                                                                                         |                                                                                     |
| For the transition period from          to |
|                                                                                         |                                                                                     |
| Commission File Number: 000-50970                                                            |
|                                                                                         |
| PSB Holdings, Inc.                                                                           |
| (Name of Registrant as Specified in its Charter)                                             |

| Federal                                 |   | 42-1597948             |
|-----------------------------------------|--------|------------------------|
| (State or Other Jurisdiction of         |   | (I.R.S. Employer       |
| Incorporation or Organization)          |   | Identification Number) |
| 40 Main Street, Putnam, Connecticut     |   | 06260                  |
| (Address of Principal Executive Office) |   | (Zip Code)             |

| (860) 928-6501                                                 |
|----------------------------------------------------------------|
| (Registrant’s Telephone Number including area code)      |
|                                                           |
| Securities Registered Under to Section 12(b) of the Act:       |
| Common Stock, par value $0.10 per share                        |
| (Title of Class)                                               |
| The NASDAQ Stock Market LLC                                    |
| (Name of exchange on which registered)                         |
| Securities Registered Under Section 12(g) of the Exchange Act: |
| None                                                           |

|   |                                                                                                   |                        |   |
|--------|--------------------------------------------------------------------------------------------------------|-----------------------------|--------|
|   | Large accelerated filer o                                                                              | Accelerated filer o         |   |
|   |               Non-accelerated filer o | Smaller reporting company x |   |

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|             |                                                                                                               | Page   |
|------------------|--------------------------------------------------------------------------------------------------------------------|--------|
|             |                                                                                                               |   |
| PART I           |                                                                                                               | 1      |
|             |                                                                                                               |   |
| ITEM 1.          | Business                                                                                                           | 1      |
|             |                                                                                                               |   |
| ITEM 1A.         | Risk Factors                                                                                                       | 30     |
|             |                                                                                                               |   |
| ITEM 1B.         | Unresolved Staff Comments                                                                                          | 35     |
|             |                                                                                                               |   |
| ITEM 2.          | Properties                                                                                                         | 35     |
|             |                                                                                                               |   |
| ITEM 3.          | Legal Proceedings                                                                                                  | 36     |
|             |                                                                                                               |   |
| ITEM 4.          | Submission of Matters to a Vote of Security Holders                                                                | 36     |
|             |                                                                                                               |   |
| PART II          |                                                                                                               | 37     |
|             |                                                                                                               |   |
| ITEM 5.          | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 37     |
|             |                                                                                                               |   |
| ITEM 6.          | Selected Financial Data                                                                                            | 38     |
|             |                                                                                                               |   |
| ITEM 7.          | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 39     |
|             |                                                                                                               |   |
| ITEM 7A.         | Quantitative and Qualitative Disclosures About Market Risk                                                         | 48     |
|             |                                                                                                               |   |
| ITEM 8.          | Financial Statements and Supplementary Data                                                                        | 48     |
|             |                                                                                                               |   |
| ITEM 9.          | Changes In and Disagreements With Accountants on Accounting and Financial Disclosure                               | 84     |
|             |                                                                                                               |   |
| ITEM 9A.         | Controls and Procedures                                                                                            | 84     |
|             |                                                                                                               |   |
| ITEM 9A(T)  | Controls and Procedures                                                                                            | 84     |
|             |                                                                                                               |   |
| ITEM 9B.         | Other Information                                                                                                  | 84     |
|             |                                                                                                               |   |
| PART III         |                                                                                                               | 85     |
|             |                                                                                                               |   |
| ITEM 10.         | Directors, Executive Officers and Corporate Governance                                                             | 85     |
|             |                                                                                                               |   |
| ITEM 11.         | Executive Compensation                                                                                             | 85     |
|             |                                                                                                               |   |
| ITEM 12.         | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 85     |
|             |                                                                                                               |   |
| ITEM 13.         | Certain Relationships and Related Transactions, and Director Independence                                          | 85     |
|             |                                                                                                               |   |
| ITEM 14.         | Principal Accountant Fees and Services                                                                             | 85     |
|             |                                                                                                               |   |
| PART IV          |                                                                                                               | 86     |
|             |                                                                                                               |   |
| ITEM 15.         | Exhibits and Financial Statement Schedules                                                                         | 86     |
|             |                                                                                                               |   |
| Signatures       |                                                                                                               | 87     |

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|    |     |
|---------|----------|
| ITEM 1. | Business |

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|                          |   |                   |    |   |    |   |   |   |   |   |    |   |   |   |   |
|-------------------------------|--------|------------------------|---------|--------|---------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|
|                          |   | 2009                   |    |   | 2008    |   |   | 2007   |   |   | 2006    |   |   | 2005   |   |
|                          |   | Amount                 |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                          |   | (Dollars in thousands) |    |
| Mortgage Loans:               |   |                   |    |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential (1)               |   | $                      | 200,680 |   |    |   | 74.57  | %      |   | $      | 181,978 |   |   |   | 72.59  | % |   | $ | 168,126 |   |   |   | 69.86 | % |   | $ | 147,706 |   |   |   | 71.50 | % |   | $ | 127,520 |   |   |   | 74.75 | % |
| Commercial real estate        |   |                   | 56,500  |   |    |   | 20.99  |   |   |   | 55,406  |   |   |   | 22.10  |   |   |   | 59,274 |   |   |   | 24.63 |   |   |   | 48,210 |   |   |   | 23.34 |   |   |   | 32,685 |   |   |   | 19.16 |   |
| Residential construction      |   |                   | 1,887   |   |    |   | 0.70   |   |   |   | 3,223   |   |   |   | 1.29   |   |   |   | 5,376 |   |   |   | 2.23 |   |   |   | 3,551 |   |   |   | 1.72 |   |   |   | 4,778 |   |   |   | 2.80 |   |
| Commercial                    |   |                   | 8,958   |   |    |   | 3.33   |   |   |   | 8,687   |   |   |   | 3.46   |   |   |   | 6,449 |   |   |   | 2.68 |   |   |   | 5,693 |   |   |   | 2.76 |   |   |   | 4,561 |   |   |   | 2.67 |   |
| Consumer and other            |   |                   | 1,097   |   |    |   | 0.41   |   |   |   | 1,394   |   |   |   | 0.56   |   |   |   | 1,439 |   |   |   | 0.60 |   |   |   | 1,410 |   |   |   | 0.68 |   |   |   | 1,044 |   |   |   | 0.62 |   |
|                          |   |                   |    |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans                   |   | $                      | 269,122 |   |    |   | 100.00 | %      |   | $      | 250,688 |   |   |   | 100.00 | % |   | $ | 240,664 |   |   |   | 100.00 | % |   | $ | 206,570 |   |   |   | 100.00 | % |   | $ | 170,588 |   |   |   | 100.00 | % |
|                          |   |                   |    |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unadvanced construction loans |   |                   | (2,929  | )      |    |   |   |   |   |   | (6,522  | )      |   |   |   |   |   |   | (8,264 | ) |   |   |   |   |   |   | (5,486 | ) |   |   |   |   |   |   | (4,220 | ) |   |   |   |   |
|                          |   |                   | 266,193 |   |    |   |   |   |   |   | 244,166 |   |   |   |   |   |   |   | 232,400 |   |   |   |   |   |   |   | 201,084 |   |   |   |   |   |   |   | 166,368 |   |   |   |   |   |
| Net deferred loan costs       |   |                   | 324     |   |    |   |   |   |   |   | 320     |   |   |   |   |   |   |   | 282 |   |   |   |   |   |   |   | 35 |   |   |   |   |   |   |   | (3 | ) |   |   |   |   |
| Allowance for loan losses     |   |                   | (2,200  | )      |    |   |   |   |   |   | (1,758  | )      |   |   |   |   |   |   | (1,780 | ) |   |   |   |   |   |   | (1,582 | ) |   |   |   |   |   |   | (1,359 | ) |   |   |   |   |
|                          |   |                   |    |   |    |   |   |   |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, net                    |   | $                      | 264,317 |   |    |   |   |   |   | $      | 242,728 |   |   |   |   |   |   | $ | 230,902 |   |   |   |   |   |   | $ | 199,537 |   |   |   |   |   |   | $ | 165,006 |   |   |   |   |   |

----

|                                |   |                   |    |                   |   |                     |   |                 |   |                    |   |                 |   |   |    |                 |    |   |   |                 |    |               |    |                 |   |   |   |   |   |   |   |   |    |   |   |   |   |
|-------------------------------------|--------|------------------------|---------|------------------------|--------|--------------------------|--------|----------------------|--------|-------------------------|--------|----------------------|--------|--------|---------|----------------------|---------|--------|--------|----------------------|---------|--------------------|---------|----------------------|--------|--------|--------|--------|--------|--------|--------|--------|---------|--------|--------|--------|--------|
|                                |   | Residential (1)        |    | Commercial Real Estate |   | Residential Construction |   | Commercial           |   | Consumer and OtherLoans |   | Total Loans          |   |
|                                |   | Amount                 |    | WeightedAverage Rate   |   | Amount                   |   | WeightedAverage Rate |   | Amount                  |   | WeightedAverage Rate |   | Amount |    | WeightedAverage Rate |    | Amount |   | WeightedAverage Rate |    | Amount             |    | WeightedAverage Rate |   |
|                                |   | (Dollars in thousands) |    |
| Due During the YearsEnding June 30, |   |                   |    |                   |   |                     |   |                 |   |                    |   |                 |   |   |    |                 |    |   |   |                 |    |               |    |                 |   |   |   |   |   |   |   |   |    |   |   |   |   |
|                                |   |                   |    |                   |   |                     |   |                 |   |                    |   |                 |   |   |    |                 |    |   |   |                 |    |               |    |                 |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 2010                                |   | $                      | 39,353  |                   | 4.76   | %                        |   | $                    | 25,123 |                    | 6.02   | %                    |   | $      | 1,283   |                 | 5.81    | %      |   | $                    | 4,877   |     | 4.62    | %                    |   | $      | 567    |   | 6.34   | %      |   | $      | 71,203  |   | 5.23   | %      |   |
|                                |   |                   |    |                   |   |                     |   |                 |   |                    |   |                 |   |   |    |                 |    |   |   |                 |    |               |    |                 |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 2011                                |   |                   | 16,502  |                   | 5.57   | %                        |   |                 | 6,028  |                    | 6.81   | %                    |   |   | — |                 | — |   |   |                 | 1,759   |               | 5.73    | %                    |   |   | 241    |   | 7.77   | %      |   |   | 24,530  |   | 5.91   | %      |   |
|                                |   |                   |    |                   |   |                     |   |                 |   |                    |   |                 |   |   |    |                 |    |   |   |                 |    |               |    |                 |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 2012                                |   |                   | 18,586  |                   | 5.65   | %                        |   |                 | 6,172  |                    | 7.77   | %                    |   |   | — |                 | — |   |   |                 | 368     |               | 6.34    | %                    |   |   | 136    |   | 7.71   | %      |   |   | 25,262  |   | 6.19   | %      |   |
|                                |   |                   |    |                   |   |                     |   |                 |   |                    |   |                 |   |   |    |                 |    |   |   |                 |    |               |    |                 |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 2013 to 2014                        |   |                   | 28,706  |                   | 5.78   | %                        |   |                 | 10,476 |                    | 7.06   | %                    |   |   | — |                 | — |   |   |                 | 1,570   |               | 5.04    | %                    |   |   | 96     |   | 7.62   | %      |   |   | 40,848  |   | 6.08   | %      |   |
|                                |   |                   |    |                   |   |                     |   |                 |   |                    |   |                 |   |   |    |                 |    |   |   |                 |    |               |    |                 |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 2015 to 2019                        |   |                   | 37,034  |                   | 5.71   | %                        |   |                 | 5,045  |                    | 6.71   | %                    |   |   | — |                 | — |   |   |                 | 384     |               | 4.92    | %                    |   |   | 8      |   | 7.31   | %      |   |   | 42,471  |   | 5.82   | %      |   |
|                                |   |                   |    |                   |   |                     |   |                 |   |                    |   |                 |   |   |    |                 |    |   |   |                 |    |               |    |                 |   |   |   |   |   |   |   |   |    |   |   |   |   |
| 2020 and beyond                     |   |                   | 60,499  |                   | 5.71   | %                        |   |                 | 1,331  |                    | 6.95   | %                    |   |   | — |                 | — |   |   |                 | — |               | — |                 |   |   | 49     |   | 3.52   | %      |   |   | 61,879  |   | 5.73   | %      |   |
|                                |   |                   |    |                   |   |                     |   |                 |   |                    |   |                 |   |   |    |                 |    |   |   |                 |    |               |    |                 |   |   |   |   |   |   |   |   |    |   |   |   |   |
| Total                               |   | $                      | 200,680 |                   | 5.52   | %                        |   | $                    | 54,175 |                    | 6.60   | %                    |   | $      | 1,283   |                 | 5.81    | %      |   | $                    | 8,958   |               | 5.00    | %                    |   | $      | 1,097  |   | 6.82   | %      |   | $      | 266,193 |   | 5.73   | %      |   |

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| (1) | Residential mortgage loans include one- to four-family mortgage loans, home equity loans, and home equity lines of credit. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

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|                   |   |           |    |   |       |   |   |   |   |
|------------------------|--------|----------------|---------|--------|------------|--------|--------|--------|--------|
|                   |   | Fixed          |    |   | Adjustable |   |   | Total  |   |
|                   |   | (In thousands) |    |
| Mortgage Loans:        |   |           |    |   |       |   |   |   |   |
| Residential (1)        |   | $              | 113,055 |   |       | $      | 48,272 |   |   | $ | 161,327 |   |
| Commercial real estate |   |           | 25,214  |   |       |   | 3,838  |   |   |   | 29,052 |   |
| Commercial             |   |           | 2,839   |   |       |   | 1,242  |   |   |   | 4,081 |   |
| Consumer and other     |   |           | 485     |   |       |   | 45     |   |   |   | 530 |   |
|                   |   |           |    |   |       |   |   |   |   |   |   |   |
| Total                  |   | $              | 141,593 |   |       | $      | 53,397 |   |   | $ | 194,990 |   |

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| (1) | Residential mortgage loans include one- to four-family mortgage loans, home equity loans, and home equity lines of credit. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

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|                                                                         |   |                   |    |   |   |   |    |            |   |   |    |   |   |   |    |
|------------------------------------------------------------------------------|--------|------------------------|---------|--------|--------|--------|---------|-----------------|--------|--------|---------|--------|--------|--------|---------|
|                                                                         |   | 2009                   |    |   | 2008   |   |    | At June 30,2007 |   |   | 2006    |   |   | 2005   |    |
|                                                                         |   | (Dollars in thousands) |    |
|                                                                         |   |                   |    |   |   |   |    |            |   |   |    |   |   |   |    |
| Non-accrual loans:                                                           |   |                   |    |   |   |   |    |            |   |   |    |   |   |   |    |
| Residential mortgage loans (1)                                               |   | $                      | 1,277   |   |   | $      | — |            |   | $      | 55      |   |   | $      | 63      |   |   | $ | 86 |   |
| Commercial real estate                                                       |   |                   | 5,073   |   |   |   | 982     |            |   |   | 1,480   |   |   |   | 1,313   |   |   |   | — |   |
| Residential construction                                                     |   |                   | — |   |   |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial                                                                   |   |                   | 99      |   |   |   | — |            |   |   | 3       |   |   |   | — |   |   |   | — |   |
| Consumer and other                                                           |   |                   | — |   |   |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                                                        |   |                   | 6,449   | (2)    |   |   | 982     | (2)             |   |   | 1,538   |   |   |   | 1,376   |   |   |   | 86 |   |
| Accruing loans past due over 90 days:                                        |   |                   |    |   |   |   |    |            |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential mortgage loans (1)                                               |   |                   | — |   |   |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial real estate                                                       |   |                   | — |   |   |   | 470     |            |   |   | — |   |   |   | 75      |   |   |   | — |   |
| Residential construction                                                     |   |                   | — |   |   |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial                                                                   |   |                   | — |   |   |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |
| Consumer and other                                                           |   |                   | — |   |   |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |
| Total                                                                        |   |                   | — |   |   |   | 470     |            |   |   | — |   |   |   | 75      |   |   |   | — |   |
| Total non-performing loans                                                   |   |                   | 6,449   |   |   |   | 1,452   |            |   |   | 1,538   |   |   |   | 1,451   |   |   |   | 86 |   |
| Real estate owned                                                            |   |                   | 1,211   |   |   |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |
| Other non-performing assets                                                  |   |                   | 46      |   |   |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |
| Total non-performing assets                                                  |   |                   | 7,706   |   |   |   | 1,452   |            |   |   | 1,538   |   |   |   | 1,451   |   |   |   | 86 |   |
| Trouble debt restructurings in compliance with restructure terms             |   |                   | 259     |   |   |   | — |            |   |   | — |   |   |   | — |   |   |   | — |   |
| Troubled debt restructures and total non-performing assets                   |   | $                      | 7,965   |   |   | $      | 1,452   |            |   | $      | 1,538   |   |   | $      | 1,451   |   |   | $ | 86 |   |
| Total non-performing loans to total loans                                    |   |                   | 2.40    | %      |   |   | 0.58    | %               |   |   | 0.64    | %      |   |   | 0.70    | % |   |   | 0.05 | % |
| Total non-performing loans to total assets                                   |   |                   | 1.35    |   |   |   | 0.29    |            |   |   | 0.31    |   |   |   | 0.31    |   |   |   | 0.03 |   |
| Total non-performing assets and troubled debt restructurings to total assets |   |                   | 1.67    |   |   |   | 0.29    |            |   |   | 0.31    |   |   |   | 0.31    |   |   |   | 0.03 |   |

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| (1) | Residential mortgage loans include one- to four-family mortgage loans, home equity loans, and home equity lines of credit.                                                                                                                                                                                                           |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The gross interest income that would have been reported if the loans had performed in accordance with their original terms was $389,000 and $116,000 for the years ended June 30, 2009 and 2008, respectively. Actual income recognized in income was $136,000 and $12,000 for the years ended June 30, 2009 and 2008, respectively. |

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|                     |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |
|--------------------------|--------|------------------------|---------|--------|------------------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|-----------|--------|--------|
|                     |   | Loans Delinquent For   |    |   |             |   |
|                     |   | 60-89 Days Past Due    |    |   | 90 Days and Over |   |    | Total  |   |
|                     |   | Number                 |    |   | Amount           |   |    | Number |   |   | Amount  |   |   | Number |    |      | Amount |   |
|                     |   | (Dollars in thousands) |    |
| At June 30, 2009         |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |
| Residential (1)          |   |                   | 3       |   |             | $      | 581     |   |   |   | — |   |   | $      | — |      |   |   | 3 |   |   | $ | 581 |   |
| Commercial real estate   |   |                   | 4       |   |             |   | 2,024   |   |   |   | — |   |   |   | — |      |   |   | 4 |   |   |   | 2,024 |   |
| Residential construction |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Commercial               |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Consumer and other loans |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Total                    |   |                   | 7       |   |             | $      | 2,605   |   |   |   | — |   |   | $      | — |      |   |   | 7 |   |   | $ | 2,605 |   |
|                     |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |   |   |   |   |   |   |
| At June 30, 2008         |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |   |   |   |   |   |   |
| Residential (1)          |   |                   | — |   |             | $      | — |   |   |   | — |   |   | $      | — |      |   |   | — |   |   | $ | — |   |
| Commercial real estate   |   |                   | 6       |   |             |   | 1,289   |   |   |   | 11      |   |   |   | 2,859   |      |   |   | 17 |   |   |   | 4,148 |   |
| Residential construction |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Commercial               |   |                   | 1       |   |             |   | 45      |   |   |   | 1       |   |   |   | 195     |      |   |   | 2 |   |   |   | 240 |   |
| Consumer and other loans |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Total                    |   |                   | 7       |   |             | $      | 1,334   |   |   |   | 12      |   |   | $      | 3,054   |  (2) |   |   | 19 |   |   | $ | 4,388 |   |
|                     |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |   |   |   |   |   |   |
| At June 30, 2007         |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |   |   |   |   |   |   |
| Residential (1)          |   |                   | — |   |             | $      | — |   |   |   | 1       |   |   | $      | 16      |      |   |   | 1 |   |   | $ | 16 |   |
| Commercial real estate   |   |                   | 1       |   |             |   | 128     |   |   |   | — |   |   |   | — |      |   |   | 1 |   |   |   | 128 |   |
| Residential construction |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Commercial               |   |                   | — |   |             |   | — |   |   |   | 1       |   |   |   | 3       |      |   |   | 1 |   |   |   | 3 |   |
| Consumer and other loans |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Total                    |   |                   | 1       |   |             | $      | 128     |   |   |   | 2       |   |   | $      | 19      |      |   |   | 3 |   |   | $ | 147 |   |
|                     |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |   |   |   |   |   |   |
| At June 30, 2006         |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |   |   |   |   |   |   |
| Residential (1)          |   |                   | 3       |   |             | $      | 133     |   |   |   | — |   |   | $      | — |      |   |   | 3 |   |   | $ | 133 |   |
| Commercial real estate   |   |                   | 1       |   |             |   | 633     |   |   |   | 2       |   |   |   | 755     |      |   |   | 3 |   |   |   | 1,388 |   |
| Residential construction |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Commercial               |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Consumer and other loans |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Total                    |   |                   | 4       |   |             | $      | 766     |   |   |   | 2       |   |   | $      | 755     |      |   |   | 6 |   |   | $ | 1,521 |   |
|                     |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |   |   |   |   |   |   |
| At June 30, 2005         |   |                   |    |   |             |   |    |   |   |   |    |   |   |   |    |      |   |   |   |   |   |   |   |   |
| Residential (1)          |   |                   | 1       |   |             | $      | 13      |   |   |   | — |   |   | $      | — |      |   |   | 1 |   |   | $ | 13 |   |
| Commercial real estate   |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Residential construction |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Commercial               |   |                   | 1       |   |             |   | 195     |   |   |   | — |   |   |   | — |      |   |   | 1 |   |   |   | 195 |   |
| Consumer and other loans |   |                   | — |   |             |   | — |   |   |   | — |   |   |   | — |      |   |   | — |   |   |   | — |   |
| Total                    |   |                   | 2       |   |             | $      | 208     |   |   |   | — |   |   | $      | — |      |   |   | 2 |   |   | $ | 208 |   |

----

| (1) | Residential mortgage loans include one- to four-family mortgage loans, home equity loans, and home equity lines of credit.                                                                                                                                                    |
|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The difference in loans delinquent 90 days and over and non-performing loans as of June 30, 2009 is primarily related to completion of underwriting for renewals and obtaining current financial information from borrowers, with these loans otherwise performing as agreed. |

----

----

|                                                                        |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |
|-----------------------------------------------------------------------------|--------|------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                                                                        |   | Year Ended June 30,    |    |
|                                                                        |   | 2009                   |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|                                                                        |   | (Dollars in thousands) |    |
|                                                                        |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Balance at beginning of year                                                |   | $                      | 1,758   |   |   | $      | 1,780   |   |   | $      | 1,582   |   |   | $      | 1,359   |   |   | $ | 1,285 |   |
| Provision for loan losses                                                   |   |                   | 967     |   |   |   | 51      |   |   |   | 264     |   |   |   | 200     |   |   |   | 135 |   |
| Charge offs:                                                                |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential (1)                                                             |   |                   | (53     | )      |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial real estate                                                      |   |                   | (400    | )      |   |   | — |   |   |   | (26     | )      |   |   | (10     | ) |   |   | — |   |
| Residential construction                                                    |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial                                                                  |   |                   | — |   |   |   | (27     | )      |   |   | — |   |   |   | — |   |   |   | — |   |
| Consumer and other                                                          |   |                   | (118    | )      |   |   | (97     | )      |   |   | (86     | )      |   |   | (72     | ) |   |   | (5 | ) |
| Total charge-offs                                                           |   |                   | (571    | )      |   |   | (124    | )      |   |   | (112    | )      |   |   | (82     | ) |   |   | (5 | ) |
| Recoveries:                                                                 |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Residential (1)                                                             |   |                   | 1       |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial real estate                                                      |   |                   | — |   |   |   | 10      |   |   |   | — |   |   |   | — |   |   |   | 26 |   |
| Residential construction                                                    |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Commercial                                                                  |   |                   | 5       |   |   |   | 4       |   |   |   | 19      |   |   |   | — |   |   |   | 4 |   |
| Consumer and other                                                          |   |                   | 40      |   |   |   | 37      |   |   |   | 27      |   |   |   | 7       |   |   |   | 12 |   |
| Total recoveries                                                            |   |                   | 46      |   |   |   | 51      |   |   |   | 46      |   |   |   | 7       |   |   |   | 42 |   |
| Net (charge-offs) recoveries                                                |   |                   | (525    | )      |   |   | (73     | )      |   |   | (66     | )      |   |   | (75     | ) |   |   | 37 |   |
| Transfer to allowance for off-balance sheet items                           |   |                   | — |   |   |   | — |   |   |   | — |   |   |   | 98      |   |   |   | (98 | ) |
| Allowance at end of year                                                    |   | $                      | 2,200   |   |   | $      | 1,758   |   |   | $      | 1,780   |   |   | $      | 1,582   |   |   | $ | 1,359 |   |
|                                                                        |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Ratios:                                                                     |   |                   |    |   |   |   |    |   |   |   |    |   |   |   |    |   |   |   |   |   |
| Allowance for loan losses to non-performing loans at end of year            |   |                   | 34.11   | %      |   |   | 121.07  | %      |   |   | 115.73  | %      |   |   | 109.03  | % |   |   | 1,580.23 | % |
| Allowance for loan losses to total loans outstanding at the end of the year |   |                   | 0.82    | %      |   |   | 0.70    | %      |   |   | 0.74    | %      |   |   | 0.77    | % |   |   | 0.80 | % |
| Net charge-offs to average loans outstanding                                |   |                   | 0.21    | %      |   |   | 0.03    | %      |   |   | 0.03    | %      |   |   | 0.04    | % |   |   | 0.00 | % |

| (1) | Residential mortgage loans include one- to four-family mortgage loans, home equity loans, and home equity lines of credit. |
|-----|----------------------------------------------------------------------------------------------------------------------------|

----

|                            |   |                   |   |   |                             |   |   |                                |   |
|---------------------------------|--------|------------------------|--------|--------|----------------------------------|--------|--------|-------------------------------------|--------|
|                            |   | Amount                 |   |   | % ofAllowance to Total Allowance |   |   | % of Loans in Categoryto TotalLoans |   |
|                            |   | (Dollars in thousands) |   |
| At June 30, 2009                |   |                   |   |   |                             |   |   |                                |   |
| Residential mortgages (1)       |   | $                      | 1,085  |   |                             |   | 49.32  | %                                   |   |   | 75.27 | % |
| Commercial loans (2)            |   |                   | 1,016  |   |                             |   | 46.18  |                                |   |   | 24.32 |   |
| Consumer loans                  |   |                   | 11     |   |                             |   | 0.50   |                                |   |   | 0.41 |   |
| Unallocated                     |   |                   | 88     |   |                             |   | 4.00   |                                |   |   | — |   |
| Total allowance for loan losses |   | $                      | 2,200  |   |                             |   | 100.00 | %                                   |   |   | 100.00 | % |
|                            |   |                   |   |   |                             |   |   |                                |   |   |   |   |
| At June 30, 2008                |   |                   |   |   |                             |   |   |                                |   |   |   |   |
| Residential mortgages (1)       |   | $                      | 842    |   |                             |   | 47.89  | %                                   |   |   | 73.88 | % |
| Commercial loans (2)            |   |                   | 845    |   |                             |   | 48.07  |                                |   |   | 25.56 |   |
| Consumer loans                  |   |                   | 15     |   |                             |   | 0.85   |                                |   |   | 0.56 |   |
| Unallocated                     |   |                   | 56     |   |                             |   | 3.19   |                                |   |   | — |   |
| Total allowance for loan losses |   | $                      | 1,758  |   |                             |   | 100.00 | %                                   |   |   | 100.00 | % |
|                            |   |                   |   |   |                             |   |   |                                |   |   |   |   |
| At June 30, 2007                |   |                   |   |   |                             |   |   |                                |   |   |   |   |
| Residential mortgages (1)       |   | $                      | 919    |   |                             |   | 51.63  | %                                   |   |   | 72.09 | % |
| Commercial loans (2)            |   |                   | 788    |   |                             |   | 44.27  |                                |   |   | 27.31 |   |
| Consumer loans                  |   |                   | 25     |   |                             |   | 1.40   |                                |   |   | 0.60 |   |
| Unallocated                     |   |                   | 48     |   |                             |   | 2.70   |                                |   |   | — |   |
| Total allowance for loan losses |   | $                      | 1,780  |   |                             |   | 100.00 | %                                   |   |   | 100.00 | % |
|                            |   |                   |   |   |                             |   |   |                                |   |   |   |   |
| At June 30, 2006                |   |                   |   |   |                             |   |   |                                |   |   |   |   |
| Residential mortgages (1)       |   | $                      | 570    |   |                             |   | 36.03  | %                                   |   |   | 73.22 | % |
| Commercial loans (2)            |   |                   | 978    |   |                             |   | 61.82  |                                |   |   | 26.10 |   |
| Consumer loans                  |   |                   | 29     |   |                             |   | 1.83   |                                |   |   | 0.68 |   |
| Unallocated                     |   |                   | 5      |   |                             |   | 0.32   |                                |   |   | — |   |
| Total allowance for loan losses |   | $                      | 1,582  |   |                             |   | 100.00 | %                                   |   |   | 100.00 | % |
|                            |   |                   |   |   |                             |   |   |                                |   |   |   |   |
| At June 30, 2005                |   |                   |   |   |                             |   |   |                                |   |   |   |   |
| Residential mortgages (1)       |   | $                      | 491    |   |                             |   | 36.13  | %                                   |   |   | 77.55 | % |
| Commercial loans (2)            |   |                   | 722    |   |                             |   | 53.13  |                                |   |   | 21.83 |   |
| Consumer loans                  |   |                   | 16     |   |                             |   | 1.18   |                                |   |   | 0.62 |   |
| Unallocated                     |   |                   | 130    |   |                             |   | 9.56   |                                |   |   | — |   |
| Total allowance for loan losses |   | $                      | 1,359  |   |                             |   | 100.00 | %                                   |   |   | 100.00 | % |

----

| (1) | Residential mortgage loans include one- to four-family mortgage loans, home equity loans, and home equity lines of credit. |
|-----|----------------------------------------------------------------------------------------------------------------------------|
| (2) | Commercial loans include commercial real estate loans and commercial & industrial loans.                               |

----

----

----

----

| Issuer                  |   | Goldman Sachs |   | Pitney Bowes |   | Merrill Lynch |   | Bank of America |   | Freddie Mac |   | Freddie Mac |
|-------------------------|--------|---------------|--------|--------------|--------|---------------|--------|-----------------|--------|-------------|--------|-------------|
| Par amount              |   | $3,000,000    |   | $5,000,000   |   | $5,000,000    |   | $2,000,000      |   | $2,000,000  |   | $2,000,000  |
| Book Value              |   | $3,000,000    |   | $5,000,000   |   | $5,000,000    |   | $2,000,000      |   | $23,000     |   | $23,000     |
| Purchase Date           |   | 12-12-07      |   | 11-06-06     |   | 09-04-07      |   | 11-20-07        |   | 11-09-07    |   | 01-03-08    |
| Maturity Date           |   | 08-23-26      |   | 06-30-20     |   | 05-28-27      |   | 08-17-47        |   | 06-30-20    |   | 06-30-20    |
| Next Reset Date         |   | 08-21-09      |   | 10-30-09     |   | 08-27-09      |   | 08-14-09        |   | 07-10-09    |   | 07-03-09    |
| Reset Frequency         |   | Quarterly     |   | Three years  |   | Quarterly     |   | Quarterly       |   | Quarterly   |   | Quarterly   |
| Failed Auction          |   | Yes           |   | No           |   | Yes           |   | Yes             |   | Yes         |   | Yes         |
| Receiving Default Rates |   | Yes           |   | N/A          |   | Yes           |   | Yes             |   | No          |   | No          |
| Current Rate            |   | 4.444%        |   | 4.872%       |   | 4.684%        |   | 4.850%          |   | 0.000%      |   | 0.000%      |
| Dividends Current:      |   | Yes           |   | Yes          |   | Yes           |   | Yes             |   | No          |   | No          |

----

|                                   |   |          |    |   | At June 30,     |   |    |          |   |
|----------------------------------------|--------|---------------|---------|--------|-----------------|--------|---------|---------------|--------|
|                                   |   | 2009          |    |   | 2008            |   |    | 2007          |   |
|                                   |   | CarryingValue |    |   | Percentof total |   |    | CarryingValue |   |   | Percentof total |   |   | CarryingValue |   |   | Percentof total |   |
|                                   |   |          |    |   |            |   |    |          |   |   |   |   |   |   |   |   |   |   |
| (Dollars in thousands)                 |   |          |    |   |            |   |    |          |   |   |   |   |   |   |   |   |   |   |
| Securities, available for sale:        |   |          |    |   |            |   |    |          |   |   |   |   |   |   |   |   |   |   |
| U.S. Government and agency securities  |   | $             | 19,667  |   |            |   | 11.8    | %             |   | $ | 19,472 |   |   |   | 9.2 | % |   | $ | 44,679 |   |   |   | 20.7 | % |
| State agency and municipal obligations |   |          | — |   |            |   | — | %             |   |   | 4,547 |   |   |   | 2.1 | % |   |   | 9,382 |   |   |   | 4.4 | % |
| Corporate bonds and other securities   |   |          | 9,263   |   |            |   | 5.6     | %             |   |   | 17,214 |   |   |   | 8.1 | % |   |   | 20,937 |   |   |   | 9.7 | % |
| Mortgage-backed securities             |   |          | 123,596 |   |            |   | 74.0    | %             |   |   | 151,850 |   |   |   | 71.6 | % |   |   | 135,324 |   |   |   | 62.9 | % |
| Equity securities                      |   |          | 12,362  |   |            |   | 7.4     | %             |   |   | 19,000 |   |   |   | 9.0 | % |   |   | 5,000 |   |   |   | 2.3 | % |
| Total securities, available for sale   |   |          | 164,888 |   |            |   | 98.8    | %             |   |   | 212,083 |   |   |   | 100.0 | % |   |   | 215,322 |   |   |   | 100.0 | % |
| Securities, held-to-maturity:          |   |          |    |   |            |   |    |          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| U.S. Government and agency securities  |   |          | 2,000   |   |            |   | 1.2     | %             |   |   | — |   |   |   | — | % |   |   | — |   |   |   | — | % |
| Total securities                       |   | $             | 166,888 |   |            |   | 100.0   | %             |   | $ | 212,083 |   |   |   | 100.0 | % |   | $ | 215,322 |   |   |   | 100.0 | % |

|                                  |   | In One Year orLess |    |   | After OneYear ThroughFive Years |   |    | After FiveYearsThrough Ten Years |   |   | After TenYears |   |   | Total  |    |   |
|---------------------------------------|--------|--------------------|---------|--------|---------------------------------|--------|---------|----------------------------------|--------|--------|----------------|--------|--------|--------|---------|--------|
| (Dollars in thousands)                |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |
| Securities available-for-sale:        |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |
|                                  |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |   |   |   |   |   |
| U.S. Government and agency securities |   | $                  | — |   |                            | $      | 3,946   |                             |   | $      | 1,026          |   |   | $      | 14,695  |   |   | $ | 19,667 |   |   |
|                                  |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |   |   |   |   |   |
| Corporate debt securities             |   |               | 1,951   |   |                            |   | 2,776   |                             |   |   | —        |   |   |   | 4,536   |   |   | $ | 9,263 |   |   |
|                                  |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |   |   |   |   |   |
| Mortgage-backed securities            |   |               | — |   |                            |   | 4,878   |                             |   |   | 7,617          |   |   |   | 111,101 |   |   | $ | 123,596 |   |   |
|                                  |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |   |   |   |   |   |
| Total debt securities                 |   |               | 1,951   |   |                            |   | 11,600  |                             |   |   | 8,643          |   |   |   | 130,332 |   |   |   | 152,526 |   |   |
|                                  |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |   |   |   |   |   |
| Equity securities                     |   |               | — |   |                            |   | — |                             |   |   | —        |   |   |   | 12,362  |   |   | $ | 12,362 |   |   |
|                                  |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |   |   |   |   |   |
| Total securities available-for-sale   |   | $                  | 1,951   |   |                            | $      | 11,600  |                             |   | $      | 8,643          |   |   | $      | 142,694 |   |   | $ | 164,888 |   |   |
|                                  |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |   |   |   |   |   |
| Securities held-to-maturity:          |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |   |   |   |   |   |
| U.S. Government and agency securities |   |               | — |   |                            |   | — |                             |   |   | —        |   |   |   | 2,000   |   |   | $ | 2,000 |   |   |
|                                  |   |               |    |   |                            |   |    |                             |   |   |           |   |   |   |    |   |   |   |   |   |   |
| Total securities                      |   | $                  | 1,951   |   |                            | $      | 11,600  |                             |   | $      | 8,643          |   |   | $      | 144,694 |   |   | $ | 166,888 |   |   |
| Weighted average yield                |   |               | 5.33    | %      |                            |   | 4.80    | %                                |   |   | 4.83           | %      |   |   | 5.21    | %      |   |   | 5.16  | % |   |

----

----

|                    |   | For the Year Ended June 30, |    |
|-------------------------|--------|-----------------------------|---------|
|                    |   | 2009                        |    |   | 2008 |   |   | 2007 |   |
|                    |   | AverageBalance              |    |   | Percent |   |   | WeightedAverageRate |   |   | AverageBalance |   |   | Percent |   |   | WeightedAverageRate |   |   | AverageBalance |   |   | Percent |   |   | WeightedAverageRate |   |
|                    |   | (Dollars in thousands)      |    |
|                    |   |                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits         |   | $                           | 36,219  |   |   |   | 12.39 | % |   |   | — | % |   | $ | 38,846 |   |   |   | 13.64 | % |   |   | — | % |   | $ | 40,264 |   |   |   | 13.82 | % |   |   | — | % |
| NOW accounts            |   |                        | 42,360  |   |   |   | 14.49 |   |   |   | 1.90 |   |   |   | 29,813 |   |   |   | 10.47 |   |   |   | 2.37 |   |   |   | 24,798 |   |   |   | 8.51 |   |   |   | 1.83 |   |
| Regular savings         |   |                        | 45,684  |   |   |   | 15.63 |   |   |   | 0.46 |   |   |   | 47,397 |   |   |   | 16.64 |   |   |   | 0.60 |   |   |   | 51,652 |   |   |   | 17.72 |   |   |   | 0.74 |   |
| Money market accounts   |   |                        | 12,006  |   |   |   | 4.10 |   |   |   | 1.08 |   |   |   | 15,496 |   |   |   | 5.44 |   |   |   | 1.70 |   |   |   | 20,210 |   |   |   | 6.94 |   |   |   | 1.84 |   |
| Club accounts           |   |                        | 261     |   |   |   | 0.09 |   |   |   | 3.79 |   |   |   | 250 |   |   |   | 0.09 |   |   |   | 4.17 |   |   |   | 243 |   |   |   | 0.08 |   |   |   | 4.17 |   |
|                    |   |                        | 136,530 |   |   |   | 46.70 |   |   |   | 0.85 |   |   |   | 131,802 |   |   |   | 46.28 |   |   |   | 0.96 |   |   |   | 137,167 |   |   |   | 47.07 |   |   |   | 0.89 |   |
| Certificates of deposit |   |                        | 155,813 |   |   |   | 53.30 |   |   |   | 3.27 |   |   |   | 153,012 |   |   |   | 53.72 |   |   |   | 3.87 |   |   |   | 154,258 |   |   |   | 52.93 |   |   |   | 4.66 |   |
| Total                   |   | $                           | 292,343 |   |   |   | 100.00 | % |   |   | 2.14 | % |   | $ | 284,814 |   |   |   | 100.00 | % |   |   | 2.52 | % |   | $ | 291,425 |   |   |   | 100.00 | % |   |   | 2.88 | % |

|                              |   |            |   |   |
|-----------------------------------|--------|-----------------|--------|--------|
| Maturity Period                   |   | At June 30,2009 |   |
|                              |   | (In thousands)  |   |
|                              |   |            |   |   |
| Three months or less              |   | $               | 24,462 |   |
| Over three through six months     |   |            | 8,254  |   |
| Over six months through one year  |   |            | 11,940 |   |
| Over one year through three years |   |            | 10,755 |   |
| Over three years                  |   |            | 6,902  |   |
| Total                             |   | $               | 62,313 |   |

----

|                                                                    |   |                              |    |   |   |   |    |   |   |
|-------------------------------------------------------------------------|--------|-----------------------------------|---------|--------|--------|--------|---------|--------|--------|
|                                                                    |   | At and For The Year EndedJune 30, |    |
|                                                                    |   | 2009                              |    |   | 2008   |   |    | 2007   |   |
|                                                                    |   | (Dollars in thousands)            |    |
|                                                                    |   |                              |    |   |   |   |    |   |   |
| Maximum amount of advances outstandingat any month end during the year: |   |                              |    |   |   |   |    |   |   |
| FHLB advances                                                           |   | $                                 | 150,204 |   |   | $      | 152,236 |   |   | $ | 137,883 |   |
| Repurchase Agreements with other companies                              |   |                              | — |   |   |   | — |   |   |   | 1,722 |   |
| Repurchase Agreements with customers                                    |   |                              | 8,637   |   |   |   | 6,406   |   |   |   | 5,389 |   |
|                                                                    |   |                              |    |   |   |   |    |   |   |   |   |   |
| Average advances outstanding during the year:                           |   |                              |    |   |   |   |    |   |   |   |   |   |
| FHLB advances                                                           |   |                              | 140,685 |   |   |   | 145,691 |   |   |   | 126,524 |   |
| Repurchase Agreements with other companies                              |   |                              | — |   |   |   | — |   |   |   | 754 |   |
| Repurchase Agreements with customers                                    |   |                              | 5,535   |   |   |   | 4,603   |   |   |   | 3,331 |   |
|                                                                    |   |                              |    |   |   |   |    |   |   |   |   |   |
| Balance outstanding at end of year:                                     |   |                              |    |   |   |   |    |   |   |   |   |   |
| FHLB advances                                                           |   |                              | 120,500 |   |   |   | 150,215 |   |   |   | 137,883 |   |
| Repurchase Agreements with other companies                              |   |                              | — |   |   |   | — |   |   |   | — |   |
| Repurchase Agreements with customers                                    |   |                              | 4,471   |   |   |   | 6,406   |   |   |   | 3,974 |   |
|                                                                    |   |                              |    |   |   |   |    |   |   |   |   |   |
| Weighted average interest rate during the year:                         |   |                              |    |   |   |   |    |   |   |   |   |   |
| FHLB advances                                                           |   |                              | 4.05    | %      |   |   | 4.62    | %      |   |   | 5.19 | % |
| Repurchase Agreements with other companies                              |   |                              | — |   |   |   | — |   |   |   | 5.40 |   |
| Repurchase Agreements with customers                                    |   |                              | 2.28    |   |   |   | 2.84    |   |   |   | 3.92 |   |
|                                                                    |   |                              |    |   |   |   |    |   |   |   |   |   |
| Weighted average interest rate at end of year:                          |   |                              |    |   |   |   |    |   |   |   |   |   |
| FHLB advances                                                           |   |                              | 4.06    | %      |   |   | 3.95    | %      |   |   | 4.98 | % |
| Repurchase Agreements with other companies                              |   |                              | — |   |   |   | — |   |   |   | — |   |
| Repurchase Agreements with customers                                    |   |                              | 2.30    |   |   |   | 2.17    |   |   |   | 3.97 |   |

----

----

----

|   |    |                                                                                                                                                                                                                                                   |
|--------|---------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | ● | the total capital distributions for the applicable calendar year exceed the sum of the association’s net income for that year to date plus the association’s retained net income for the preceding two years still available for dividend; |
|   |    |                                                                                                                                                                                                                                                   |
|   | ● | the association would not be at least adequately capitalized following the distribution;                                                                                                                                                               |
|   |    |                                                                                                                                                                                                                                                   |
|   | ● | the distribution would violate any applicable statute, regulation, agreement or Office of Thrift Supervision-imposed condition; or                                                                                                                     |
|   |    |                                                                                                                                                                                                                                                   |
|   | ● | the association is not eligible for expedited treatment of its filings.                                                                                                                                                                                |

|   |    |                                                                                                    |
|--------|---------|---------------------------------------------------------------------------------------------------------|
|   | ● | the association would be undercapitalized following the distribution;                                   |
|   |    |                                                                                                    |
|   | ● | the proposed capital distribution raises safety and soundness concerns; or                              |
|   |    |                                                                                                    |
|   | ● | the capital distribution would violate a prohibition contained in any statute, regulation or agreement. |

----

----

|   |    |                                                                                                                             |
|--------|---------|----------------------------------------------------------------------------------------------------------------------------------|
|   | ● | well-capitalized (at least 5% leverage capital, 6% Tier 1 risk-based capital and 10% total risk-based capital);                  |
|   |    |                                                                                                                             |
|   | ● | adequately capitalized (at least 4% leverage capital, 4% Tier 1 risk-based capital and 8% total risk-based capital);             |
|   |    |                                                                                                                             |
|   | ● | undercapitalized (less than 8% total risk-based capital, 4% Tier 1 risk-based capital or 3% leverage capital);                   |
|   |    |                                                                                                                             |
|   | ● | significantly undercapitalized (less than 6% total risk-based capital, 3% Tier 1 risk-based capital or 3% leverage capital); and |
|   |    |                                                                                                                             |
|   | ● | critically undercapitalized (less than 2% tangible capital).                                                                     |

----

----

----

|           |         |
|----------------|--------------|
| ITEM 1A.  | Risk Factors |

----

----

----

|   |    |                                                                                                          |
|--------|---------|---------------------------------------------------------------------------------------------------------------|
|   | ● | the interest income we earn on our interest-earning assets, such as loans and securities; and |
|   |    |                                                                                                          |
|   | ● | the interest expense we pay on our interest-bearing liabilities, such as deposits and borrowings.             |

----

----

|     |                      |
|----------|---------------------------|
| ITEM 1B. | Unresolved Staff Comments |

|    |       |
|---------|------------|
| ITEM 2. | Properties |

----

| Location                          |   |                                                                 | Leased orOwned |   | Year Acquiredor Leased |   | SquareFootage |    | Net Book Valueof Real Property |           |
|-----------------------------------|--------|----------------------------------------------------------------------|----------------|--------|------------------------|--------|---------------|---------|--------------------------------|----------------|
|                              |   |                                                                 |           |   |                   |   |          |    |                           | (In thousands) |   |
| Main Office:                      |   |                                                                 |           |   |                   |   |          |    |                           |           |   |
| 40 Main Street                    |   | Owned                                                                |           | 1974   |                   |   | 14,938        |    | $                              | 1,287          |   |
| Putnam, Connecticut 06260         |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
| Full Service Branches:            |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
| 251 Kennedy Drive                 |   | Leased                                                               |           | 2006   |                   |   | 473           |    |                           | 98             |   |
| Putnam, Connecticut 06260         |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |
| 100 Averill Road                  |   | Owned                                                                |           | 1981   |                   |   | 2,487         |    |                           | 523            |   |
| Pomfret Center, Connecticut 06259 |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |
| 125 Wauregan Road                 |   | Owned                                                                |           | 1993   |                   |   | 2,452         |    |                           | 369            |   |
| Danielson, Connecticut 06239      |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |
| 11 Pratt Road                     |   | Owned                                                                |           | 2000   |                   |   | 2,162         |    |                           | 361            |   |
| Plainfield, Connecticut 06374     |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |
| 461 Voluntown Road, Rte. 138      |   | Leased                                                               |           | 2005   |                   |   | 2,600         |    |                           | 54             |   |
| Griswold, Connecticut 06351       |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |
| 2 Chapman Lane                    |   | Owned                                                                |           | 2009   |                   |   | 2,400         |    |                           | 823            |   |
| Gales Ferry, Connecticut 06335    |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |
| 40 High Street                    |   | Owned                                                                |           | 2009   |                   |   | 2,800         |    |                           | 840            |   |
| Norwich, Connecticut (2)          |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |
| Loan Center:                      |   |                                                                 |           |   |                   |   |          |    |                           |           |   |
| 50 Canal Street                   |   | Owned                                                                |           | 2000   |                   |   | 2,940         |    |                           | 178            |   |
| Putnam, Connecticut 06260         |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
| ATM Remote Location:              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
| 168 Route 169                     |   | Leased                                                               |           | 2003   |                   |   | 30            |    |                           | —        |   |
| Woodstock, Connecticut 06281      |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
|                              |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
| Special Needs Limited Branch (1): |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
| Creamery Brook Retirement Village |   |            — |           |   |                   |   |          | — |                           |           | — |   |
| 36 Vina Lane                      |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
| Brooklyn, Connecticut 06234       |   |                                                                 |           |   |                   |   |          |    |                           |           |   |   |
| Total                             |   |                                                                 |           |   |                   |   |          |    |                           | $              | 4,533 |   |

----

| (1) | Our personnel are at this location for approximately three hours once a week. The facility provides a furnished room for us at no cost. Our personnel conduct limited banking activities, such as deposit-taking, check cashing, notary and certificate of deposit renewals. We began operating at this location in 2002. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) | The Norwich branch opened for business on September 2, 2009.                                                                                                                                                                                                                                                              |

| ITEM 3.                                                                                                                                                                                                                                                                                            | Legal Proceedings                                   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------|
|                                                                                                                                                                                                                                                                                               |                                                |
| From time to time, we are involved as plaintiff or defendant in various legal proceedings arising in the ordinary course of business. At June 30, 2009, we were not involved in any legal proceedings, the outcome of which would be material to our financial condition or results of operations. |
|                                                                                                                                                                                                                                                                                               |                                                |
| ITEM 4.                                                                                                                                                                                                                                                                                            | Submission of Matters to a Vote of Security Holders |
|                                                                                                                                                                                                                                                                                               |                                                |

----

|    |                                                                                                               |
|---------|--------------------------------------------------------------------------------------------------------------------|
| ITEM 5. | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities |

|                             |   |   |   |   |   |   |   |      |   |
|----------------------------------|--------|--------|--------|--------|--------|--------|--------|-----------|--------|
|                             |   | High   |   |   | Low    |   |   | Dividends |   |
| Fiscal 2008                      |   |   |   |   |   |   |   |      |   |
| Quarter ended September 30, 2007 |   | $      | 10.76  |   |   | $      | 9.35   |      |   | $ | 0.07 |   |
| Quarter ended December 31, 2007  |   |   | 10.55  |   |   |   | 7.58   |      |   |   | 0.07 |   |
| Quarter ended March 31, 2008     |   |   | 9.68   |   |   |   | 8.00   |      |   |   | 0.08 |   |
| Quarter ended June 30, 2008      |   |   | 10.00  |   |   |   | 8.37   |      |   |   | 0.09 |   |
|                             |   |   |   |   |   |   |   |      |   |   |   |   |
| Fiscal 2009                      |   |   |   |   |   |   |   |      |   |   |   |   |
| Quarter ended September 30, 2008 |   | $      | 9.50   |   |   | $      | 7.80   |      |   | $ | 0.10 |   |
| Quarter ended December 31, 2008  |   |   | 8.26   |   |   |   | 3.23   |      |   |   | 0.09 |   |
| Quarter ended March 31, 2009     |   |   | 4.72   |   |   |   | 3.60   |      |   |   | 0.05 |   |
| Quarter ended June 30, 2009      |   |   | 5.20   |   |   |   | 3.60   |      |   |   | 0.05 |   |

----

| ITEM 6. | Selected Financial Data |
|---------|-------------------------|

|                               |   |                              |    |   |   |   |    |   |   |   |    |   |   |   |    |
|------------------------------------|--------|-----------------------------------|---------|--------|--------|--------|---------|--------|--------|--------|---------|--------|--------|--------|---------|
|                               |   | At or For the Year Ended June 30, |    |
|                               |   | 2009                              |    |   | 2008   |   |    | 2007   |   |   | 2006    |   |   | 2005   |    |
|                               |   | (Dollars in thousands)            |    |
| Selected Financial Condition Data: |   |                              |    |   |   |   |    |   |   |   |    |   |   |   |    |
|                               |   |                              |    |   |   |   |    |   |   |   |    |   |   |   |    |
| Total Assets                       |   | $                                 | 477,349 |   |   | $      | 494,499 |   |   | $      | 491,198 |   |   | $      | 474,417 |   |   | $ | 337,635 |   |
| Cash and cash equivalents          |   |                              | 6,059   |   |   |   | 8,146   |   |   |   | 13,198  |   |   |   | 8,195   |   |   |   | 7,705 |   |
| Securities available-for-sale      |   |                              | 164,888 |   |   |   | 212,083 |   |   |   | 215,322 |   |   |   | 238,730 |   |   |   | 149,649 |   |
| Securities held-to-maturity        |   |                              | 2,000   |   |   |   | — |   |   |   | — |   |   |   | — |   |   |   | — |   |
| Loans receivable, net              |   |                              | 264,317 |   |   |   | 242,728 |   |   |   | 230,902 |   |   |   | 199,537 |   |   |   | 165,006 |   |
| Loans held-for-sale                |   |                              | 1,200   |   |   |   | 675     |   |   |   | 1,478   |   |   |   | 934     |   |   |   | — |   |
| Deposits                           |   |                              | 308,099 |   |   |   | 283,724 |   |   |   | 293,473 |   |   |   | 296,965 |   |   |   | 218,123 |   |
| Borrowings                         |   |                              | 124,971 |   |   |   | 156,621 |   |   |   | 141,857 |   |   |   | 124,593 |   |   |   | 63,734 |   |
| Total capital                      |   |                              | 39,896  |   |   |   | 49,437  |   |   |   | 51,251  |   |   |   | 48,912  |   |   |   | 53,020 |   |

|                                                |   | At or For the Year Ended June 30, |    |
|-----------------------------------------------------|--------|-----------------------------------|---------|
|                                                |   | 2009                              |    |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                |   | (Dollars in thousands)            |    |
| Selected Operating Data:                            |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                |   |                              |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and dividend income                        |   | $                                 | 25,318  |   |   | $ | 27,205 |   |   | $ | 25,364 |   |   | $ | 19,437 |   |   | $ | 14,768 |   |
| Interest expense                                    |   |                              | 12,726  |   |   |   | 15,229 |   |   |   | 14,795 |   |   |   | 8,801 |   |   |   | 5,572 |   |
| Net interest income                                 |   |                              | 12,592  |   |   |   | 11,976 |   |   |   | 10,569 |   |   |   | 10,636 |   |   |   | 9,196 |   |
| Provision for loan losses                           |   |                              | 967     |   |   |   | 51 |   |   |   | 263 |   |   |   | 200 |   |   |   | 135 |   |
| Net interest income after provision for loan losses |   |                              | 11,625  |   |   |   | 11,925 |   |   |   | 10,306 |   |   |   | 10,436 |   |   |   | 9,061 |   |
| Noninterest (charge) income                         |   |                              | (12,560 | ) |   |   | 3,193 |   |   |   | 2,741 |   |   |   | 2,436 |   |   |   | 1,218 |   |
| Noninterest expense                                 |   |                              | 10,806  |   |   |   | 10,945 |   |   |   | 10,769 |   |   |   | 10,139 |   |   |   | 8,631 |   |
| (Loss) income before income taxes                   |   |                              | (11,741 | ) |   |   | 4,173 |   |   |   | 2,278 |   |   |   | 2,733 |   |   |   | 1,648 |   |
| Income tax (benefit) expense                        |   |                              | (4,610  | ) |   |   | 1,105 |   |   |   | 354 |   |   |   | 617 |   |   |   | 379 |   |
| Net (loss) income                                   |   | $                                 | (7,131  | ) |   | $ | 3,068 |   |   | $ | 1,924 |   |   | $ | 2,116 |   |   | $ | 1,269 |   |

----

|                                                                    |   | June 30, |   |
|-------------------------------------------------------------------------|--------|----------|--------|
| Selected Financial Ratios and Other Data:                               |   | 2009     |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                    |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performance Ratios:                                                     |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Return on average assets                                                |   |     | -1.47  | % |   |   | 0.63 | % |   |   | 0.40 | % |   |   | 0.54 | % |   |   | 0.39 | % |
| Return on average equity                                                |   |     | -17.76 |   |   |   | 5.95 |   |   |   | 3.74 |   |   |   | 4.09 |   |   |   | 2.82 |   |
| Interest Rate Spread (1)                                                |   |     | 2.46   |   |   |   | 2.04 |   |   |   | 1.76 |   |   |   | 2.33 |   |   |   | 2.56 |   |
| Net interest margin (2)                                                 |   |     | 2.79   |   |   |   | 2.59 |   |   |   | 2.35 |   |   |   | 2.84 |   |   |   | 3.00 |   |
| Noninterest expense to average assets                                   |   |     | 2.23   |   |   |   | 2.23 |   |   |   | 2.17 |   |   |   | 2.57 |   |   |   | 2.68 |   |
| Efficiency Ratio (3)                                                    |   | NA       |   |   |   | 72.15 |   |   |   | 80.91 |   |   |   | 77.56 |   |   |   | 82.88 |   |
| Basic earnings per share                                                |   | $        | (1.14  | ) |   | $ | 0.49 |   |   | $ | 0.29 |   |   | $ | 0.31 |   |   |   | n/a | (4) |
| Diluted earnings per share                                              |   | $        | (1.14  | ) |   | $ | 0.48 |   |   | $ | 0.28 |   |   | $ | 0.30 |   |   |   | n/a | (4) |
| Average interest-earning assets to average interest-bearing liabilities |   |     | 112.01 | % |   |   | 116.77 | % |   |   | 117.87 | % |   |   | 121.72 | % |   |   | 123.97 | % |
|                                                                    |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Capital Ratios:                                                         |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity to total assets at end of period                                 |   |     | 8.36   | % |   |   | 10.00 | % |   |   | 10.43 | % |   |   | 10.31 | % |   |   | 15.70 | % |
| Average equity to average assets                                        |   |     | 8.30   |   |   |   | 10.51 |   |   |   | 10.80 |   |   |   | 13.10 |   |   |   | 13.97 |   |
| Total capital to risk-weighted assets                                   |   |     | 10.92  |   |   |   | 16.24 |   |   |   | 16.60 |   |   |   | 13.25 |   |   |   | 21.68 |   |
| Tier 1 capital to risk-weighted assets                                  |   |     | 10.20  |   |   |   | 15.58 |   |   |   | 15.89 |   |   |   | 12.66 |   |   |   | 20.85 |   |
| Tier 1 capital to adjusted tangible assets                              |   |     | 6.62   |   |   |   | 8.34 |   |   |   | 8.22 |   |   |   | 7.26 |   |   |   | 12.17 |   |
| Dividend payout ratio                                                   |   |     | (0.25  | ) |   |   | 0.63 |   |   |   | 0.83 |   |   |   | 0.74 |   |   |   | n/a | (4) |
|                                                                    |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality Ratios:                                                   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses as a percent of total loans                   |   |     | 0.82   |   |   |   | 0.70 |   |   |   | 0.74 |   |   |   | 0.77 |   |   |   | 0.80 |   |
| Allowance for loan losses as a percent of                               |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| nonperforming loans                                                     |   |     | 34.11  |   |   |   | 121.07 |   |   |   | 115.73 |   |   |   | 109.03 |   |   |   | 1,580.23 |   |
| Net charge-offs to average outstanding loans during the period          |   |     | 0.21   |   |   |   | 0.03 |   |   |   | 0.03 |   |   |   | 0.04 |   |   |   | 0.00 |   |
| Nonperforming loans as a percent of total loans                         |   |     | 2.40   |   |   |   | 0.58 |   |   |   | 0.64 |   |   |   | 0.70 |   |   |   | 0.05 |   |
| Nonperforming assets as a percent of total assets                       |   |     | 1.67   |   |   |   | 0.29 |   |   |   | 0.31 |   |   |   | 0.31 |   |   |   | 0.03 |   |
|                                                                    |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Data:                                                             |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Number of full-service offices                                          |   |     | 7      |   |   |   | 7 |   |   |   | 7 |   |   |   | 6 |   |   |   | 4 |   |

|   | (1) | Represents the difference between the weighted average yield on average interest-earning assets and the weighted average cost of interest-bearing liabilities. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | (2) | Represents net interest income as a percent of average interest-earning assets.                                                                                |
|   | (3) | Represents noninterest expense divided by the sum of net interest income and noninterest income.                                                               |
|   | (4) | Because the formation of the Company was completed on October 4, 2004, per share earnings data is not meaningful for the year ended June 30, 2005.             |

| ITEM 7. | Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|---------|---------------------------------------------------------------------------------------------|

----

----

----

----

|                                                           |                     |           |    |               |           |   |   |               |   |   |           |    |   |           |    |               |       |   |   |               |   |   |           |    |   |       |    |
|----------------------------------------------------------------|--------------------------|----------------|---------|--------------------|----------------|--------|--------|--------------------|--------|--------|----------------|---------|--------|----------------|---------|--------------------|------------|--------|--------|--------------------|--------|--------|----------------|---------|--------|------------|---------|
|                                                           |                     | 2009           |    |               | 2008           |   |   | 2007               |   |
| Years ended June 30,(dollars in thousands)                     |                     | AverageBalance |    |               | Income/Expense |   |   | Yield/Cost         |   |   | AverageBalance |    |   | Income/Expense |    |               | Yield/Cost |   |   | AverageBalance     |   |   | Income/Expense |    |   | Yield/Cost |    |
| Earning Assets:                                                |                     |           |    |               |           |   |   |               |   |   |           |    |   |           |    |               |       |   |   |               |   |   |           |    |   |       |    |
| Investment securities                                          |      | $              | 192,014 |     |           | $      | 10,584 |     |   |   | 5.51           | %  |   | $              | 219,397 |     |       | $      | 11,821 |     |   |   | 5.39           | %  |   | $          | 227,601 |     |   | $ | 11,243 |     |   |   | 4.94 | % |
| Loans                                                          |                     |           | 254,742 |               |           |   | 14,718 |               |   |   | 5.78           | %       |   |           | 240,403 |               |       |   | 15,274 |               |   |   | 6.35           | %       |   |       | 218,974 |   |   |   | 13,946 |   |   |   | 6.37 | % |
| Other earning assets                                           |                     |           | 3,898   |               |           |   | 16     |               |   |   | 0.41           | %       |   |           | 2,921   |               |       |   | 110    |               |   |   | 3.77           | %       |   |       | 3,406   |   |   |   | 175 |   |   |   | 5.14 | % |
| Total interest-earnings assets                                 |                     |           | 450,654 |               |           |   | 25,318 |               |   |   | 5.62           | %       |   |           | 462,721 |               |       |   | 27,205 |               |   |   | 5.88           | %       |   |       | 449,981 |   |   |   | 25,364 |   |   |   | 5.64 | % |
| Non-interest-earning assets                                    |                     |           | 33,191  |               |           |   |   |               |   |   |           |    |   |           | 27,909  |               |       |   |   |               |   |   |           |    |   |       | 26,607  |   |   |   |   |   |   |   |   |   |
| Total assets                                                   |                     | $              | 483,845 |               |           |   |   |               |   |   |           |    |   | $              | 490,630 |               |       |   |   |               |   |   |           |    |   | $          | 476,588 |   |   |   |   |   |   |   |   |   |
|                                                           |                     |           |    |               |           |   |   |               |   |   |           |    |   |           |    |               |       |   |   |               |   |   |           |    |   |       |    |   |   |   |   |   |   |   |   |   |
|                                                           |                     |           |    |               |           |   |   |               |   |   |           |    |   |           |    |               |       |   |   |               |   |   |           |    |   |       |    |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                  |                     |           |    |               |           |   |   |               |   |   |           |    |   |           |    |               |       |   |   |               |   |   |           |    |   |       |    |   |   |   |   |   |   |   |   |   |
| NOW accounts                                                   |                     | $              | 42,360  |               |           |   | 944    |               |   |   | 2.23           | %       |   | $              | 29,813  |               |       |   | 777    |               |   |   | 2.61           | %       |   | $          | 24,798  |   |   |   | 391 |   |   |   | 1.58 | % |
| Savings accounts                                               |                     |           | 45,684  |               |           |   | 250    |               |   |   | 0.55           | %       |   |           | 47,397  |               |       |   | 329    |               |   |   | 0.69           | %       |   |       | 51,652  |   |   |   | 383 |   |   |   | 0.74 | % |
| Money market accounts                                          |                     |           | 12,006  |               |           |   | 188    |               |   |   | 1.57           | %       |   |           | 15,496  |               |       |   | 300    |               |   |   | 1.94           | %       |   |       | 20,210  |   |   |   | 351 |   |   |   | 1.74 | % |
| Time deposits                                                  |                     |           | 156,074 |               |           |   | 5,525  |               |   |   | 3.54           | %       |   |           | 153,262 |               |       |   | 6,967  |               |   |   | 4.55           | %       |   |       | 154,501 |   |   |   | 6,930 |   |   |   | 4.49 | % |
| Borrowed money                                                 |                     |           | 146,220 |               |           |   | 5,819  |               |   |   | 3.98           | %       |   |           | 150,294 |               |       |   | 6,856  |               |   |   | 4.56           | %       |   |       | 130,609 |   |   |   | 6,740 |   |   |   | 5.16 | % |
| Total interest-bearing liabilities                             |                     |           | 402,344 |               |           |   | 12,726 |               |   |   | 3.16           | %       |   |           | 396,262 |               |       |   | 15,229 |               |   |   | 3.84           | %       |   |       | 381,770 |   |   |   | 14,795 |   |   |   | 3.88 | % |
| Non-interest-bearing demand deposits                           |                     |           | 36,219  |               |           |   |   |               |   |   |           |    |   |           | 38,846  |               |       |   |   |               |   |   |           |    |   |       | 40,264  |   |   |   |   |   |   |   |   |   |
| Other non-interest-bearing liabilities                         |                     |           | 5,121   |               |           |   |   |               |   |   |           |    |   |           | 3,954   |               |       |   |   |               |   |   |           |    |   |       | 3,096   |   |   |   |   |   |   |   |   |   |
| Capital accounts                                               |                     |           | 40,161  |               |           |   |   |               |   |   |           |    |   |           | 51,568  |               |       |   |   |               |   |   |           |    |   |       | 51,458  |   |   |   |   |   |   |   |   |   |
| Total liabilities and capital accounts                         |                     | $              | 483,845 |               |           |   |   |               |   |   |           |    |   | $              | 490,630 |               |       |   |   |               |   |   |           |    |   | $          | 476,588 |   |   |   |   |   |   |   |   |   |
|                                                           |                     |           |    |               |           |   |   |               |   |   |           |    |   |           |    |               |       |   |   |               |   |   |           |    |   |       |    |   |   |   |   |   |   |   |   |   |
| Net interest income                                            |                     |           |    |               |           | $      | 12,592 |               |   |   |           |    |   |           |    |               |       | $      | 11,976 |               |   |   |           |    |   |       |    |   |   | $ | 10,569 |   |   |   |   |   |
| Interest rate spread                                           |                     |           |    |               |           |   |   |               |   |   | 2.46           | %       |   |           |    |               |       |   |   |               |   |   | 2.04           | %       |   |       |    |   |   |   |   |   |   |   | 1.76 | % |
| Net interest-earning assets                                    |                     | $              | 48,310  |               |           |   |   |               |   |   |           |    |   | $              | 66,459  |               |       |   |   |               |   |   |           |    |   | $          | 68,211  |   |   |   |   |   |   |   |   |   |
| Net interest margin                                            |                     |           |    |               |           |   |   |               |   |   | 2.79           | %       |   |           |    |               |       |   |   |               |   |   | 2.59           | %       |   |       |    |   |   |   |   |   |   |   | 2.35 | % |
| Average earning assets to average interest-bearing liabilities |                     |           |    |               |           |   |   |               |   |   | 112.01         | %       |   |           |    |               |       |   |   |               |   |   | 116.77         | %       |   |       |    |   |   |   |   |   |   |   | 117.87 | % |

----

----

|   |                               |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|--------|------------------------------------|--------|----------------------------|--------|--------|----------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|   |                               |   | 2009 Compared to 2008      |   |   | 2008 Compared to 2007      |   |
|   | (Dollars in thousands)             |   | Increase (Decrease) Due to |   |   | Increase (Decrease) Due to |   |
|   | INTEREST-EARNING ASSETS:           |   | Rate                       |   |   | Volume                     |   |   | Net    |   |   | Rate   |   |   | Volume |   |   | Net    |   |
|   | Interest and Dividend Income:      |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Investment securities              |   | $                          | 267    |   |                       | $      | (1,504 | )      |   | $      | (1,237 | )      |   | $      | 994    |   |   | $      | (416 | ) |   | $ | 578 |   |
|   | Loans                              |   |                       | (1,434 | )      |                       |   | 878    |   |   |   | (556   | )      |   |   | (34    | )      |   |   | 1,362 |   |   |   | 1,328 |   |
|   | Other interest-earning assets      |   |                       | (122   | )      |                       |   | 28     |   |   |   | (94    | )      |   |   | (42    | )      |   |   | (23 | ) |   |   | (65 | ) |
|   | TOTAL INTEREST-EARNING ASSETS      |   |                       | (1,289 | )      |                       |   | (598   | )      |   |   | (1,887 | )      |   |   | 918    |   |   |   | 923 |   |   |   | 1,841 |   |
|   |                               |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | INTEREST-BEARING LIABILITIES:      |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | Interest Expense:                  |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | NOW accounts                       |   |                       | (125   | )      |                       |   | 292    |   |   |   | 167    |   |   |   | 296    |   |   |   | 91 |   |   |   | 387 |   |
|   | Savings accounts                   |   |                       | (67    | )      |                       |   | (12    | )      |   |   | (79    | )      |   |   | (24    | )      |   |   | (30 | ) |   |   | (54 | ) |
|   | Money Market accounts              |   |                       | (51    | )      |                       |   | (61    | )      |   |   | (112   | )      |   |   | 37     |   |   |   | (88 | ) |   |   | (51 | ) |
|   | Time deposits                      |   |                       | (1,568 | )      |                       |   | 126    |   |   |   | (1,442 | )      |   |   | 93     |   |   |   | (56 | ) |   |   | 37 |   |
|   | Other borrowed money               |   |                       | (855   | )      |                       |   | (182   | )      |   |   | (1,037 | )      |   |   | (834   | )      |   |   | 949 |   |   |   | 115 |   |
|   | TOTAL INTEREST-BEARING LIABILITIES |   |                       | (2,666 | )      |                       |   | 163    |   |   |   | (2,503 | )      |   |   | (432   | )      |   |   | 866 |   |   |   | 434 |   |
|   |                               |   |                       |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   | CHANGE IN NET INTEREST INCOME      |   | $                          | 1,377  |   |                       | $      | (761   | )      |   | $      | 616    |   |   | $      | 1,350  |   |   | $      | 57 |   |   | $ | 1,407 |   |

----

|                                   |   |                                             |   |                                             |   |
|----------------------------------------|--------|--------------------------------------------------|--------|--------------------------------------------------|--------|
| Net Interest Income At-Risk            |   |
| Change in Interest Rates(Basis Points) |   | Estimated Increase (Decrease)in NIIJune 30, 2009 |   | Estimated Increase (Decrease)in NIIJune 30, 2008 |   |
|                                   |   |                                             |   |                                             |   |
| Stable                                 |   |                                             |   |                                             |   |
| + 100                                  |   | -1.50%                                           |   | -2.75%                                           |   |
| + 200                                  |   | -4.14%                                           |   | -7.48%                                           |   |

----

|                                      |   |             |   |                                |   |          |   |       |                             |   |                                              |   |   |   |   |   |
|-------------------------------------------|--------|------------------|--------|-------------------------------------|--------|---------------|--------|------------|----------------------------------|--------|---------------------------------------------------|--------|--------|--------|--------|--------|
|                                      |   |             |   |                                |   |          |   |       |                             |   | NPV as a Percentage of PresentValue of Assets (3) |   |
| Change inInterest Rates(basis points) (1) |   | EstimatedNPV (2) |   | Estimated Increase (Decrease) inNPV |   |          |   |       | Increase(Decrease)(basis points) |   |
|                                      |   | Amount           |   | Percent                             |   | NPV Ratio (4) |   |       |
|                                      |   |             |   |                                |   |          |   |       |                             |   |                                              |   |   |   |   |   |
| +300                                      |   | $                | 23,792 |                                | $      | (13,542       | )      |  -36% |                             |   | 5.08%                                             |   |   | -248   |   |
| +200                                      |   | $                | 30,679 |                                | $      | (6,655        | )      |  -18% |                             |   | 6.41%                                             |   |   | -115   |   |
| +100                                      |   | $                | 35,167 |                                | $      | (2,167        | )      |  -6%  |                             |   | 7.22%                                             |   |   | -34    |   |
| 0                                         |   | $                | 37,334 |                                | $      | —       |   |  0%   |                             |   | 7.56%                                             |   |   | 0      |   |
| -100                                      |   | $                | 36,871 |                                | $      | (463          | )      |  -1%  |                             |   | 7.39%                                             |   |   | -16    |   |

|   | (1) | Assumes an instantaneous uniform change in interest rates at all maturities.                                         |
|--------|-----|----------------------------------------------------------------------------------------------------------------------|
|   | (2) | NPV is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts. |
|   | (3) | Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.   |
|   | (4) | NPV ratio represents NPV divided by the present value of assets.                                                     |

----

|                 |                                                       |
|----------------------|------------------------------------------------------------|
| ITEM 7A.   | Quantitative and Qualitative Disclosures About Market Risk |

|    |                                        |
|---------|---------------------------------------------|
| ITEM 8. | Financial Statements and Supplementary Data |

----

|                                    |
|-----------------------------------------|
| The Board of Directors and Stockholders |
| PSB Holdings, Inc.                      |
| Putnam, Connecticut                     |

|                        |                                   |
|-----------------------------|----------------------------------------|
|                        |                                   |
|                        |                                        |
|                        | SHATSWELL, MacLEOD & COMPANY, P.C. |
|                        |                                   |
| West Peabody, Massachusetts |                                   |
| September 17, 2009          |                                   |

| 83 PINE STREET ● WEST PEABODY, MASSACHUSETTS 01960-3635 ● TELEPHONE (978) 535-0206 ● FACSIMILE (978) 535-9908 |
|------------------------------------------------------------------------------------------------------------------------------------------------|
| smc@shatswell.com                                                                                                                              |   | www.shatswell.com |

----

|   |  |   |
|--------|--|--------|

----

|                   |
|------------------------|
| June 30, 2009 and 2008 |
| (In Thousands)         |

| ASSETS                                                                                                                                                                  |   | 2009   |    |   | 2008   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Cash and due from depository institutions                                                                                                                               |   | $      | 5,509   |   |   | $      | 7,026 |   |
| Federal funds sold                                                                                                                                                      |   |   | 550     |   |   |   | 1,120 |   |
| Cash and cash equivalents                                                                                                                                               |   |   | 6,059   |   |   |   | 8,146 |   |
| Investments in available-for-sale securities (at fair value)                                                                                                            |   |   | 164,888 |   |   |   | 212,083 |   |
| Investments in held-to-maturity securities (fair value of $1,945)                                                                                                       |   |   | 2,000   |   |   |   | — |   |
| Federal Home Loan Bank stock, at cost                                                                                                                                   |   |   | 8,056   |   |   |   | 7,943 |   |
| Loans held-for-sale                                                                                                                                                     |   |   | 1,200   |   |   |   | 675 |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |
| Loans                                                                                                                                                                   |   |   | 266,517 |   |   |   | 244,486 |   |
| Allowance for loan losses                                                                                                                                               |   |   | (2,200  | )      |   |   | (1,758 | ) |
| Net loans                                                                                                                                                               |   |   | 264,317 |   |   |   | 242,728 |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |
| Premises and equipment                                                                                                                                                  |   |   | 5,159   |   |   |   | 3,706 |   |
| Accrued interest receivable                                                                                                                                             |   |   | 1,891   |   |   |   | 2,273 |   |
| Other real estate owned                                                                                                                                                 |   |   | 1,211   |   |   |   | — |   |
| Goodwill                                                                                                                                                                |   |   | 6,912   |   |   |   | 6,912 |   |
| Intangible assets                                                                                                                                                       |   |   | 651     |   |   |   | 857 |   |
| Bank owned life insurance                                                                                                                                               |   |   | 5,912   |   |   |   | 5,798 |   |
| Other assets                                                                                                                                                            |   |   | 9,093   |   |   |   | 3,378 |   |
| Total assets                                                                                                                                                            |   | $      | 477,349 |   |   | $      | 494,499 |   |
|                                                                                                                                                                    |   |   |    |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’EQUITY                                                                                                                               |   |   |    |   |   |   |   |   |
| Deposits:                                                                                                                                                               |   |   |    |   |   |   |   |   |
| Noninterest-bearing                                                                                                                                                     |   | $      | 35,246  |   |   | $      | 37,195 |   |
| Interest-bearing                                                                                                                                                        |   |   | 272,853 |   |   |   | 246,529 |   |
| Total deposits                                                                                                                                                          |   |   | 308,099 |   |   |   | 283,724 |   |
| Mortgagors’ escrow accounts                                                                                                                                       |   |   | 1,564   |   |   |   | 1,423 |   |
| Federal Home Loan Bank advances                                                                                                                                         |   |   | 120,500 |   |   |   | 150,215 |   |
| Securities sold under agreements to repurchase                                                                                                                          |   |   | 4,471   |   |   |   | 6,406 |   |
| Other liabilities                                                                                                                                                       |   |   | 2,819   |   |   |   | 3,294 |   |
| Total liabilities                                                                                                                                                       |   |   | 437,453 |   |   |   | 445,062 |   |
| Stockholders’ equity:                                                                                                                                             |   |   |    |   |   |   |   |   |
| Preferred stock, $.10 par value, 1,000,000 shares authorized, no shares issued and outstanding                                                                          |   |   | — |   |   |   | — |   |
| Common stock, $.10 par value, 12,000,000 shares authorized, 6,943,125 shares issued, 6,529,209 and 6,530,509 shares outstanding at June 30, 2009 and 2008, respectively |   |   | 694     |   |   |   | 694 |   |
| Additional paid-in capital                                                                                                                                              |   |   | 30,656  |   |   |   | 30,795 |   |
| Retained earnings                                                                                                                                                       |   |   | 20,383  |   |   |   | 28,663 |   |
| Accumulated other comprehensive loss                                                                                                                                    |   |   | (5,277  | )      |   |   | (3,816 | ) |
| Unearned ESOP shares                                                                                                                                                    |   |   | (1,940  | )      |   |   | (2,089 | ) |
| Unearned stock awards                                                                                                                                                   |   |   | (409    | )      |   |   | (605 | ) |
| Treasury stock, at cost (413,916 and 412,616 shares at June 30, 2009 and 2008, respectively)                                                                            |   |   | (4,211  | )      |   |   | (4,205 | ) |
| Total stockholders’ equity                                                                                                                                        |   |   | 39,896  |   |   |   | 49,437 |   |
| Total liabilities and stockholders’ equity                                                                                                                        |   | $      | 477,349 |   |   | $      | 494,499 |   |

----

|                               |
|------------------------------------|
| Years Ended June 30, 2009 and 2008 |
| (In Thousands)                     |

|                                                                                                                      |   | 2009   |      |   | 2008   |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|--------|-----------|--------|--------|--------|
| Interest and dividend income:                                                                                             |   |   |      |   |   |   |
| Interest and fees on loans                                                                                                |   | $      | 14,718    |   |   | $      | 15,274 |   |
| Interest on debt securities:                                                                                              |   |   |      |   |   |   |   |   |
| Taxable                                                                                                                   |   |   | 9,607     |   |   |   | 10,224 |   |
| Tax-exempt                                                                                                                |   |   | 138       |   |   |   | 344 |   |
| Dividends on marketable equity securities                                                                                 |   |   | 729       |   |   |   | 819 |   |
| Dividends on Federal Home Loan Bank stock                                                                                 |   |   | 110       |   |   |   | 434 |   |
| Interest on federal funds sold and other                                                                                  |   |   | 16        |   |   |   | 110 |   |
| Total interest and dividend income                                                                                        |   |   | 25,318    |   |   |   | 27,205 |   |
| Interest expense:                                                                                                         |   |   |      |   |   |   |   |   |
| Interest on deposits                                                                                                      |   |   | 6,907     |   |   |   | 8,373 |   |
| Interest on Federal Home Loan Bank advances                                                                               |   |   | 5,693     |   |   |   | 6,725 |   |
| Interest on securities sold under agreements to repurchase                                                                |   |   | 126       |   |   |   | 131 |   |
| Total interest expense                                                                                                    |   |   | 12,726    |   |   |   | 15,229 |   |
| Net interest and dividend income                                                                                          |   |   | 12,592    |   |   |   | 11,976 |   |
| Provision for loan losses                                                                                                 |   |   | 967       |   |   |   | 51 |   |
| Net interest and dividend income after provision for loan losses                                                          |   |   | 11,625    |   |   |   | 11,925 |   |
| Noninterest (charges) income:                                                                                             |   |   |      |   |   |   |   |   |
| Fees for services                                                                                                         |   |   | 2,337     |   |   |   | 2,372 |   |
| Write-down of securities (includes total losses of $20,792, net of $4,821 recognized in other comprehensive loss, pretax) |   |   | (15,971   | )      |   |   | — |   |
| Gain on sales and calls of securities, net                                                                                |   |   | 128       |   |   |   | 217 |   |
| Mortgage banking activities                                                                                               |   |   | 173       |   |   |   | 105 |   |
| Net commissions from brokerage service                                                                                    |   |   | 152       |   |   |   | 120 |   |
| Bank owned life insurance income                                                                                          |   |   | 457       |   |   |   | 259 |   |
| Other income                                                                                                              |   |   | 164       |   |   |   | 120 |   |
| Total noninterest (charges) income                                                                                        |   |   | (12,560   | )      |   |   | 3,193 |   |
| Noninterest expense:                                                                                                      |   |   |      |   |   |   |   |   |
| Salaries and employee benefits                                                                                            |   |   | 5,785     |   |   |   | 5,983 |   |
| Occupancy and equipment expense                                                                                           |   |   | 1,172     |   |   |   | 1,174 |   |
| Data processing                                                                                                           |   |   | 699       |   |   |   | 829 |   |
| Advertising and marketing                                                                                                 |   |   | 391       |   |   |   | 452 |   |
| Amortization of intangible asset                                                                                          |   |   | 206       |   |   |   | 234 |   |
| Deposit insurance assessment                                                                                              |   |   | 695       |   |   |   | 63 |   |
| Other expense                                                                                                             |   |   | 1,858     |   |   |   | 2,210 |   |
| Total noninterest expense                                                                                                 |   |   | 10,806    |   |   |   | 10,945 |   |
| (Loss) income before income tax                                                                                           |   |   | (11,741   | )      |   |   | 4,173 |   |
| Income tax (benefit) expense                                                                                              |   |   | (4,610    | )      |   |   | 1,105 |   |
| Net (loss) income                                                                                                         |   | $      | (7,131    | )      |   | $      | 3,068 |   |
|                                                                                                                      |   |   |      |   |   |   |   |   |
| (Loss) earnings per common share                                                                                          |   |   |      |   |   |   |   |   |
| Basic                                                                                                                     |   | $      | (1.14     | )      |   | $      | 0.49 |   |
| Diluted                                                                                                                   |   | $      | (1.14     | )      |   | $      | 0.48 |   |
|                                                                                                                      |   |   |      |   |   |   |   |   |
| Weighted average common shares outstanding                                                                                |   |   |      |   |   |   |   |   |
| Basic                                                                                                                     |   |   | 6,279,399 |   |   |   | 6,297,478 |   |
| Diluted                                                                                                                   |   |   | 6,279,399 |   |   |   | 6,370,683 |   |

----

|                                          |
|-----------------------------------------------|
| Years Ended June 30, 2009 and 2008            |
| (Dollars in thousands, except per share data) |

|                                                                                        |   | CommonStock |    |   | AdditionalPaid-inCapital |   |    | RetainedEarnings |   |   | AccumulatedOtherComprehensiveLoss (1) |   |   | UnearnedESOPShares |    |   | UnearnedStockAwards |   |    | TreasuryStock |   |   | Total   |   |
|---------------------------------------------------------------------------------------------|--------|-------------|---------|--------|--------------------------|--------|---------|------------------|--------|--------|---------------------------------------|--------|--------|--------------------|---------|--------|---------------------|--------|---------|---------------|--------|--------|---------|--------|
|                                                                                        |   |        |    |   |                     |   |    |             |   |   |                                  |   |   |               |    |   |                |   |    |          |   |   |    |   |
| Balance, June 30, 2007                                                                      |   | $           | 694     |   |                     | $      | 30,465  |             |   | $      | 26,441                                |   |   | $                  | (1,382  | )      |                | $      | (2,222  | )             |   | $      | (978    | )      |   | $ | (1,767 | ) |   | $ | 51,251 |   |
| Comprehensive income:                                                                       |   |        |    |   |                     |   |    |             |   |   |                                  |   |   |               |    |   |                |   |    |          |   |   |    |   |   |   |   |   |   |   |   |   |
| Net income                                                                                  |   |        | — |   |                     |   | — |             |   |   | 3,068                                 |   |   |               | — |   |                |   | — |          |   |   | — |   |   |   | — |   |   |   | — |   |
| Net change in unrealized holding losses on available-for-sale securities, net of tax effect |   |        | — |   |                     |   | — |             |   |   | —                               |   |   |               | (2,434  | )      |                |   | — |          |   |   | — |   |   |   | — |   |   |   | — |   |
| Comprehensive income                                                                        |   |        | — |   |                     |   | — |             |   |   | —                               |   |   |               | — |   |                |   | — |          |   |   | — |   |   |   | — |   |   |   | 634 |   |
| Dividends declared                                                                          |   |        | — |   |                     |   | — |             |   |   | (846                                  | )      |   |               | — |   |                |   | — |          |   |   | — |   |   |   | — |   |   |   | (846 | ) |
| ESOP shares released                                                                        |   |        | — |   |                     |   | (10     | )                |   |   | —                               |   |   |               | — |   |                |   | 133     |          |   |   | — |   |   |   | — |   |   |   | 123 |   |
| Incentive plan shares earned                                                                |   |        | — |   |                     |   | — |             |   |   | —                               |   |   |               | — |   |                |   | — |          |   |   | 352     |   |   |   | — |   |   |   | 352 |   |
| Purchase of treasury stock                                                                  |   |        | — |   |                     |   | — |             |   |   | —                               |   |   |               | — |   |                |   | — |          |   |   | — |   |   |   | (2,417 | ) |   |   | (2,417 | ) |
| Stock-based compensation expense                                                            |   |        | — |   |                     |   | 340     |             |   |   | —                               |   |   |               | — |   |                |   | — |          |   |   | 21      |   |   |   | (21 | ) |   |   | 340 |   |
| Balance, June 30, 2008                                                                      |   |        | 694     |   |                     |   | 30,795  |             |   |   | 28,663                                |   |   |               | (3,816  | )      |                |   | (2,089  | )             |   |   | (605    | )      |   |   | (4,205 | ) |   |   | 49,437 |   |
| Comprehensive loss:                                                                         |   |        |    |   |                     |   |    |             |   |   |                                  |   |   |               |    |   |                |   |    |          |   |   |    |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                    |   |        | — |   |                     |   | — |             |   |   | (7,131                                | )      |   |               | — |   |                |   | — |          |   |   | — |   |   |   | — |   |   |   | — |   |
| Net change in unrealized holding losses on available-for-sale securities, net of tax effect |   |        | — |   |                     |   | — |             |   |   | —                               |   |   |               | (1,461  | )      |                |   | — |          |   |   | — |   |   |   | — |   |   |   | — |   |
| Comprehensive loss                                                                          |   |        | — |   |                     |   | — |             |   |   | —                               |   |   |               | — |   |                |   | — |          |   |   | — |   |   |   | — |   |   |   | (8,592 | ) |
| Dividends declared                                                                          |   |        | — |   |                     |   | — |             |   |   | (1,084                                | )      |   |               | — |   |                |   | — |          |   |   | — |   |   |   | — |   |   |   | (1,084 | ) |
| ESOP shares released                                                                        |   |        | — |   |                     |   | (64     | )                |   |   | —                               |   |   |               | — |   |                |   | 149     |          |   |   | — |   |   |   | — |   |   |   | 85 |   |
| Purchase of treasury stock                                                                  |   |        | — |   |                     |   | — |             |   |   | —                               |   |   |               | — |   |                |   | — |          |   |   | — |   |   |   | (6 | ) |   |   | (6 | ) |
| Stock-based compensation expense                                                            |   |        | — |   |                     |   | (75     | )                |   |   | —                               |   |   |               | — |   |                |   | — |          |   |   | 196     |   |   |   | — |   |   |   | 121 |   |
| Cumulative effect of a change in accounting principle – initial adoption of EITF 06-4 |   |        | — |   |                     |   | — |             |   |   | (65                                   | )      |   |               | — |   |                |   | — |          |   |   | — |   |   |   | — |   |   |   | (65 | ) |
| Balance, June 30, 2009                                                                      |   | $           | 694     |   |                     | $      | 30,656  |             |   | $      | 20,383                                |   |   | $                  | (5,277  | )      |                | $      | (1,940  | )             |   | $      | (409    | )      |   | $ | (4,211 | ) |   | $ | 39,896 |   |

| (1) | The June 30, 2009 ending balance includes $4,821,000 of unrealized losses in which other-than-temporary impairment has been recognized. |
|-----|-----------------------------------------------------------------------------------------------------------------------------------------|

----

|                                          |
|-----------------------------------------------|
| Years Ended June 30, 2009 and 2008            |
| (Dollars in thousands, except per share data) |
| (Continued)                                   |

|                                                                  |   |           |    |   |   |   |
|-----------------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                                                  |   | 2009           |    |   | 2008   |   |
|                                                                  |   | (In Thousands) |    |
| Unrealized holding losses on available-for-sale securities:           |   |           |    |   |   |   |
| Net unrealized holding losses on available-for-sale securities        |   | $              | (18,052 | )      |   | $      | (3,303 | ) |
| Reclassification adjustment for losses (gains) realized in net income |   |           | 15,843  |   |   |   | (217 | ) |
|                                                                  |   |           | (2,209  | )      |   |   | (3,520 | ) |
| Income tax benefit                                                    |   |           | 748     |   |   |   | 1,086 |   |
| Other comprehensive loss, net of tax                                  |   | $              | (1,461  | )      |   | $      | (2,434 | ) |

----

|                               |
|------------------------------------|
| Years Ended June 30, 2009 and 2008 |
| (In Thousands)                     |

|                                                                                     |   | 2009   |    |   | 2008   |   |
|------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
| Cash flows from operating activities:                                                    |   |   |    |   |   |   |
| Net (loss) income                                                                        |   | $      | (7,131  | )      |   | $      | 3,068 |   |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |   |   |    |   |   |   |   |   |
| Amortization (accretion) of securities, net                                              |   |   | 101     |   |   |   | (61 | ) |
| Gain on sales and calls of securities, net                                               |   |   | (128    | )      |   |   | (217 | ) |
| Write down of securities                                                                 |   |   | 15,971  |   |   |   | — |   |
| Net (increase) decrease in loans held-for-sale                                           |   |   | (525    | )      |   |   | 803 |   |
| Amortization of premium on purchased loans                                               |   |   | 1       |   |   |   | 22 |   |
| Change in deferred loan costs, net                                                       |   |   | (5      | )      |   |   | 62 |   |
| Provision for loan losses                                                                |   |   | 967     |   |   |   | 51 |   |
| Loss on sale of other real estate owned                                                  |   |   | 7       |   |   |   | — |   |
| Loss on disposal of equipment                                                            |   |   | 2       |   |   |   | — |   |
| Depreciation and amortization                                                            |   |   | 496     |   |   |   | 532 |   |
| Amortization of core deposit intangible                                                  |   |   | 206     |   |   |   | 234 |   |
| (Increase) decrease in accrued interest receivable and other assets                      |   |   | (233    | )      |   |   | 533 |   |
| Increase in cash surrender value of bank owned life insurance                            |   |   | (295    | )      |   |   | (262 | ) |
| Bank owned life insurance death benefit income                                           |   |   | (162    | )      |   |   | — |   |
| (Decrease) increase in other liabilities                                                 |   |   | (446    | )      |   |   | 140 |   |
| Deferred tax (benefit) expense                                                           |   |   | (4,427  | )      |   |   | 411 |   |
| ESOP shares released                                                                     |   |   | 85      |   |   |   | 123 |   |
| Stock-based compensation expense                                                         |   |   | 165     |   |   |   | 413 |   |
|                                                                                     |   |   |    |   |   |   |   |   |
| Net cash provided by operating activities                                                |   |   | 4,649   |   |   |   | 5,852 |   |
|                                                                                     |   |   |    |   |   |   |   |   |
| Cash flows from investing activities:                                                    |   |   |    |   |   |   |   |   |
| Purchases of available-for-sale securities                                               |   |   | (12,847 | )      |   |   | (75,548 | ) |
| Proceeds from sales of available-for-sale securities                                     |   |   | 4,629   |   |   |   | 30,043 |   |
| Proceeds from maturities of available-for-sale securities                                |   |   | 37,260  |   |   |   | 44,739 |   |
| Purchase of held-to-maturity securities                                                  |   |   | (2,000  | )      |   |   | — |   |
| Purchase of Federal Home Loan Bank stock                                                 |   |   | (113    | )      |   |   | — |   |
| Loan originations and principal collections, net                                         |   |   | (23,884 | )      |   |   | (12,012 | ) |
| Recoveries of loans previously charged off                                               |   |   | 46      |   |   |   | 51 |   |
| Proceeds from sale of other real estate owned                                            |   |   | 71      |   |   |   | — |   |
| Proceeds from surrender of bank owned life insurance policy                              |   |   | 343     |   |   |   | — |   |
| Net cash provided by branch acquisition                                                  |   |   | 708     |   |   |   | — |   |
| Capital expenditures                                                                     |   |   | (919    | )      |   |   | (168 | ) |
|                                                                                     |   |   |    |   |   |   |   |   |
| Net cash provided by (used in) investing activities                                      |   |   | 3,294   |   |   |   | (12,895 | ) |
|                                                                                     |   |   |    |   |   |   |   |   |
| Cash flows from financing activities:                                                    |   |   |    |   |   |   |   |   |
| Net increase (decrease) in demand deposits, NOW and savings accounts                     |   |   | 17,620  |   |   |   | (5,931 | ) |
| Net increase (decrease) in time deposits                                                 |   |   | 5,087   |   |   |   | (3,818 | ) |
| Net increase in mortgagors’ escrow accounts                                        |   |   | 141     |   |   |   | 143 |   |
| Net change in short-term Federal Home Loan Bank advances                                 |   |   | (13,000 | )      |   |   | (10,000 | ) |
| Proceeds from Federal Home Loan Bank advances                                            |   |   | 24,000  |   |   |   | 89,000 |   |
| Repayment of Federal Home Loan Bank advances                                             |   |   | (40,715 | )      |   |   | (66,668 | ) |
| Net (decrease) increase in securities sold under agreements to repurchase                |   |   | (1,935  | )      |   |   | 2,432 |   |
| Acquisition of treasury stock                                                            |   |   | (6      | )      |   |   | (2,417 | ) |
| Dividends paid                                                                           |   |   | (1,222  | )      |   |   | (750 | ) |
|                                                                                     |   |   |    |   |   |   |   |   |
| Net cash (used in) provided by financing activities                                      |   |   | (10,030 | )      |   |   | 1,991 |   |

----

|                               |
|------------------------------------|
| Years Ended June 30, 2009 and 2008 |
| (In Thousands)                     |
| (continued)                        |

|                                                          |   | 2009   |   |   | 2008   |   |
|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|
| Net decrease in cash and cash equivalents                     |   |   | (2,087 | )      |   |   | (5,052 | ) |
| Cash and cash equivalents at beginning of year                |   |   | 8,146  |   |   |   | 13,198 |   |
| Cash and cash equivalents at end of year                      |   | $      | 6,059  |   |   | $      | 8,146 |   |
|                                                          |   |   |   |   |   |   |   |   |
| Supplemental disclosures:                                     |   |   |   |   |   |   |   |   |
| Interest paid                                                 |   | $      | 12,793 |   |   | $      | 15,319 |   |
| Income taxes paid                                             |   |   | 407    |   |   |   | 385 |   |
| Loans transferred to other real estate owned                  |   |   | 1,289  |   |   |   | — |   |
|                                                          |   |   |   |   |   |   |   |   |
| Savings Institute Bank & Trust Company Branch Acquisition |   |   |   |   |   |   |   |   |
| Net loans acquired                                            |   | $      | 3      |   |   |   |   |   |
| Fixed assets acquired                                         |   |   | 950    |   |   |   |   |   |
| Other assets                                                  |   |   | 7      |   |   |   |   |   |
|                                                          |   |   | 960    |   |   |   |   |   |
|                                                          |   |   |   |   |   |   |   |   |
| Deposits assumed                                              |   |   | 1,668  |   |   |   |   |   |
| Net cash provided by acquisition                              |   | $      | 708    |   |   |   |   |   |

----

|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | USE OF ESTIMATES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidatedfinancial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | BASIS OF PRESENTATION:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   | The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, the Bank, and the Bank’s wholly owned subsidiaries, Windham North, LLC, PSB Realty, LLC and Putnam Bank Mortgage Servicing Company. All significant intercompany accounts and transactions have been eliminated in the consolidation.                                                                                                                                                     |

----

|   | CASH AND CASH EQUIVALENTS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | For the purposes of reporting cash flows, cash and cash equivalents include cash, amounts due from depository institutions and federal funds sold.                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Cash and due from banks as of June 30, 2009 includes $5,700,000, which is subject to withdrawals and usage restrictions to satisfy the reserve requirements of the Federal Reserve Bank and for other purposes.                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | SECURITIES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Investments in debt securities are adjusted for amortization of premiums and accretion of discounts computed so as to approximate the interest method. Gains or losses on sales of investment securities are computed on a specific identification basis.                                                                                                                                                                                                                                                                                                                      |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | The Company classifies debt and equity securities into one of three categories: held-to-maturity, available-for-sale, or trading. These security classifications may be modified after acquisition only under certain specified conditions. In general, securities may be classified as held-to-maturity only if the Company has the positive intentand ability to hold them to maturity. Trading securities are defined as those bought and held principally for the purpose of selling them in the near term. All other securities must be classified as available-for-sale. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | —                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Held-to-maturity securities are measured at amortized cost in the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings, or in a separate component of capital. They are merely disclosed in the notes to the consolidated financial statements. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | —                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Available-for-sale securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses are not included in earnings but are reported as a net amount (less expected tax) in a separate component of capital until realized. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
|   | —                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        | Trading securities are carried at fair value on the consolidated balance sheets. Unrealized holding gains and losses for trading securities are included in earnings. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | On December 8, 2008, the Federal Home Loan Bank of Boston announced a moratorium on the repurchase of excess stock held by its members. The moratorium will remain in effect indefinitely.                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | LOANS HELD-FOR-SALE:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Loans held-for-sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses are provided for in a valuation allowance by charges to operations. Interest income on mortgages held-for-sale is accrued currentlyand classified as interest on loans.                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | LOANS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Loans receivable that management has the intent and ability to hold until maturity or payoff, are reported at their outstanding principal balances adjusted for amounts due to borrowers on unadvanced loans, any charge-offs, the allowance for loan losses and any deferred fees or costs on originated loans, or unamortized premiums or discountson purchased loans.                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Interest on loans is recognized on a simple interest basis.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   | Loan origination and commitment fees and certain direct origination costs are deferred, and the net amount amortized as an adjustment of the related loan’s yield. The Company is amortizing these amounts over the contractual life of the related loans.                                                                                                                                                                                                                                                                                                               |

----

|   | Residential mortgage loans, home equity loans and lines are generally placed on nonaccrual when reaching 90 days past due or in process of foreclosure. Secured consumer loans are written down to realizable value and unsecured consumer loans are charged-off when they are greater than 90 days past due. Commercial real estate loans and commercialbusiness loans which are 90 days or more past due are generally placed on nonaccrual status, unless secured by sufficient cash or other assets immediately convertible to cash. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against interest on loans. A loan can be returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a period of time, generally six months.                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Cash receipts of interest income on impaired loans are credited to principal to the extent necessary to eliminate doubt as to the collectibility of the net carrying amount of the loan. Some or all of the cash receipts of interest income on impaired loans is recognized as interest income if the remaining net carrying amount of the loan is deemedto be fully collectible. When recognition of interest income on an impaired loan on a cash basis is appropriate, the amount of income that is recognized is limited to that which would have been accrued on the net carrying amount of the loan at the contractual interest rate. Any cash interest payments received in excess of the limit and not applied to reduce the net carrying amount of the loan are recorded as recoveries of charge-offs until the charge-offs are fully recovered.                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | ALLOWANCE FOR LOAN LOSSES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of anyunderlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateralvalue, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and theamount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   | Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment disclosures.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |

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|   | PREMISES AND EQUIPMENT:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Premises and equipment are stated at cost, less accumulated depreciation and amortization. Cost and related allowances for depreciation and amortization of premises and equipment retired or otherwise disposed of are removed from the respective accounts with any gain or loss included in income or expense. Depreciation and amortization are calculatedprincipally on the straight-line method over the estimated useful lives of the assets. Estimated lives are 5 to 40 years for buildings and premises and 3 to 20 years for furniture, fixtures and equipment. Expenditures for replacements or major improvements are capitalized; expenditures for normal maintenance and repairs are charged to expense as incurred. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | OTHER REAL ESTATE OWNED AND IN-SUBSTANCE FORECLOSURES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Other real estate owned includes properties acquired through foreclosure and properties classified as in-substance foreclosures in accordance with Statement of Financial Accounting Standards (SFAS) No. 15, “Accounting by Debtors and Creditors for Troubled Debt Restructuring.” These properties are carried at the lower of cost orfair value less estimated costs to sell. Any write down from cost to fair value required at the time of foreclosure or classification as in-substance foreclosure is charged to the allowance for loan losses. Expenses incurred in connection with maintaining these assets, subsequent write downs and gains or losses recognized upon sale are included in other expense.   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | In accordance with SFAS No. 114, “Accounting by Creditors for Impairment of a Loan,” the Company classifies loans as in-substance repossessed or foreclosed if the Company receives physical possession of the debtor’s assets regardless of whether formal foreclosure proceedings take place.                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | FAIR VALUES OF FINANCIAL INSTRUMENTS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Statement of Financial Accounting Standards (SFAS) No. 107, “Disclosures about Fair Value of Financial Instruments,” requires that the Company disclose estimated fair values for its financial instruments. Fair value methods and assumptions used by the Company in estimating its fair value disclosures are as follows:                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Cash and cash equivalents: The carrying amounts reported in the balance sheet for cash and cash equivalents approximate those assets’ fair values.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Securities: Fair values for securities are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market pricesof comparable instruments.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Loans held-for-sale: Fair values for loans held-for-sale are estimated based on outstanding investor commitments, or in the absence of such commitments, are based on current investoryield requirements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Loans receivable: For variable-rate loans that reprice frequently and with no significant change in credit risk, fair values are based on carrying values. The fair values for otherloans are estimated by discounting the future cash flows, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality.                                                                                                                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Accrued interest receivable: The carrying amount of accrued interest receivable approximates its fair value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Deposit liabilities: The fair values disclosed for demand deposits, regular savings, NOW accounts, and money market accounts are equal to the amount payable on demand at the reportingdate (i.e., their carrying amounts). Fair values for certificates of deposit are estimated using a discounted cash flow calculation that applies interest rates currently being offered on certificates to a schedule of aggregated expected monthly maturities on time deposits.                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Mortgagors’ escrow accounts: The carrying value of escrow accounts approximates fair value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   | Federal Home Loan Bank Advances: Fair values for Federal Home Loan Bank advances are estimated using a discounted cash flow technique that applies interest rates currently beingoffered on advances to a schedule of aggregated expected monthly maturities on Federal Home Loan Bank advances.                                                                                                                                                                                                                                                                                                                                                                                                                                    |

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|   | Securities sold under agreements to repurchase: The carrying amounts reported on the consolidated balance sheets for securities sold under agreements to repurchase approximate theirfair values.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Off-balance sheet instruments: The fair value of commitments to originate loans is estimated using the fees currently charged to enter similar agreements, taking into account theremaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments and the unadvanced portion of loans, fair value also considers the difference between current levels of interest rates and the committed rates. The fair value of letters of credit is based on fees currently charged for similar agreements or on the estimated cost to terminate them or otherwise settle the obligation with the counterparties at the reporting date.                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | EARNINGS PER SHARE:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|   | Basic EPS is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance ofcommon stock that then shared in the earnings of the entity. The Company had no anti-dilutive shares at June 30, 2009 as the Company reported a net loss, and 269,747 anti-dilutive shares June 30, 2008. Anti-dilutive shares are stock options with weighted-average exercise prices in excess of the weighted-average market value for the same period. Unallocated common shares held by the Bank’s employee stock ownership plan are not included in the weighted-average number of common shares outstanding for purposesof calculating both basic and diluted EPS. |

|                                                             |   | Income(Numerator) |       |   | Shares(Denominator) |   |      | Per-ShareAmount |   |
|------------------------------------------------------------------|--------|-------------------|------------|--------|---------------------|--------|-----------|-----------------|--------|
| Year ended June 30, 2009:                                        |   |              |       |   |                |   |      |            |   |
| Basic EPS                                                        |   |              |       |   |                |   |      |            |   |
| Net loss and loss attributable to common stockholders            |   | $                 | (7,131,000 | )      |                |   | 6,279,399 |            |   | $ | (1.14 | ) |
| Effect of dilutive securities options and warrants               |   |              |       |   |                |   | N/A       |            |   |   |   |   |
| Diluted EPS                                                      |   |              |       |   |                |   |      |            |   |   |   |   |
| Loss attributable to common stockholders and assumed conversions |   | $                 | (7,131,000 | )      |                |   | 6,279,399 |            |   | $ | (1.14 | ) |
|                                                             |   |              |       |   |                |   |      |            |   |   |   |   |
| Year ended June 30, 2008:                                        |   |              |       |   |                |   |      |            |   |   |   |   |
| Basic EPS                                                        |   |              |       |   |                |   |      |            |   |   |   |   |
| Net income and income available to common stockholders           |   | $                 | 3,068,000  |   |                |   | 6,297,478 |            |   | $ | .49 |   |
| Effect of dilutive securities options and warrants               |   |              |       |   |                |   | 73,205    |            |   |   |   |   |
| Diluted EPS                                                      |   |              |       |   |                |   |      |            |   |   |   |   |
| Income available to common stockholders and assumed conversions  |   | $                 | 3,068,000  |   |                |   | 6,370,683 |            |   | $ | .48 |   |

|   | ADVERTISING:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The Company directly expenses costs associated with advertising as they are incurred.                                                                                                                                                                                                                                                                                                                                                                                                                                       |
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|   | INCOME TAXES:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|   | The Company recognizes income taxes under the asset and liability method. Under this method, deferred tax assets and liabilities are established for the temporary differences between the accounting basis and the tax basis of the Company’s assets and liabilities at enacted tax rates expected to be in effect when the amounts related tosuch temporary differences are realized or settled. The Company’s policy is to recognize interest and penalties assessed on tax positions in income tax expense. |

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|   | EMPLOYEE STOCK OWNERSHIP PLAN:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | The Company established an Employee Stock Ownership Plan (the ESOP) as part of its minority stock issuance on October 4, 2004. The ESOP is accounted for in accordance with Statement of Position (SOP) 93-6. Under SOP 93-6, unearned ESOP shares are not considered outstanding and are therefore not taken into account when computing earnings pershare. Unearned ESOP shares are presented as a reduction to stockholders’ equity and represent shares to be allocated to ESOP participants in future periods for services provided to the Company. As shares are committed to be released, compensation expense is recognized for the fair market value of the stock and stockholders’ equity is increased by a corresponding amount. The loan to the ESOP will be repaid principally from the Bank’s contributions to the ESOP and dividends payable on commonstock held by ESOP over a period of 20 years.                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | STOCK BASED COMPENSATION:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | As more fully described in Note 15, the Company has a stock based incentive plan authorizing various types of incentive awards that may be granted to directors, officers and employees. The Company accounts for the plan under SFAS No. 123(R) “Share-Based Payment.” In accordance with SFAS No. 123(R), the Company records share-basedcompensation expense related to outstanding stock option and restricted stock awards based upon the fair value at the date of grant over the vesting period of such awards on a straight-line basis. During the years ended June 30, 2009 and 2008, $165,000 and $413,000, respectively, in stock-based employee compensation was recognized.                                                                                                                                                                                                                                                                                                                                                              |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | RECENT ACCOUNTING PRONOUNCEMENTS:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | In June 2006, the Financial Accounting Standards Board (FASB) issued Interpretation No. 48, “Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109” (FIN 48). FIN 48 prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax positiontaken, or expected to be taken, in a tax return and provides guidance on derecognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2007. The Company’s adoption of FIN 48 did not have a material impact on its financial statements.                                                                                                                                                                                                                                                                                                                                        |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | In September 2006, the FASB ratified the consensus reached by the Emerging Issues Task Force (“EITF”) on Issue No. 06-4 “Accounting for Deferred Compensation and Postretirement Benefit Aspects of Endorsement Split-Dollar Life Insurance Arrangements,” (EITF Issue 06-4). EITF 06-4 requires companies with an endorsementsplit-dollar life insurance arrangement to recognize a liability for future postretirement benefits. The effective date is for fiscal years beginning after December 15, 2007, with earlier application permitted. The Company should recognize the effects of applying this issue through either (a) a change in accounting principle through a cumulative effect adjustment to retained earnings or (b) a change in accounting principle through retrospective application to all periods. The adoption of the new issue did nothave a material impact on the Company’s financial position, results of operations or cash flows. See  Note 15 - Benefit Plans for additional information. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
|   | In September 2006, the FASB issued SFAS No. 157, “Fair Value Measurements” (SFAS 157). SFAS No. 157 defines fair value, establishes a framework for measuring fair value under generally accepted accounting principles (GAAP) and expands disclosures about fair value measurements. The FASB’s FSP FAS 157-2, “Effective Dateof FASB Statement No. 157”, defers until July 1, 2009, the application of SFAS 157 to nonfinancial assets and nonfinancial liabilities not recognized or disclosed at least annually at fair value. This includes nonfinancial assets and nonfinancial liabilities initially measured at fair value in a business combination or other new basis event, but not measured at fair value in subsequent periods. The Company adopted this statement on July 1, 2008. See Note 11 - Fair Value Measurements for additional information.                                                                                                                                                                  |

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|   | In February 2007, the FASB issued SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities - Including an amendment of FASB Statement No. 115” (SFAS 159). SFAS 159 permits entities, at specified election dates, to choose to measure certain financial instruments at fair value that are not currently requiredto be measured at fair value. The fair value option is applied on an instrument-by-instrument basis, is irrevocable and can only be applied to an entire instrument and not to specified risks, specific cash flows, or portions of that instrument. Unrealized gains and losses on items for which the fair value option has been elected will be reported in earnings at each subsequent reporting date and upfront fees and costs related to those items will be recognized in earnings as incurred and not deferred. SFAS No.159 is effective in fiscal years beginning after November 15, 2007 and may not be applied retrospectively. The adoption of the new standard did not have a material impact on the Company’s financial position, results of operations or cash flows. See Note 11 - Fair Value Measurements for additional information. |
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|   | In December 2007, the FASB issued SFAS No. 160, “Noncontrolling Interests in Consolidated Financial Statements and Amendment of ARB No. 51 (“SFAS No. 160”). The new pronouncement requires all entities to report noncontrolling (minority) interests in subsidiaries as a component of stockholders’ equity. SFAS No. 160 willbe effective for fiscal years beginning after December 15, 2008. Early adoption is prohibited. Management does not anticipate that this statement will have a material impact on the Company’s financial condition and results of operations.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | In December 2007, the FASB issued SFAS No. 141 (Revised 2007), “Business Combinations” (SFAS 141(R)). SFAS 141(R) will significantly change the accounting for business combinations. Under SFAS 141(R), an acquiring entity will be required to recognize all the assets acquired and liabilities assumed in a transaction at the acquisition-datefair value with limited exceptions. It also amends the accounting treatment for certain specific items including acquisition costs and non controlling minority interests and includes a substantial number of new disclosure requirements. SFAS 141(R) applies prospectively to business combinations for which the acquisition date is on or after July 1, 2009. The Company does not expect the adoption of this statement to have a material impact on its financial condition and results of operations.                                                                                                                                                                                                                                                                                                                                            |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | In February 2008, the FASB issued FSP FAS 140-3, “Accounting for Transfers of Financial Assets and Repurchase Financing Transactions.” This FSP provides guidance on how the transferor and transferee should separately account for a transfer of a financial asset and a related repurchase financing if certain criteria are met. Thisguidance will be effective July 1, 2009. The adoption of this new FSP is not expected to have a material effect on the Company’s results of operations or financial position.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | In March 2008, the FASB issued SFAS No. 161, “Disclosures about Derivative Instruments and Hedging Activities-an amendment of FASB Statement No. 133” (SFAS 161). SFAS 161 changes the disclosure requirements for derivative instruments and hedging activities. Entities are required to provide enhanced disclosures about (a) how andwhy an entity uses derivative instruments, (b) how derivative instruments and related hedged items are accounted for under Statement 133 and its related interpretations, and (c) how derivative instruments and related hedged items affect an entity’s financial position, financial performance, and cash flows. The guidance in SFAS 161 is effective for financial statements issued for fiscal years and interim periods beginning after November 15, 2008, with early application encouraged. This statement encourages,but does not require, comparative disclosures for earlier periods at initial adoption. The Company does not expect the adoption of this statement to have a material impact on its financial condition and results of operations.                                                                                             |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | In April 2008, the FASB issued FSP FAS 142-3, “Determination of the Useful Life of Intangible Assets.” This FSP provides guidance as to factors considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset under SFAS 142, “Goodwill and Other Intangible Assets.”This guidance will be effective July 1, 2009. The adoption is not expected to have a material effect on the Company’s results of operations or financial position.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | In May 2008, the FASB issued SFAS No. 162, “The Hierarchy of Generally Accepted Accounting Principles.” This standard formalizes minor changes in prioritizing accounting principles used in the preparation of financial statements that are presented in conformity with GAAP. This standard became effective November 15, 2008.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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|   | In April 2009, the FASB issued FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly” (FSP FAS 157-4). FSP FAS 157-4 provides additional guidance for estimating fair value measurements inaccordance with FASB Statement No. 157, “Fair Value Measurements,” when the volume and level of activity for the asset or liability have significantly decreased. FSP FAS 157-4 is effective for interim and annual reporting periods ending after June 15, 2009 with early adoption permitted for periods ending after March 15, 2009. The Company’s adoption of this FSP did not have a material effect on its financial condition and results of operations.                                                                                                                                                                                                                                                           |
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|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | In April 2009, the FASB issued FASB Staff Position 107-1 and Accounting Principles Board Opinion 28-1, “Interim Disclosures About Fair Value of Financial Instruments” (FSP FAS 107-1 and APB 28-1). FSP FAS 107-1 amends FASB Statement No. 107, “Disclosures About Fair Value of Financial Instruments,” to require entitiesto disclose the methods and significant assumptions used to estimate the fair value of financial instruments in both interim and annual financial statements. APB 28-1 amends APB Opinion No. 28, “Interim Financial Reporting” to require those disclosures in summarized financial information at interim reporting periods. FSP FAS 107-1 and APB 28-1 are effective for interim and annual periods ending after June 15, 2009 with earlyadoption permitted for periods ending after March 15, 2009. An entity may early adopt this FSP only if it also elects to early adopt FSP FAS 157-4. The Company’s adoption of this FSP did not have a material effect on its financial condition and results of operations. |
|   |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
|   | In April 2009, the FASB issued FASB Staff Position 115-2 and 124-2, “Recognition and Presentation of Other-Than-Temporary Impairments” (FSP FAS 115-2 and FAS 124-2). FSP FAS 115-2 and FAS 124-2 amends the other-than-temporary impairment (OTTI) guidance for debt securities to make the guidance more operational and to improve thepresentation and disclosure of OTTI on debt and equity securities in the financial statements. This FSP does not amend existing recognition and measurement guidance related to OTTI of equity securities. FSP FAS 115-2 and FAS 124-2 are effective for interim and annual reporting periods after June 15, 2009 with early adoption permitted for periods ending after March 15, 2009. The Company adopted this FSP effective April 1, 2009, resulting in a reduction in OTTI charges recorded in earnings of $4,821,000, pre-tax,during the year ended June 30, 2009. See Note 3 - Investment Securities for expanded disclosures related to this FSP.                                                                                  |

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|                                    |   |           |    |   |                 |   |    |                  |   |   |      |   |
|-----------------------------------------|--------|----------------|---------|--------|----------------------|--------|---------|-----------------------|--------|--------|-----------|--------|
|                                    |   | AmortizedCost  |    |   | GrossUnrealizedGains |   |    | GrossUnrealizedLosses |   |   | FairValue |   |
|                                    |   | (In Thousands) |    |
| Available-for-sale:                     |   |           |    |   |                 |   |    |                  |   |   |      |   |
| June 30, 2009:                          |   |           |    |   |                 |   |    |                  |   |   |      |   |
| Debt securities:                        |   |           |    |   |                 |   |    |                  |   |   |      |   |
| U.S. government and agency obligations: |   |           |    |   |                 |   |    |                  |   |   |      |   |
| From one through five years             |   | $              | 3,787   |   |                 | $      | 159     |                  |   | $      | —   |   |   | $ | 3,946 |   |
| From five through ten years             |   |           | 1,005   |   |                 |   | 21      |                  |   |   | —   |   |   |   | 1,026 |   |
| After ten years                         |   |           | 14,501  |   |                 |   | 210     |                  |   |   | (16       | )      |   |   | 14,695 |   |
|                                    |   |           | 19,293  |   |                 |   | 390     |                  |   |   | (16       | )      |   |   | 19,667 |   |
|                                    |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Corporate bonds and other obligations:  |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Due within one year                     |   |           | 1,994   |   |                 |   | 6       |                  |   |   | (49       | )      |   |   | 1,951 |   |
| From one through five years             |   |           | 2,741   |   |                 |   | 39      |                  |   |   | (4        | )      |   |   | 2,776 |   |
| After ten years                         |   |           | 6,995   |   |                 |   | 16      |                  |   |   | (2,475    | )      |   |   | 4,536 |   |
|                                    |   |           | 11,730  |   |                 |   | 61      |                  |   |   | (2,528    | )      |   |   | 9,263 |   |
|                                    |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Mortgage-backed securities              |   |           | 126,811 |   |                 |   | 3,568   |                  |   |   | (6,783    | )      |   |   | 123,596 |   |
|                                    |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Equity securities:                      |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Auction rate preferred                  |   |           | 15,047  |   |                 |   | 88      |                  |   |   | (2,773    | )      |   |   | 12,362 |   |
| Total available-for-sale securities     |   | $              | 172,881 |   |                 | $      | 4,107   |                  |   | $      | (12,100   | )      |   | $ | 164,888 |   |
|                                    |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| June 30, 2008:                          |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Debt securities:                        |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| U.S. government and agency obligations: |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| From one through five years             |   | $              | 3,079   |   |                 | $      | 16      |                  |   | $      | —   |   |   | $ | 3,095 |   |
| From five through ten years             |   |           | 2,232   |   |                 |   | 17      |                  |   |   | (21       | )      |   |   | 2,228 |   |
| After ten years                         |   |           | 13,987  |   |                 |   | 174     |                  |   |   | (12       | )      |   |   | 14,149 |   |
|                                    |   |           | 19,298  |   |                 |   | 207     |                  |   |   | (33       | )      |   |   | 19,472 |   |
|                                    |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| State agency and municipal obligations: |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| After ten years                         |   |           | 4,448   |   |                 |   | 99      |                  |   |   | —   |   |   |   | 4,547 |   |
|                                    |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Corporate bonds and other obligations:  |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Due within one year                     |   |           | 2,971   |   |                 |   | 7       |                  |   |   | (1        | )      |   |   | 2,977 |   |
| From one through five years             |   |           | 8,045   |   |                 |   | 10      |                  |   |   | (476      | )      |   |   | 7,579 |   |
| After ten years                         |   |           | 8,042   |   |                 |   | 47      |                  |   |   | (1,431    | )      |   |   | 6,658 |   |
|                                    |   |           | 19,058  |   |                 |   | 64      |                  |   |   | (1,908    | )      |   |   | 17,214 |   |
|                                    |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Mortgage-backed securities              |   |           | 156,063 |   |                 |   | 556     |                  |   |   | (4,769    | )      |   |   | 151,850 |   |
|                                    |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Equity securities:                      |   |           |    |   |                 |   |    |                  |   |   |      |   |   |   |   |   |
| Auction rate preferred                  |   |           | 19,000  |   |                 |   | — |                  |   |   | —   |   |   |   | 19,000 |   |
| Total available-for-sale securities     |   | $              | 217,867 |   |                 | $      | 926     |                  |   | $      | (6,710    | )      |   | $ | 212,083 |   |

----

|                                    |   | AmortizedCost  |   |   | GrossUnrealizedGains |   |    | GrossUnrealizedLosses |   |   | FairValue |   |
|-----------------------------------------|--------|----------------|--------|--------|----------------------|--------|---------|-----------------------|--------|--------|-----------|--------|
|                                    |   | (In Thousands) |   |
| Held-to-maturity:                       |   |           |   |   |                 |   |    |                  |   |   |      |   |
| June 30, 2009:                          |   |           |   |   |                 |   |    |                  |   |   |      |   |
| Debt securities:                        |   |           |   |   |                 |   |    |                  |   |   |      |   |
| U.S. government and agency obligations: |   |           |   |   |                 |   |    |                  |   |   |      |   |
| After ten years                         |   | $              | 2,000  |   |                 | $      | — |                  |   | $      | (55       | )      |   | $ | 1,945 |   |
| Total held-to-maturity securities       |   | $              | 2,000  |   |                 | $      | — |                  |   | $      | (55       | )      |   | $ | 1,945 |   |

|                       |   |   |   |           |   |      |   |   |   |
|----------------------------|--------|--------|--------|----------------|--------|-----------|--------|--------|--------|
|                       |   |   |   | AmortizedCost  |   | FairValue |   |
|                       | Issuer |   |   | (In Thousands) |   |
| Pitney Bowes International |   | $      | 5,000  |           | $      | 4,895     |   |

|                                  |   |                |    |   |                |   |    |      |   |   |             |   |   |      |    |   |             |   |
|---------------------------------------|--------|---------------------|---------|--------|---------------------|--------|---------|-----------|--------|--------|------------------|--------|--------|-----------|---------|--------|------------------|--------|
|                                  |   | Less than 12 Months |    |   | 12 Months or Longer |   |    | Total     |   |
|                                  |   | FairValue           |    |   | UnrealizedLosses    |   |    | FairValue |   |   | UnrealizedLosses |   |   | FairValue |    |   | UnrealizedLosses |   |
|                                  |   | (In Thousands)      |    |
| June 30, 2009:                        |   |                |    |   |                |   |    |      |   |   |             |   |   |      |    |   |             |   |
| U.S. government agencies              |   | $                   | 984     |   |                | $      | 16      |      |   | $      | —          |   |   | $         | — |   |             | $      | 984 |   |   | $ | 16 |   |
| Corporate bonds and other obligations |   |                | — |   |                |   | — |      |   |   | 5,493            |   |   |      | 2,528   |   |             |   | 5,493 |   |   |   | 2,528 |   |
| Mortgage-backed securities            |   |                | 5,268   |   |                |   | 1,053   |      |   |   | 16,123           |   |   |      | 5,730   |   |             |   | 21,391 |   |   |   | 6,783 |   |
| Equity securities                     |   |                | 12,227  |   |                |   | 2,773   |      |   |   | —          |   |   |      | — |   |             |   | 12,227 |   |   |   | 2,773 |   |
| Total temporarily impaired securities |   | $                   | 18,479  |   |                | $      | 3,842   |      |   | $      | 21,616           |   |   | $         | 8,258   |   |             | $      | 40,095 |   |   | $ | 12,100 |   |
|                                  |   |                |    |   |                |   |    |      |   |   |             |   |   |      |    |   |             |   |   |   |   |   |   |   |
| June 30, 2008:                        |   |                |    |   |                |   |    |      |   |   |             |   |   |      |    |   |             |   |   |   |   |   |   |   |
| U.S. government agencies              |   | $                   | 1,963   |   |                | $      | 33      |      |   | $      | —          |   |   | $         | — |   |             | $      | 1,963 |   |   | $ | 33 |   |
| Corporate bonds and other obligations |   |                | 6,688   |   |                |   | 353     |      |   |   | 6,447            |   |   |      | 1,555   |   |             |   | 13,135 |   |   |   | 1,908 |   |
| Mortgage-backed securities            |   |                | 94,110  |   |                |   | 4,722   |      |   |   | 2,592            |   |   |      | 47      |   |             |   | 96,702 |   |   |   | 4,769 |   |
| Total temporarily impaired securities |   | $                   | 102,761 |   |                | $      | 5,108   |      |   | $      | 9,039            |   |   | $         | 1,602   |   |             | $      | 111,800 |   |   | $ | 6,710 |   |

----

|                                                                                    |   |             |    |   |                |   |    |                                |   |   |   |   |   |   |   |   |
|-----------------------------------------------------------------------------------------|--------|------------------|---------|--------|---------------------|--------|---------|-------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                                                    |   | EquitySecurities |    |   | CorporateSecurities |   |    | Non-AgencyMortgage-BackedSecurities |   |   | Total  |   |
|                                                                                    |   | (In Thousands)   |    |
| Total other-than-temporary impairment losses                                            |   | $                | 3,953   |   |                | $      | 2,225   |                                |   | $      | 14,614 |   |   | $      | 20,792 |   |
| Less: unrealized other-than-temporary losses recognized in other comprehensive loss (1) |   |             | — |   |                |   | — |                                |   |   | 4,821  |   |   |   | 4,821  |   |
|                                                                                    |   |             |    |   |                |   |    |                                |   |   |   |   |   |   |   |   |
| Net impairment losses recognized in earnings (2)                                        |   | $                | 3,953   |   |                | $      | 2,225   |                                |   | $      | 9,793  |   |   | $      | 15,971 |   |

| (1) | Represents the noncredit component of the other-than-temporary impairment on the securities. |
|-----|----------------------------------------------------------------------------------------------|
| (2) | Represents the credit component of the other-than-temporary impairment on securities.        |

|                                                                                                                         |           |   |    |   |
|------------------------------------------------------------------------------------------------------------------------------|----------------|--------|---------|--------|
|                                                                                                                         |           | Total  |    |
|                                                                                                                         | (In Thousands) |
| Balance, July 1, 2008                                                                                                        |           | $      | — |   |
| Additions for the credit component on debt securities in which other-than-temporary impairment was not previously recognized |           |   | 9,793   |   |
| Balance, June 30, 2009                                                                                                       |           | $      | 9,793   |   |

----

|             |   |            |   |    |   |   |   |   |   |
|------------------|--------|-----------------|--------|---------|--------|--------|--------|--------|--------|
|             |   | WeightedAverage |   | Range   |
|             |   | Minimum         |   | Maximum |
| Prepayment rates |   |            | 13.4   | %       |   |   | 0.3    | %      |   |   | 22.0 | % |
| Default rates    |   |            | 10.5   | %       |   |   | 2.4    | %      |   |   | 23.8 | % |
| Loss severity    |   |            | 37.0   | %       |   |   | 10.0   | %      |   |   | 51.5 | % |

|                             |   |                   |    |   |   |   |
|----------------------------------|--------|------------------------|---------|--------|--------|--------|
|                             |   | 2009                   |    |   | 2008   |   |
|                             |   | (Dollars In Thousands) |    |
| Residential mortgages            |   | $                      | 200,680 |   |   | $      | 181,978 |   |
| Commercial mortgages             |   |                   | 56,500  |   |   |   | 55,406 |   |
| Construction mortgages           |   |                   | 1,887   |   |   |   | 3,223 |   |
| Commercial                       |   |                   | 8,958   |   |   |   | 8,687 |   |
| Installment                      |   |                   | 812     |   |   |   | 944 |   |
| Collateral                       |   |                   | 130     |   |   |   | 298 |   |
| Other                            |   |                   | 155     |   |   |   | 152 |   |
|                             |   |                   | 269,122 |   |   |   | 250,688 |   |
| Unadvanced construction loans    |   |                   | (2,929  | )      |   |   | (6,522 | ) |
|                             |   |                   | 266,193 |   |   |   | 244,166 |   |
| Allowance for loan losses        |   |                   | (2,200  | )      |   |   | (1,758 | ) |
| Deferred costs, net              |   |                   | 324     |   |   |   | 319 |   |
| Deferred fees on purchased loans |   |                   | — |   |   |   | 1 |   |
| Net loans                        |   | $                      | 264,317 |   |   | $      | 242,728 |   |
| Weighted average yield           |   |                   | 5.72    | %      |   |   | 6.10 | % |

----

|                           |   |           |    |   |   |   |
|--------------------------------|--------|----------------|---------|--------|--------|--------|
|                           |   | 2009           |    |   | 2008   |   |
|                           |   | (In Thousands) |    |
| Fixed rate:                    |   |           |    |   |   |   |
| Term to maturity               |   |           |    |   |   |   |
| One month through one year     |   | $              | 5,194   |   |   | $      | 5,853 |   |
| One year through three years   |   |           | 10,545  |   |   |   | 10,740 |   |
| Three years through five years |   |           | 15,350  |   |   |   | 17,475 |   |
| Five years through ten years   |   |           | 28,145  |   |   |   | 26,361 |   |
| Over ten years                 |   |           | 96,336  |   |   |   | 79,104 |   |
|                           |   |           | 155,570 |   |   |   | 139,533 |   |
| Adjustable rate:               |   |           |    |   |   |   |   |   |
| Rate adjustment                |   |           |    |   |   |   |   |   |
| One month through one year     |   |           | 57,444  |   |   |   | 45,582 |   |
| One year through three years   |   |           | 24,315  |   |   |   | 25,062 |   |
| Three years through five years |   |           | 20,172  |   |   |   | 21,758 |   |
| Over five years                |   |           | 8,692   |   |   |   | 12,231 |   |
|                           |   |           | 110,623 |   |   |   | 104,633 |   |
| Total loans                    |   | $              | 266,193 |   |   | $      | 244,166 |   |

|                                       |   |           |   |   |   |   |
|--------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                       |   | 2009           |   |   | 2008   |   |
|                                       |   | (In Thousands) |   |
| Beginning balance                          |   | $              | 1,758  |   |   | $      | 1,780 |   |
| Recoveries of loans previously charged off |   |           | 46     |   |   |   | 51 |   |
| Charge offs                                |   |           | (571   | )      |   |   | (124 | ) |
| Provision for loan losses                  |   |           | 967    |   |   |   | 51 |   |
| Balance at end of period                   |   | $              | 2,200  |   |   | $      | 1,758 |   |

----

|                                             |   |           |    |   |   |   |
|--------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                             |   | 2009           |    |   | 2008   |   |
|                                             |   | (In Thousands) |    |
| Nonperforming loans                              |   | $              | 6,449   |   |   | $      | 1,452 |   |
|                                             |   |           |    |   |   |   |   |   |
| Total nonaccrual loans                           |   | $              | 6,449   |   |   | $      | 982 |   |
|                                             |   |           |    |   |   |   |   |   |
| Accruing loans which are 90 days or more overdue |   | $              | — |   |   | $      | 470 |   |

|                                                                                                                  |   |                               |   |   |                             |   |    |                               |   |   |                             |   |
|-----------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|--------|--------|----------------------------------|--------|---------|------------------------------------|--------|--------|----------------------------------|--------|
|                                                                                                                  |   | 2009                               |   |   | 2008                             |   |
|                                                                                                                  |   | RecordedInvestmentIn ImpairedLoans |   |   | RelatedAllowanceFor CreditLosses |   |    | RecordedInvestmentIn ImpairedLoans |   |   | RelatedAllowanceFor CreditLosses |   |
|                                                                                                                  |   | (In Thousands)                     |   |
| Loans for which there is a related allowance for credit losses                                                        |   | $                                  | 3,556  |   |                             | $      | 289     |                               |   | $      | —                          |   |   | $ | — |   |
|                                                                                                                  |   |                               |   |   |                             |   |    |                               |   |   |                             |   |   |   |   |   |
| Loans for which there is no related allowance for credit losses                                                       |   |                               | 1,874  |   |                             |   | — |                               |   |   | —                          |   |   |   | — |   |
|                                                                                                                  |   |                               |   |   |                             |   |    |                               |   |   |                             |   |   |   |   |   |
| Totals                                                                                                                |   | $                                  | 5,430  |   |                             | $      | 289     |                               |   | $      | —                          |   |   | $ | — |   |
|                                                                                                                  |   |                               |   |   |                             |   |    |                               |   |   |                             |   |   |   |   |   |
| Average recorded investment in impaired loans during the year ended June 30                                           |   | $                                  | 2,410  |   |                             |   |    |                               |   | $      | —                          |   |   |   |   |   |
|                                                                                                                  |   |                               |   |   |                             |   |    |                               |   |   |                             |   |   |   |   |   |
| Related amount of interest income recognized during the time, in the year ended June 30, that the loans were impaired |   |                               |   |   |                             |   |    |                               |   |   |                             |   |   |   |   |   |
|                                                                                                                  |   |                               |   |   |                             |   |    |                               |   |   |                             |   |   |   |   |   |
| Total recognized                                                                                                      |   | $                                  | 5      |   |                             |   |    |                               |   | $      | —                          |   |   |   |   |   |
| Amount recognized using a cash-basis method of accounting                                                             |   | $                                  | 0      |   |                             |   |    |                               |   | $      | —                          |   |   |   |   |   |
|                                                                                                                  |   |                               |   |   |                             |   |    |                               |   |   |                             |   |   |   |   |   |

----

|                                      |   |           |   |   |   |   |
|-------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                      |   | 2009           |   |   | 2008   |   |
|                                      |   | (In Thousands) |   |
| Land                                      |   | $              | 470    |   |   | $      | 301 |   |
| Buildings                                 |   |           | 5,953  |   |   |   | 4,455 |   |
| Furniture and equipment                   |   |           | 2,530  |   |   |   | 2,358 |   |
|                                      |   |           | 8,953  |   |   |   | 7,114 |   |
| Accumulated depreciation and amortization |   |           | (3,794 | )      |   |   | (3,408 | ) |
|                                      |   | $              | 5,159  |   |   | $      | 3,706 |   |

|                                  |   |           |   |   |   |   |
|---------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                  |   | June 30,       |   |
|                                  |   | 2009           |   |   | 2008   |   |
|                                  |   | (In Thousands) |   |
| Balances not subject to amortization: |   |           |   |   |   |   |
| Goodwill                              |   | $              | 6,912  |   |   | $      | 6,912 |   |
| Balances subject to amortization:     |   |           |   |   |   |   |   |   |
| Core Deposit Intangible               |   |           | 651    |   |   |   | 857 |   |
| Total intangible assets               |   | $              | 7,563  |   |   | $      | 7,769 |   |

|                 |           |   |   |   |   |
|----------------------|----------------|--------|--------|--------|--------|
|                 | (In Thousands) |   |
| Years Ended June 30, |           |   |   |   |   |
| 2010                 |           | $      | 178    |   |   |
| 2011                 |           |   | 149    |   |   |
| 2012                 |           |   | 121    |   |   |
| 2013                 |           |   | 93     |   |   |
| 2014                 |           |   | 65     |   |   |
| Thereafter           |           |   | 45     |   |   |
| Total                |           | $      | 651    |   |   |

----

|                              |   |                   |    |   |                |   |    |   |   |   |                |   |
|-----------------------------------|--------|------------------------|---------|--------|---------------------|--------|---------|--------|--------|--------|---------------------|--------|
|                              |   | 2009                   |    |   | 2008                |   |
|                              |   | Amount                 |    |   | WeightedAverageRate |   |    | Amount |   |   | WeightedAverageRate |   |
|                              |   | (Dollars In Thousands) |    |
| Demand deposits                   |   | $                      | 35,246  |   |                |   | — | %      |   | $      | 37,195              |   |   |   | — | % |
| NOW accounts                      |   |                   | 57,612  |   |                |   | 1.90    |   |   |   | 36,253              |   |   |   | 2.37 |   |
| Regular savings                   |   |                   | 47,285  |   |                |   | 0.46    |   |   |   | 46,630              |   |   |   | 0.60 |   |
| Money market accounts             |   |                   | 11,504  |   |                |   | 1.08    |   |   |   | 13,426              |   |   |   | 1.70 |   |
| Clubs                             |   |                   | 322     |   |                |   | 3.79    |   |   |   | 319                 |   |   |   | 4.17 |   |
|                              |   |                   | 151,969 |   |                |   | 0.96    |   |   |   | 133,823             |   |   |   | 1.02 |   |
| Certificate accounts maturing in: |   |                   |    |   |                |   |    |   |   |   |                |   |   |   |   |   |
| Less than one year                |   |                   | 104,428 |   |                |   | 2.91    |   |   |   | 87,584              |   |   |   | 3.70 |   |
| One year to two years             |   |                   | 16,884  |   |                |   | 3.25    |   |   |   | 35,739              |   |   |   | 3.70 |   |
| Two years to three years          |   |                   | 16,662  |   |                |   | 4.70    |   |   |   | 6,990               |   |   |   | 4.15 |   |
| Three years to five years         |   |                   | 18,156  |   |                |   | 4.06    |   |   |   | 19,588              |   |   |   | 4.84 |   |
|                              |   |                   | 156,130 |   |                |   | 3.27    |   |   |   | 149,901             |   |   |   | 3.87 |   |
| Total deposits                    |   | $                      | 308,099 |   |                |   | 2.13    | %      |   | $      | 283,724             |   |   |   | 2.53 | % |

|                        |   |                   |    |   |                |   |    |       |   |   |                |   |
|-----------------------------|--------|------------------------|---------|--------|---------------------|--------|---------|------------|--------|--------|---------------------|--------|
|                        |   | 2009                   |    |   | 2008                |   |
|                        |   | Amount Due             |    |   | WeightedAverageRate |   |    | Amount Due |   |   | WeightedAverageRate |   |
|                        |   | (Dollars In Thousands) |    |
|                        |   |                   |    |   |                |   |    |       |   |   |                |   |
| Short-term borrowing        |   |                   |    |   |                |   |    |       |   |   |                |   |
| FHLB advances               |   | $                      | — |   |                |   | — | %          |   | $      | 13,000              |   |   |   | 2.39 | % |
| Repurchase agreements       |   |                   | 4,471   |   |                |   | 2.30    |       |   |   | 6,406               |   |   |   | 2.17 |   |
| Total short-term borrowings |   |                   | 4,471   |   |                |   | 2.30    |       |   |   | 19,406              |   |   |   | 2.32 |   |
|                        |   |                   |    |   |                |   |    |       |   |   |                |   |   |   |   |   |
| Long-term FHLB advances     |   |                   |    |   |                |   |    |       |   |   |                |   |   |   |   |   |
| Year of maturity:           |   |                   |    |   |                |   |    |       |   |   |                |   |   |   |   |   |
| 2009                        |   |                   | — |   |                |   | — |       |   |   | 31,704              |   |   |   | 3.96 |   |
| 2010                        |   |                   | 19,000  |   |                |   | 4.72    |       |   |   | 24,011              |   |   |   | 4.78 |   |
| 2011                        |   |                   | 29,500  |   |                |   | 3.51    |       |   |   | 27,500              |   |   |   | 3.51 |   |
| 2012                        |   |                   | 40,000  |   |                |   | 4.46    |       |   |   | 31,000              |   |   |   | 4.70 |   |
| 2013                        |   |                   | 5,000   |   |                |   | 3.23    |       |   |   | 5,000               |   |   |   | 3.24 |   |
| 2014                        |   |                   | 9,000   |   |                |   | 3.15    |       |   |   | —             |   |   |   | — |   |
| 2017                        |   |                   | 10,000  |   |                |   | 4.15    |       |   |   | 10,000              |   |   |   | 4.16 |   |
| 2018                        |   |                   | 8,000   |   |                |   | 3.91    |       |   |   | 8,000               |   |   |   | 3.92 |   |
| Total long-term borrowings  |   |                   | 120,500 |   |                |   | 4.06    |       |   |   | 137,215             |   |   |   | 4.17 |   |
| Total borrowed funds        |   | $                      | 124,971 |   |                |   | 3.99    | %          |   | $      | 156,621             |   |   |   | 3.94 | % |

----

|                               |   |           |    |   |   |   |
|------------------------------------|--------|----------------|---------|--------|--------|--------|
|                               |   | 2009           |    |   | 2008   |   |
|                               |   | (In Thousands) |    |
| Current:                           |   |           |    |   |   |   |
| Federal                            |   | $              | (184    | )      |   | $      | 693 |   |
| State                              |   |           | 1       |   |   |   | 1 |   |
|                               |   |           | (183    | )      |   |   | 694 |   |
| Deferred:                          |   |           |    |   |   |   |   |   |
| Federal                            |   |           | (4,415  | )      |   |   | 406 |   |
| State                              |   |           | — |   |   |   | 5 |   |
| Change in valuation allowance      |   |           | (12     | )      |   |   | — |   |
|                               |   |           | (4,427  | )      |   |   | 411 |   |
| Total income tax (benefit) expense |   | $              | (4,610  | )      |   | $      | 1,105 |   |

|                                       |   |           |   |   |   |   |
|--------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                       |   | 2009           |   |   | 2008   |   |
|                                       |   | (In Thousands) |   |
| Federal income tax at statutory rate       |   | $              | (3,992 | )      |   | $      | 1,419 |   |
| Increase (decrease) in tax resulting from: |   |           |   |   |   |   |   |   |
| State taxes, net of federal tax benefit    |   |           | 1      |   |   |   | 4 |   |
| Qualifying option (benefit) expense        |   |           | (7     | )      |   |   | 70 |   |
| Dividends received deduction               |   |           | (174   | )      |   |   | (193 | ) |
| Bank-owned life insurance                  |   |           | (155   | )      |   |   | (88 | ) |
| Tax-exempt municipal income, net           |   |           | (52    | )      |   |   | (112 | ) |
| Change in valuation allowance              |   |           | (12    | )      |   |   | — |   |
| Other, net                                 |   |           | (219   | )      |   |   | 5 |   |
| Income tax (benefit) expense               |   | $              | (4,610 | )      |   | $      | 1,105 |   |
| Effective tax rates                        |   |           | (39.3  | )%     |   |   | 26.5 | % |

----

|                                                         |   |           |    |   |   |   |
|--------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                                         |   | 2009           |    |   | 2008   |   |
|                                                         |   | (In Thousands) |    |
| Deferred tax assets:                                         |   |           |    |   |   |   |
| Net unrealized holding loss on available-for-sale securities |   | $              | 2,716   |   |   | $      | 1,968 |   |
| Allowance for loan losses                                    |   |           | 748     |   |   |   | 598 |   |
| Write down of securities                                     |   |           | 4,565   |   |   |   | — |   |
| Contribution carryforward                                    |   |           | 102     |   |   |   | 120 |   |
| Deferred compensation                                        |   |           | 177     |   |   |   | 203 |   |
| Stock based compensation                                     |   |           | 81      |   |   |   | 313 |   |
| Post retirement benefits - EITF 06-4                         |   |           | 33      |   |   |   | — |   |
| Federal AMT carryover                                        |   |           | 81      |   |   |   | — |   |
| Loans held-for-sale                                          |   |           | — |   |   |   | 2 |   |
| Interest receivable on nonaccrual loans                      |   |           | 42      |   |   |   | 65 |   |
|                                                         |   |           | 8,545   |   |   |   | 3,269 |   |
| Valuation allowance                                          |   |           | — |   |   |   | (12 | ) |
| Gross deferred tax asset                                     |   |           | 8,545   |   |   |   | 3,257 |   |
|                                                         |   |           |    |   |   |   |   |   |
| Deferred tax liabilities:                                    |   |           |    |   |   |   |   |   |
| Depreciation and amortization                                |   |           | (372    | )      |   |   | (294 | ) |
| Deferred loan fees                                           |   |           | (110    | )      |   |   | (108 | ) |
| Gross deferred tax liability                                 |   |           | (482    | )      |   |   | (402 | ) |
| Net deferred tax asset                                       |   | $              | 8,063   |   |   | $      | 2,855 |   |

|       |           |   |   |   |   |
|------------|----------------|--------|--------|--------|--------|
|       | (In Thousands) |   |
| 2010       |           | $      | 167    |   |   |
| 2011       |           |   | 155    |   |   |
| 2012       |           |   | 109    |   |   |
| 2013       |           |   | 97     |   |   |
| 2014       |           |   | 97     |   |   |
| Thereafter |           |   | 45     |   |   |
| Total      |           | $      | 670    |   |   |

----

----

|                                                                            |   |                                             |    |   |                                                      |   |    |                                     |   |   |                                 |   |
|---------------------------------------------------------------------------------|--------|--------------------------------------------------|---------|--------|-----------------------------------------------------------|--------|---------|------------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                            |   | Fair Value Measurements at Reporting Date Using: |    |
| (In Thousands)                                                                  |   | June 30, 2009                                    |    |   | Quoted Prices inActive Markets forIdentical AssetsLevel 1 |   |    | SignificantOther ObservableInputsLevel 2 |   |   | SignificantUnobservableInputsLevel 3 |   |
| Securities available-for-sale:                                                  |   |                                             |    |   |                                                      |   |    |                                     |   |   |                                 |   |
| U.S. Government agency securities                                               |   | $                                                | 19,667  |   |                                                      | $      | — |                                     |   | $      | 19,667                               |   |   | $ | — |   |
| Corporate securities                                                            |   |                                             | 9,263   |   |                                                      |   | — |                                     |   |   | 9,263                                |   |   |   | — |   |
| Mortgage-backed securities insured or guaranteed by U.S. Government enterprises |   |                                             | 103,330 |   |                                                      |   | — |                                     |   |   | 103,330                              |   |   |   | — |   |
| Non-agency mortgage-backed securities                                           |   |                                             | 20,266  |   |                                                      |   | — |                                     |   |   | 20,266                               |   |   |   | — |   |
| Equity securities                                                               |   |                                             | 12,362  |   |                                                      |   | — |                                     |   |   | 4,896                                |   |   |   | 7,466 |   |
| Impaired loans                                                                  |   |                                             | 3,267   |   |                                                      |   | — |                                     |   |   | 3,267                                |   |   |   | — |   |
| Totals                                                                          |   | $                                                | 168,155 |   |                                                      | $      | — |                                     |   | $      | 160,689                              |   |   | $ | 7,466 |   |

|                                                                                                                                                                                 |   | Fair Value MeasurementsUsing Significant Unobservable InputsLevel 3 |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------|---------|
| (In Thousands)                                                                                                                                                                       |   | Available-for-SaleSecurities                                        |    |   | Total |   |
| Beginning balance July 1, 2008                                                                                                                                                       |   | $                                                                   | 19,000  |   |   | $ | 19,000 |   |
| Total gains or losses (realized/unrealized)                                                                                                                                          |   |                                                                |    |   |   |   |   |   |
| Included in earnings                                                                                                                                                                 |   |                                                                | (13,472 | ) |   |   | (13,472 | ) |
| Included in other comprehensive loss                                                                                                                                                 |   |                                                                | 14,080  |   |   |   | 14,080 |   |
| Principal payments on securities                                                                                                                                                     |   |                                                                | (1,114  | ) |   |   | (1,114 | ) |
| Accretion of securities, net                                                                                                                                                         |   |                                                                | 1       |   |   |   | 1 |   |
| Transfers out of Level 3                                                                                                                                                             |   |                                                                | (11,029 | ) |   |   | (11,029 | ) |
| Ending balance, June 30, 2009                                                                                                                                                        |   | $                                                                   | 7,466   |   |   | $ | 7,466 |   |
|                                                                                                                                                                                 |   |                                                                |    |   |   |   |   |   |
| The amount of total gains or losses for the period included in earnings attributable to the change in unrealized gains or losses relating to assets still held at the reporting date |   | $                                                                   | — |   |   | $ | — |   |

----

|                                           |   |           |    |   |      |   |    |           |   |   |      |   |
|------------------------------------------------|--------|----------------|---------|--------|-----------|--------|---------|----------------|--------|--------|-----------|--------|
|                                           |   | 2009           |    |   | 2008      |   |
|                                           |   | CarryingAmount |    |   | FairValue |   |    | CarryingAmount |   |   | FairValue |   |
|                                           |   | (In Thousands) |    |
|                                           |   |           |    |   |      |   |    |           |   |   |      |   |
| Financial assets:                              |   |           |    |   |      |   |    |           |   |   |      |   |
| Cash and cash equivalents                      |   | $              | 6,059   |   |      | $      | 6,059   |           |   | $      | 8,146     |   |   | $ | 8,146 |   |
| Available-for-sale securities                  |   |           | 164,888 |   |      |   | 164,888 |           |   |   | 212,083   |   |   |   | 212,083 |   |
| Held-to-maturity securities                    |   |           | 2,000   |   |      |   | 1,945   |           |   |   | —   |   |   |   | — |   |
| Federal Home Loan Bank stock                   |   |           | 8,056   |   |      |   | 8,056   |           |   |   | 7,943     |   |   |   | 7,943 |   |
| Loans held-for-sale                            |   |           | 1,200   |   |      |   | 1,214   |           |   |   | 675       |   |   |   | 675 |   |
| Loans, net                                     |   |           | 264,317 |   |      |   | 266,369 |           |   |   | 242,728   |   |   |   | 243,284 |   |
| Accrued interest receivable                    |   |           | 1,891   |   |      |   | 1,891   |           |   |   | 2,273     |   |   |   | 2,273 |   |
|                                           |   |           |    |   |      |   |    |           |   |   |      |   |   |   |   |   |
| Financial liabilities:                         |   |           |    |   |      |   |    |           |   |   |      |   |   |   |   |   |
| Deposits                                       |   |           | 308,099 |   |      |   | 311,070 |           |   |   | 283,724   |   |   |   | 284,995 |   |
| Mortgagors’ escrow accounts              |   |           | 1,564   |   |      |   | 1,564   |           |   |   | 1,423     |   |   |   | 1,423 |   |
| Federal Home Loan Bank advances                |   |           | 120,500 |   |      |   | 126,057 |           |   |   | 150,215   |   |   |   | 153,086 |   |
| Securities sold under agreements to repurchase |   |           | 4,471   |   |      |   | 4,471   |           |   |   | 6,406     |   |   |   | 6,406 |   |

----

|                           |   |           |   |   |   |   |
|--------------------------------|--------|----------------|--------|--------|--------|--------|
|                           |   | 2009           |   |   | 2008   |   |
|                           |   | (In Thousands) |   |
| Commitments to originate loans |   | $              | 4,687  |   |   | $      | 9,732 |   |
| Unadvanced portions of loans:  |   |           |   |   |   |   |   |   |
| Construction loans             |   |           | 2,929  |   |   |   | 6,522 |   |
| Lines of credit                |   |           | 16,859 |   |   |   | 18,522 |   |
| Letters of credit              |   |           | 898    |   |   |   | 2,050 |   |
|                           |   | $              | 25,373 |   |   | $      | 36,826 |   |

|                                         |   |                          |   |   |                         |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |
|----------------------------------------------|--------|-------------------------------|--------|--------|------------------------------|--------|--------|---------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                         |   | Actual                        |   |   | For CapitalAdequacy Purposes |   |   | To Be WellCapitalized UnderPrompt CorrectiveAction Provisions |   |
|                                         |   | Amount                        |   |   | Ratio                        |   |   | Amount                                                        |   |   | Ratio  |   |   | Amount |   |   | Ratio  |   |
|                                         |   | (Dollar amounts in thousands) |   |
| As of June 30, 2009:                         |   |                          |   |   |                         |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |
| Tangible Equity Capital (to Tangible Assets) |   | $                             | 31,376 |   |                         |   | 6.62   | %                                                             |   | $      | 7,105  |   |   |   | 1.50   | %      |   |   | N/A |   |   |   | N/A |   |
| Core Capital (to Adjusted Tangible Assets)   |   |                          | 31,376 |   |                         |   | 6.62   |                                                          |   |   | 18,947 |   |   |   | 4.00   |   |   | $      | 23,683 |   |   |   | 5.00 | % |
| Tier 1 Capital (to Risk-Weighted Assets)     |   |                          | 31,376 |   |                         |   | 10.20  |                                                          |   |   | 12,302 |   |   |   | 4.00   |   |   |   | 18,453 |   |   |   | 6.00 |   |
| Total Capital (to Risk-Weighted Assets)      |   |                          | 33,569 |   |                         |   | 10.92  |                                                          |   |   | 24,604 |   |   |   | 8.00   |   |   |   | 30,755 |   |   |   | 10.00 |   |

----

|                                         |   | Actual                        |   |   | For CapitalAdequacy Purposes |   |   | To Be WellCapitalized UnderPrompt CorrectiveAction Provisions |   |
|----------------------------------------------|--------|-------------------------------|--------|--------|------------------------------|--------|--------|---------------------------------------------------------------|--------|
|                                         |   | Amount                        |   |   | Ratio                        |   |   | Amount                                                        |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                         |   | (Dollar amounts in thousands) |   |
| As of June 30, 2008:                         |   |                          |   |   |                         |   |   |                                                          |   |   |   |   |   |   |   |   |   |   |
| Tangible Equity Capital (to Tangible Assets) |   | $                             | 40,932 |   |                         |   | 8.34   | %                                                             |   | $ | 7,361 |   |   |   | 1.50 | % |   |   | N/A |   |   |   | N/A |   |
| Core Capital (to Adjusted Tangible Assets)   |   |                          | 40,932 |   |                         |   | 8.34   |                                                          |   |   | 19,628 |   |   |   | 4.00 |   |   | $ | 24,535 |   |   |   | 5.00 | % |
| Tier 1 Capital (to Risk-Weighted Assets)     |   |                          | 40,932 |   |                         |   | 15.58  |                                                          |   |   | 10,512 |   |   |   | 4.00 |   |   |   | 15,767 |   |   |   | 6.00 |   |
| Total Capital (to Risk-Weighted Assets)      |   |                          | 42,680 |   |                         |   | 16.24  |                                                          |   |   | 21,023 |   |   |   | 8.00 |   |   |   | 26,279 |   |   |   | 10.00 |   |

|                                                   |   |           |   |   |   |   |
|--------------------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                                   |   | 2009           |   |   | 2008   |   |
|                                                   |   | (In Thousands) |   |
| Capital under generally accepted accounting principles |   | $              | 36,209 |   |   | $      | 44,903 |   |
| Intangible assets                                      |   |           | (7,150 | )      |   |   | (7,769 | ) |
| Disallowed deferred tax assets                         |   |           | (2,978 | )      |   |   | — |   |
| Unrealized losses on available-for-sale securities     |   |           | 5,295  |   |   |   | 3,798 |   |
| Tier 1 capital                                         |   |           | 31,376 |   |   |   | 40,932 |   |
| Allowance for loan losses                              |   |           | 2,193  |   |   |   | 1,748 |   |
| Total Risk-Based capital                               |   | $              | 33,569 |   |   | $      | 42,680 |   |

----

----

|                    |   |                   |   |   |               |   |   |               |   |
|-------------------------|--------|------------------------|--------|--------|--------------------|--------|--------|--------------------|--------|
|                    |   | November 7, 2005 Grant |   |   | June 7, 2006 Grant |   |   | May 25, 2007 Grant |   |
| Dividend yield          |   |                   | 1.89   | %      |               |   | 2.23   | %                  |   |   | 2.24 | % |
| Expected volatility     |   |                   | 12.65  | %      |               |   | 12.17  | %                  |   |   | 11.04 | % |
| Risk-free interest rate |   |                   | 4.56   | %      |               |   | 4.95   | %                  |   |   | 4.86 | % |
| Expected life           |   |                   | 6.5    |   |               |   | 6.5    |               |   |   | 6.5 |   |
| Fair value              |   | $                      | 2.00   |   |               | $      | 1.97   |               |   | $ | 1.84 |   |

|                             |   |   |    |   |                           |   |    |   |   |   |                           |   |
|----------------------------------|--------|--------|---------|--------|--------------------------------|--------|---------|--------|--------|--------|--------------------------------|--------|
|                             |   | 2009   |    |   | 2008                           |   |
|                             |   | Shares |    |   | Weighted-AverageExercise Price |   |    | Shares |   |   | Weighted-AverageExercise Price |   |
| Outstanding at beginning of year |   |   | 269,747 |   |                           | $      | 10.62   |   |   |   | 299,562                        |   |   | $ | 10.62 |   |
| Granted                          |   |   | — |   |                           |   | — |   |   |   | —                        |   |   |   | — |   |
| Exercised                        |   |   | — |   |                           |   | — |   |   |   | —                        |   |   |   | — |   |
| Forfeited                        |   |   | (46,826 | )      |                           |   | 10.62   |   |   |   | (29,815                        | )      |   |   | 10.62 |   |
| Outstanding at end of year       |   |   | 222,921 |   |                           | $      | 10.62   |   |   |   | 269,747                        |   |   | $ | 10.62 |   |
|                             |   |   |    |   |                           |   |    |   |   |   |                           |   |   |   |   |   |
| Options exercisable at year-end  |   |   | 129,153 |   |                           | $      | 10.61   |   |   |   | 131,394                        |   |   | $ | 10.62 |   |

|                |   |                           |    |                                      |   |                           |   |                           |   |                           |   |    |   |   |   |   |   |
|---------------------|--------|--------------------------------|---------|-------------------------------------------|--------|--------------------------------|--------|--------------------------------|--------|--------------------------------|--------|---------|--------|--------|--------|--------|--------|
| Options Outstanding |   | Options Exercisable            |    |
| Exercise Price      |   | NumberOutstandingas of 6/30/09 |    | Weighted-AverageRemainingContractual Life |   | Weighted-AverageExercise Price |   | NumberExercisableas of 6/30/09 |   | Weighted-AverageExercise Price |   |
| $                   | 10.60  |                           | 193,921 |                                      |   | 6.36                           |   |                           | $      | 10.60                          |   | 116,353 |   |   | $      | 10.60  |   |
|                | 10.70  |                           | 23,000  |                                      |   | 7.90                           |   |                           |   | 10.70                          |   | 9,200   |   |   |   | 10.70  |   |
|                | 10.78  |                           | 6,000   |                                      |   | 6.94                           |   |                           |   | 10.78                          |   | 3,600   |   |   |   | 10.78  |   |

----

|                                             |   |     |   |   |   |   |
|--------------------------------------------------|--------|----------|--------|--------|--------|--------|
|                                             |   | June 30, |   |
| ASSETS                                           |   | 2009     |   |   | 2008   |   |
| Cash and due from depository institutions        |   | $        | 191    |   |   | $      | 585 |   |
| Investment in Putnam Bank                        |   |     | 36,209 |   |   |   | 44,902 |   |
| Investment in available-for-sale securities      |   |     | 1,457  |   |   |   | 1,798 |   |
| Loan to ESOP                                     |   |     | 2,218  |   |   |   | 2,311 |   |
| Other assets                                     |   |     | 419    |   |   |   | 448 |   |
| Total assets                                     |   | $        | 40,494 |   |   | $      | 50,044 |   |
|                                             |   |     |   |   |   |   |   |   |
|                                             |   |     |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY       |   |     |   |   |   |   |   |   |
| Other liabilities                                |   | $        | 598    |   |   | $      | 607 |   |
| Stockholders’ equity                       |   |     | 39,896 |   |   |   | 49,437 |   |
| Total liabilities and stockholders’ equity |   | $        | 40,494 |   |   | $      | 50,044 |   |

| Statements of Income |
|----------------------|
| (In Thousands)       |

|                                                                                  |   | For the Years EndedJune 30, |    |
|---------------------------------------------------------------------------------------|--------|-----------------------------|---------|
|                                                                                  |   | 2009                        |    |   | 2008 |   |
| Dividend from subsidiary                                                              |   | $                           | — |   |   | $ | 2,000 |   |
| Interest and dividends on investments                                                 |   |                        | 78      |   |   |   | 96 |   |
| Interest on loan                                                                      |   |                        | 123     |   |   |   | 185 |   |
| Total interest and dividend income                                                    |   |                        | 201     |   |   |   | 2,281 |   |
| Interest expense                                                                      |   |                        | 6       |   |   |   | 22 |   |
| Net interest and dividend income                                                      |   |                        | 195     |   |   |   | 2,259 |   |
| Other expense                                                                         |   |                        | 193     |   |   |   | 181 |   |
| Income before income tax expense and equity in undistributed net income of subsidiary |   |                        | 2       |   |   |   | 2,078 |   |
| Income tax expense                                                                    |   |                        | 1       |   |   |   | 30 |   |
| Income before equity in undistributed net (loss) income of subsidiary                 |   |                        | 1       |   |   |   | 2,048 |   |
| Equity in undistributed net (loss) income of subsidiary                               |   |                        | (7,132  | ) |   |   | 1,020 |   |
| Net (loss) income                                                                     |   | $                           | (7,131  | ) |   | $ | 3,068 |   |

----

|                                                                                     |   |                        |   |   |   |   |
|------------------------------------------------------------------------------------------|--------|-----------------------------|--------|--------|--------|--------|
|                                                                                     |   | For the Years EndedJune 30, |   |
|                                                                                     |   | 2009                        |   |   | 2008   |   |
| Cash flows from operating activities:                                                    |   |                        |   |   |   |   |
| Net (loss) income                                                                        |   | $                           | (7,131 | )      |   | $      | 3,068 |   |
| Adjustments to reconcile net (loss) income to net cash provided by operating activities: |   |                        |   |   |   |   |   |   |
| Amortization of securities, net                                                          |   |                        | 2      |   |   |   | 2 |   |
| Deferred income tax expense                                                              |   |                        | 5      |   |   |   | 131 |   |
| ESOP shares released                                                                     |   |                        | 85     |   |   |   | 122 |   |
| Decrease (increase) in other assets                                                      |   |                        | 1      |   |   |   | (153 | ) |
| Net increase in due to subsidiary                                                        |   |                        | 72     |   |   |   | 191 |   |
| Increase in other liabilities                                                            |   |                        | 13     |   |   |   | 304 |   |
| Stock-based compensation expense                                                         |   |                        | 165    |   |   |   | 109 |   |
| Undistributed net loss (income) of subsidiary                                            |   |                        | 7,132  |   |   |   | (1,020 | ) |
| Net cash provided by operating activities                                                |   |                        | 344    |   |   |   | 2,754 |   |
|                                                                                     |   |                        |   |   |   |   |   |   |
| Cash flows from investing activities:                                                    |   |                        |   |   |   |   |   |   |
| Proceeds from maturities of available-for-sale securities                                |   |                        | 397    |   |   |   | 391 |   |
| Principal payments received on loans to ESOP                                             |   |                        | 93     |   |   |   | 68 |   |
|                                                                                     |   |                        |   |   |   |   |   |   |
| Net cash provided by investing activities                                                |   |                        | 490    |   |   |   | 459 |   |
|                                                                                     |   |                        |   |   |   |   |   |   |
| Cash flows from financing activities:                                                    |   |                        |   |   |   |   |   |   |
| Purchase of treasury stock                                                               |   |                        | (6     | )      |   |   | (2,417 | ) |
| Payment of cash dividends on common stock                                                |   |                        | (1,222 | )      |   |   | (750 | ) |
|                                                                                     |   |                        |   |   |   |   |   |   |
| Net cash used in financing activities                                                    |   |                        | (1,228 | )      |   |   | (3,167 | ) |
|                                                                                     |   |                        |   |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                     |   |                        | (394   | )      |   |   | 46 |   |
| Cash and cash equivalents at beginning of year                                           |   |                        | 585    |   |   |   | 539 |   |
| Cash and cash equivalents at end of year                                                 |   | $                           | 191    |   |   | $      | 585 |   |

----

| ITEM 9. | Changes In and Disagreements With Accountants on Accounting and Financial Disclosure |
|---------|--------------------------------------------------------------------------------------|

|                 |                    |
|----------------------|-------------------------|
| ITEM   9A. | Controls and Procedures |

|                    |                    |
|-------------------------|-------------------------|
| ITEM   9A(T). | Controls and Procedures |

|     |              |
|----------|-------------------|
| ITEM 9B. | Other Information |

----

|     |                                                   |
|----------|--------------------------------------------------------|
| ITEM 10. | Directors, Executive Officers and Corporate Governance |

|     |                   |
|----------|------------------------|
| ITEM 11. | Executive Compensation |

|     |                                                                                           |
|----------|------------------------------------------------------------------------------------------------|
| ITEM 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |

|     |                                                                      |
|----------|---------------------------------------------------------------------------|
| ITEM 13. | Certain Relationships and Related Transactions, and Director Independence |

|     |                                   |
|----------|----------------------------------------|
| ITEM 14. | Principal Accountant Fees and Services |

----

|     |                                       |
|----------|--------------------------------------------|
| ITEM 15. | Exhibits and Financial Statement Schedules |

|   |                                                                 |
|--------|----------------------------------------------------------------------|
|   | (A) Management Responsibility Statement                              |
|   | (B) Report of Independent Registered Public Accounting Firm          |
|   | (C) Consolidated Balance Sheets                                      |
|   | (D) Consolidated Statements of Income                                |
|   | (E) Consolidated Statements of Changes In Stockholders’ Equity |
|   | (F) Consolidated Statements of Cash Flows                            |
|   | (G) Notes to Consolidated Financial Statements                       |

|   |   |                                                                                                                                                                                         |
|--------|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | 3.1    | Charter of PSB Holdings, Inc.*                                                                                                                                                               |
|   |   |                                                                                                                                                                                         |
|   | 3.2    | Bylaws of PSB Holdings, Inc.*                                                                                                                                                                |
|   |   |                                                                                                                                                                                         |
|   | 4.     | Form of Common Stock Certificate of PSB Holdings, Inc.*                                                                                                                                      |
|   |   |                                                                                                                                                                                         |
|   | 10.1   | Employee Stock Ownership Plan*                                                                                                                                                               |
|   |   |                                                                                                                                                                                         |
|   | 10.2   | Deferred Compensation Plan*                                                                                                                                                                  |
|   |   |                                                                                                                                                                                         |
|   | 10.3   | Purchase and assumption agreement concerning the Griswold, Ledyard, and Plainfield branches between People’s Savings Bank and Putnam Bank dated June 13, 2005**                        |
|   |   |                                                                                                                                                                                         |
|   | 10.4   | PSB Holdings, Inc. 2005 Stock-Based Incentive Plan***                                                                                                                                        |
|   |   |                                                                                                                                                                                         |
|   | 14.    | Code of Ethics                                                                                                                                                                               |
|   |   |                                                                                                                                                                                         |
|   | 21.    | Subsidiaries of Registrant*                                                                                                                                                                  |
|   |   |                                                                                                                                                                                         |
|   | 23.1.  | Consent of Shatswell, MacLeod & Company, P.C.                                                                                                                                            |
|   |   |                                                                                                                                                                                         |
|   | 23.2.  | Consent of Whittlesey & Hadley, P.C.                                                                                                                                                     |
|   |   |                                                                                                                                                                                         |
|   | 31.1   | Certification of Chief Executive Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|   |   |                                                                                                                                                                                         |
|   | 31.2   | Certification of Chief Financial Officer pursuant to Rule 13a-14(a) of the Securities Exchange Act of 1934, as amended, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 |
|   |   |                                                                                                                                                                                         |
|   | 32.    | Certification of Chief Financial Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002                |

|   |                                                                                                                                                                                                         |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| *      | Incorporated by reference to the Registration Statement on Form SB-2 of PSB Holdings, Inc. (file no. 333-116364), originally filed with the Securities and Exchange Commission on June 10, 2004, as amended. |
| **     | Incorporated by reference to Exhibit 10.1 of the current report on form 8-K of PSB Holdings, Inc. originally filed with the Securities and Exchange Commission on June 16, 2005.                             |
| ***    | Incorporated by reference to Appendix B of the Company’s Definitive Proxy Statement dated September 20, 2005 as filed with the Securities and Exchange Commission on September 19, 2005.               |
| ****   | Incorporated by reference to Exhibit 14 of the Company’s Annual Report on Form 10K for year ended June 30, 2008, filed with the Securities and Exchange Commission on September 23, 2008.              |

----

|                     |               |                                              |
|--------------------------|--------------------|---------------------------------------------------|
|                     | PSB HOLDINGS, INC. |
|                     |               |                                              |
| Date: September 25, 2009 | By:                | /S/     Thomas A. Borner |
|                     |               | Thomas A. Borner                                  |
|                     |               | Chief Executive Officer and Director              |
|                     |               | (Duly Authorized Representative)                  |

|                                                     |   |                                                                            |   |               |   |
|----------------------------------------------------------|--------|---------------------------------------------------------------------------------|--------|--------------------|--------|
| Signatures                                               |   | Title                                                                           |   | Date               |   |
|                                                     |   |                                                                            |   |               |   |
| /s/     Thomas A. Borner        |   | Chief Executive Officer and Chairman of the Board (Principal Executive Officer) |   | September 25, 2009 |   |
| Thomas A. Borner                                         |   |                                                                            |   |               |
|                                                     |   |                                                                            |   |               |   |
| /s/     Robert J. Halloran, Jr. |   | President and Treasurer (Principal Financial and Accounting Officer)            |   | September 25, 2009 |   |
| Robert J. Halloran, Jr.                                  |   |                                                                            |   |               |
|                                                     |   |                                                                            |   |               |   |
| /s/     Charles W. Bentley, Jr. |   | Director                                                                        |   | September 25, 2009 |   |
| Charles W. Bentley, Jr.                                  |   |                                                                            |   |               |   |
|                                                     |   |                                                                            |   |               |   |
| /s/     Jitendra K. Sinha       |   | Director                                                                        |   | September 25, 2009 |   |
| Jitendra K. Sinha                                        |   |                                                                            |   |               |   |
|                                                     |   |                                                                            |   |               |   |
| /s/     Paul M. Kelly           |   | Director                                                                        |   | September 25, 2009 |   |
| Paul M. Kelly                                            |   |                                                                            |   |               |   |
|                                                     |   |                                                                            |   |               |   |
| /s/     Richard A. Loomis       |   | Director                                                                        |   | September 25, 2009 |   |
| Richard A. Loomis                                        |   |                                                                            |   |               |   |
|                                                     |   |                                                                            |   |               |   |
| /s     John P. Miller           |   | Director                                                                        |   | September 25, 2009 |   |
| John P. Miller                                           |   |                                                                            |   |               |   |
|                                                     |   |                                                                            |   |               |   |
| /s/     Mary E. Patenaude       |   | Director                                                                        |   | September 25, 2009 |   |
| Mary E. Patenaude                                        |   |                                                                            |   |               |   |
|                                                     |   |                                                                            |   |               |   |
| /s/     Charles H. Puffer       |   | Director                                                                        |   | September 25, 2009 |   |
| Charles H. Puffer                                        |   |                                                                            |   |               |   |