**UNITED      STATES SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON,      D.C.  20549**

----

**FORM      10-Q**

**(Mark      One)                                                                                                                                                                         **

**ý          Quarterly      report pursuant to Section 13 or 15(d) of the Securities Exchange Act of      1934**

**For      the quarterly period ended September 30, 2007**

**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 000-51369**

**United      Financial Bancorp, Inc.**

| **Federal**                                    | **83-0395247**                        |
|------------------------------------------------|---------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer       |
| incorporation                or organization)  | Identification                Number) |

**95      Elm Street, West Springfield, Massachusetts 01089**

**(413)      787-1700**

| Large                accelerated filer o | Accelerated                filer ý | Non-accelerated                filer o |
|------------------------------------------|-----------------------------------------|----------------------------------------|

**Common      stock, $0.01 par value**

**17,068,160      shares outstanding as of November 8, 2007**

----

| **United                Financial Bancorp, Inc.**  |
|---------------------------------------------------------|
|                                                    |
| INDEX                                                   |
|                                                    | Page |
|                                                    |   |
| **PART                I. FINANCIAL INFORMATION**        |   |
|                                                    |   |   |
| Item                1                                   | Consolidated                Financial Statements                (unaudited) |   |
|                                                    |   |   |
|                                                    | Consolidated                Statements of ConditionSeptember                30, 2007 and December 31, 2006 | 1 |
|                                                    |   |   |
|                                                    | Consolidated                Statements of EarningsThree                Months and Nine Months Ended September 30, 2007 and                2006 | 2 |
|                                                    |   |   |
|                                                    | Consolidated                Statements of Stockholders’ Equity and                Comprehensive IncomeNine                Months Ended September 30, 2007 and                2006 | 3 |
|                                                    |   |   |
|                                                    | Consolidated                Statements of Cash FlowsNine                Months Ended September 30, 2007 and                2006 | 4 |
|                                                    |   |   |
|                                                    | Notes                to Unaudited Consolidated Financial                Statements | 5 |
|                                                    |   |   |
| Item                2                                   | Management's                Discussion and Analysis of Financial                   Conditionand                Results of Operations | 11 |
|                                                    |   |   |
| Item                3                                   | Quantitative                and Qualitative Disclosures About Market                Risk | 21 |
|                                                    |   |   |
| Item                4                                   | Controls                and Procedures | 26 |
|                                                    |   |   |
| **PART                II. OTHER INFORMATION**           |   |
|                                                    |   |   |
| Item                1                                   | Legal                Proceedings | 26 |
|                                                    |   |   |
| Item                1A                                  | Risk                Factors | 26 |
|                                                    |   |   |
| Item                2                                   | Unregistered                Sales of Equity Securities and Use of                Proceeds | 27 |
|                                                    |   |   |
| Item                3                                   | Defaults                Upon Senior Securities | 27 |
|                                                    |   |   |
| Item                4.                                  | Submission                of Matters to a Vote of Security                Holders | 27 |
|                                                    |   |   |
| Item                5.                                  | Other                Information | 27 |
|                                                    |   |   |
| Item                6                                   | Exhibits | 28 |
|                                                    |   |   |
|                                                    |   |   |
| **SIGNATURES**                                          | 29 |

----

*Index*

|                        |                                                                                                                                   |   |
|-----------------------------|----------------------------------------------------------------------------------------------------------------------------------------|--------|
| Exhibit                31.1 | Certification                of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002       | 30     |
|                        |                                                                                                                                   |   |
| Exhibit                31.2 | Certification                of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002       | 31     |
|                        |                                                                                                                                   |   |
| Exhibit                32.1 | Statement                of Chief Executive Officer Furnished Pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002 | 32     |
|                        |                                                                                                                                   |   |
| Exhibit                32.2 | Statement                of Chief Financial Officer Furnished Pursuant to Section 906 of the                Sarbanes-Oxley Act of 2002 | 33     |

----

*Index*

**PART      I.                      FINANCIAL      INFORMATION**

**ITEM      1.                      Consolidated      Financial Statements**

**UNITED      FINANCIAL BANCORP, INC. AND SUBSIDIARY**

----

|                                                                                                                        |   | **September                  30,** |      |   | **December                  31,** |   |
|-----------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------|-----------|--------|-----------------------------------|--------|
|                                                                                                                        |   | **2007**                           |      |   | **2006**                          |   |
|                                                                                                                        |   | **(unaudited)**                    |      |   |                              |   |
| **ASSETS**                                                                                                                  |   |                               |      |   |                              |   |
|                                                                                                                        |   |                               |      |   |                              |   |
| Cash                  and due from banks                                                                                    |   | $                                  | 16,543    |   |                              | $      | 15,459 |   |
| Interest-bearing                  deposits                                                                                  |   |                               | 11,948    |   |                              |   | 9,960 |   |
|         Total                  cash and cash equivalents                            |   |                               | 28,491    |   |                              |   | 25,419 |   |
|                                                                                                                        |   |                               |      |   |                              |   |   |   |
| Short-term                  investments                                                                                     |   |                               | 1,017     |   |                              |   | - |   |
| Securities                  available for sale, at fair value                                                               |   |                               | 183,862   |   |                              |   | 190,237 |   |
| Securities                  to be held to maturity, at amortized cost  (fair value $3,663                  at     |   |                               |      |   |                              |   |   |   |
|    September                  30, 2007 and $3,227 at December 31, 2006)                                      |   |                               | 3,684     |   |                              |   | 3,241 |   |
| Loans,                  net of allowance for loan losses of  $7,612 at September 30,                  2007        |   |                               |      |   |                              |   |   |   |
|    and                  $7,218 at December 31, 2006                                                          |   |                               | 808,112   |   |                              |   | 756,180 |   |
| Other                  real estate owned                                                                                    |   |                               | 880       |   |                              |   | 562 |   |
| Accrued                  interest receivable                                                                                |   |                               | 4,652     |   |                              |   | 4,320 |   |
| Stock                  in the Federal Home Loan Bank of Boston                                                              |   |                               | 9,885     |   |                              |   | 9,274 |   |
| Banking                  premises and equipment, net                                                                        |   |                               | 10,564    |   |                              |   | 8,821 |   |
| Bank-owned                  life insurance                                                                                  |   |                               | 6,595     |   |                              |   | 6,304 |   |
| Other                  assets                                                                                               |   |                               | 6,204     |   |                              |   | 5,075 |   |
|                                                                                                                        |   |                               |      |   |                              |   |   |   |
|         TOTAL                  ASSETS                                               |   | $                                  | 1,063,946 |   |                              | $      | 1,009,433 |   |
|                                                                                                                        |   |                               |      |   |                              |   |   |   |
| **LIABILITIES                  AND STOCKHOLDERS’ EQUITY**                                                             |   |                               |      |   |                              |   |   |   |
|                                                                                                                        |   |                               |      |   |                              |   |   |   |
| Liabilities:                                                                                                                |   |                               |      |   |                              |   |   |   |
| Deposits:                                                                                                                   |   |                               |      |   |                              |   |   |   |
|     Interest-bearing                                                                                    |   | $                                  | 618,707   |   |                              | $      | 588,496 |   |
|     Non-interest-bearing                                                                                |   |                               | 104,411   |   |                              |   | 97,190 |   |
|         Total                  deposits                                             |   |                               | 723,118   |   |                              |   | 685,686 |   |
| Federal                  Home Loan Bank of Boston advances                                                                  |   |                               | 183,852   |   |                              |   | 169,806 |   |
| Repurchase                  agreements                                                                                      |   |                               | 7,519     |   |                              |   | 10,425 |   |
| Escrow                  funds held for borrowers                                                                            |   |                               | 1,410     |   |                              |   | 1,121 |   |
| Capitalized                  lease obligation                                                                               |   |                               | 1,900     |   |                              |   | - |   |
| Accrued                  expenses and other liabilities                                                                     |   |                               | 4,899     |   |                              |   | 4,684 |   |
|         Total                  liabilities                                          |   |                               | 922,698   |   |                              |   | 871,722 |   |
|                                                                                                                        |   |                               |      |   |                              |   |   |   |
| Stockholders’                  equity:                                                                                |   |                               |      |   |                              |   |   |   |
| Preferred                  stock, par value $0.01 per share, authorized 5,000,000                  shares;                  |   |                               |      |   |                              |   |   |   |
|    none                  issued                                                                              |   |                               | -         |   |                              |   | - |   |
| Common                  stock, par value $0.01 per share, authorized 60,000,000                  shares;                    |   |                               |      |   |                              |   |   |   |
|    17,205,995                  shares issued at September 30, 2007 and at December 31,                  2006 |   |                               | 172       |   |                              |   | 172 |   |
| Paid-in                  capital                                                                                            |   |                               | 77,127    |   |                              |   | 75,520 |   |
| Retained                  earnings                                                                                          |   |                               | 72,190    |   |                              |   | 70,406 |   |
| Unearned                  compensation                                                                                      |   |                               | (5,439    | )      |                              |   | (5,772 | ) |
| Treasury                  stock, at cost (137,835 shares at September 30, 2007 and                  51,445                  |   |                               |      |   |                              |   |   |   |
|    shares                  at December 31, 2006)                                                             |   |                               | (1,914    | )      |                              |   | (664 | ) |
| Accumulated                  other comprehensive loss, net of taxes                                                         |   |                               | (888      | )      |                              |   | (1,951 | ) |
|         Total                  stockholders’ equity                           |   |                               | 141,248   |   |                              |   | 137,711 |   |
|                                                                                                                        |   |                               |      |   |                              |   |   |   |
|         TOTAL                  LIABILITIES AND STOCKHOLDERS’ EQUITY           |   | $                                  | 1,063,946 |   |                              | $      | 1,009,433 |   |
|                                                                                                                        |   |                               |      |   |                              |   |   |   |

----

*Index*

**UNITED      FINANCIAL BANCORP, INC. AND SUBSIDIARY**

----

|                                                                                    |   | **Three                  Months Ended** |       |   | **Nine                  Months Ended** |   |
|-----------------------------------------------------------------------------------------|--------|-----------------------------------------|------------|--------|----------------------------------------|--------|
|                                                                                    |   | **September                  30,**      |       |   | **September                  30,**     |   |
|                                                                                    |   | **2007**                                |       |   | **2006**                               |   |   | **2007** |   |   | **2006** |   |
| Interest                  and dividend income:                                          |   |                                    |       |   |                                   |   |   |   |   |   |   |   |
|    Loans                                                                 |   | $                                       | 12,712     |   |                                   | $      | 11,043 |   |   | $ | 37,017 |   |   | $ | 30,719 |   |
|    Investments                                                           |   |                                    | 2,017      |   |                                   |   | 2,195 |   |   |   | 5,849 |   |   |   | 6,761 |   |
|    Other                  interest-earning assets                        |   |                                    | 247        |   |                                   |   | 256 |   |   |   | 935 |   |   |   | 786 |   |
|       Total                  interest and dividend income |   |                                    | 14,976     |   |                                   |   | 13,494 |   |   |   | 43,801 |   |   |   | 38,266 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Interest                  expense:                                                      |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    Deposits                                                              |   |                                    | 5,672      |   |                                   |   | 4,885 |   |   |   | 16,330 |   |   |   | 13,590 |   |
|    Borrowings                                                            |   |                                    | 2,051      |   |                                   |   | 1,665 |   |   |   | 6,127 |   |   |   | 4,059 |   |
|       Total                  interest expense             |   |                                    | 7,723      |   |                                   |   | 6,550 |   |   |   | 22,457 |   |   |   | 17,649 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income before provision for loan losses                   |   |                                    | 7,253      |   |                                   |   | 6,944 |   |   |   | 21,344 |   |   |   | 20,617 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Provision                  for loan losses                                              |   |                                    | 436        |   |                                   |   | 165 |   |   |   | 1,040 |   |   |   | 627 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income after provision for loan losses                    |   |                                    | 6,817      |   |                                   |   | 6,779 |   |   |   | 20,304 |   |   |   | 19,990 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                  income:                                                   |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    Fee                  income on depositors’ accounts             |   |                                    | 1,105      |   |                                   |   | 1,146 |   |   |   | 3,240 |   |   |   | 3,128 |   |
|    Loss                  on sale and write-down of securities            |   |                                    | (141       | )      |                                   |   | (218 | ) |   |   | (170 | ) |   |   | (218 | ) |
|    Wealth                  management income                             |   |                                    | 200        |   |                                   |   | 126 |   |   |   | 491 |   |   |   | 319 |   |
|    Other                  income                                         |   |                                    | 248        |   |                                   |   | 240 |   |   |   | 684 |   |   |   | 764 |   |
|       Total                  non-interest income          |   |                                    | 1,412      |   |                                   |   | 1,294 |   |   |   | 4,245 |   |   |   | 3,993 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest                  expense:                                                  |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    Salaries                  and benefits                                |   |                                    | 3,546      |   |                                   |   | 3,014 |   |   |   | 11,119 |   |   |   | 9,173 |   |
|    Occupancy                  expenses                                   |   |                                    | 469        |   |                                   |   | 455 |   |   |   | 1,441 |   |   |   | 1,268 |   |
|    Marketing                  expenses                                   |   |                                    | 277        |   |                                   |   | 329 |   |   |   | 1,048 |   |   |   | 1,093 |   |
|    Data                  processing expenses                             |   |                                    | 711        |   |                                   |   | 622 |   |   |   | 2,006 |   |   |   | 1,813 |   |
|    Professional                  fees                                    |   |                                    | 220        |   |                                   |   | 223 |   |   |   | 872 |   |   |   | 702 |   |
|    Other                  expenses                                       |   |                                    | 908        |   |                                   |   | 936 |   |   |   | 2,867 |   |   |   | 3,143 |   |
|       Total                  non-interest expense         |   |                                    | 6,131      |   |                                   |   | 5,579 |   |   |   | 19,353 |   |   |   | 17,192 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  before income taxes                                             |   |                                    | 2,098      |   |                                   |   | 2,494 |   |   |   | 5,196 |   |   |   | 6,791 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Income                  tax expense                                                     |   |                                    | 807        |   |                                   |   | 981 |   |   |   | 2,093 |   |   |   | 2,633 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  income                                                             |   | $                                       | 1,291      |   |                                   | $      | 1,513 |   |   | $ | 3,103 |   |   | $ | 4,158 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  per share:                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                                                                 |   | $                                       | 0.08       |   |                                   | $      | 0.09 |   |   | $ | 0.19 |   |   | $ | 0.25 |   |
|    Diluted                                                               |   | $                                       | 0.08       |   |                                   | $      | 0.09 |   |   | $ | 0.19 |   |   | $ | 0.25 |   |
|                                                                                    |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average shares outstanding:                                   |   |                                    |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                                                                 |   |                                    | 16,266,869 |   |                                   |   | 16,382,133 |   |   |   | 16,259,601 |   |   |   | 16,528,981 |   |
|    Diluted                                                               |   |                                    | 16,323,516 |   |                                   |   | 16,395,955 |   |   |   | 16,320,535 |   |   |   | 16,533,639 |   |

**.**

----

*Index*

**UNITED      FINANCIAL BANCORP, INC. AND SUBSIDIARY**

----

|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   | **Accumulated**                    |   |   |      |   |
|---------------------------------------------------------------------------|--------|-----------------|------------|--------|------------|--------|--------|-------------|--------|--------|--------------|--------|--------|------------------|--------|--------|--------------|--------|--------|------------------------------------|--------|--------|-----------|--------|
|                                                                      |   | **Common**      |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   | **Other**                          |   |   |      |   |
|                                                                      |   | **Shares**      |       |   | **Common** |   |   | **Paid-In** |   |   | **Retained** |   |   | **Unearned**     |   |   | **Treasury** |   |   | **Comprehensive**                  |   |   |      |   |
|                                                                      |   | **Outstanding** |       |   | **Stock**  |   |   | **Capital** |   |   | **Earnings** |   |   | **Compensation** |   |   | **Stock**    |   |   | **Income                  (Loss)** |   |   | **Total** |   |
|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |
| Balances                  at December 31, 2005                            |   |            | 17,205,995 |   |       | $      | 172    |        |   | $      | 78,446       |   |   | $                | 66,944 |   |         | $      | (6,092 | )                                  |   | $      | -         |   |   | $ | (2,465 | ) |   | $ | 137,005 |   |
|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |
| Net                  income                                               |   |            | -          |   |       |   | -      |        |   |   | -            |   |   |             | 4,158  |   |         |   | -      |                               |   |   | -         |   |   |   | - |   |   |   | 4,158 |   |
| Other                  comprehensive income                               |   |            | -          |   |       |   | -      |        |   |   | -            |   |   |             | -      |   |         |   | -      |                               |   |   | -         |   |   |   | 181 |   |   |   | 181 |   |
|      Total                  comprehensive income |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   | 4,339 |   |
|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |
| Cash                  dividends declared ($0.15 per share)                |   |            | -          |   |       |   | -      |        |   |   | -            |   |   |             | (1,095 | )      |         |   | -      |                               |   |   | -         |   |   |   | - |   |   |   | (1,095 | ) |
| Treasury                  stock purchases                                 |   |            | (340,000   | )      |       |   | -      |        |   |   | -            |   |   |             | -      |   |         |   | -      |                               |   |   | (4,378    | )      |   |   | - |   |   |   | (4,378 | ) |
| Reissuance                  of treasury shares in connection              |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |
|    with                  restricted stock grants           |   |            | 288,000    |   |       |   | -      |        |   |   | (3,709       | )      |   |             | -      |   |         |   | -      |                               |   |   | 3,709     |   |   |   | - |   |   |   | - |   |
| Stock-based                  compensation                                 |   |            | -          |   |       |   |   |        |   |   | 159          |   |   |             | -      |   |         |   | -      |                               |   |   | -         |   |   |   | - |   |   |   | 159 |   |
| ESOP                  shares committed to be released                     |   |            | -          |   |       |   | -      |        |   |   | 53           |   |   |             | -      |   |         |   | 241    |                               |   |   | -         |   |   |   | - |   |   |   | 294 |   |
|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |
| Balances                  at September 30, 2006                           |   |            | 17,153,995 |   |       | $      | 172    |        |   | $      | 74,949       |   |   | $                | 70,007 |   |         | $      | (5,851 | )                                  |   | $      | (669      | )      |   | $ | (2,284 | ) |   | $ | 136,324 |   |
|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |
|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |
| Balances                  at December 31, 2006                            |   |            | 17,154,550 |   |       | $      | 172    |        |   | $      | 75,520       |   |   | $                | 70,406 |   |         | $      | (5,772 | )                                  |   | $      | (664      | )      |   | $ | (1,951 | ) |   | $ | 137,711 |   |
|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |
| Net                  income                                               |   |            | -          |   |       |   | -      |        |   |   | -            |   |   |             | 3,103  |   |         |   | -      |                               |   |   | -         |   |   |   | - |   |   |   | 3,103 |   |
| Other                  comprehensive income                               |   |            | -          |   |       |   | -      |        |   |   | -            |   |   |             | -      |   |         |   | -      |                               |   |   | -         |   |   |   | 1,063 |   |   |   | 1,063 |   |
|      Total                  comprehensive income |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   | 4,166 |   |
|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |
| Cash                  dividends declared ($0.18 per share)                |   |            | -          |   |       |   | -      |        |   |   | -            |   |   |             | (1,319 | )      |         |   | -      |                               |   |   | -         |   |   |   | - |   |   |   | (1,319 | ) |
| Treasury                  stock purchases                                 |   |            | (86,390    | )      |       |   | -      |        |   |   | -            |   |   |             | -      |   |         |   | -      |                               |   |   | (1,250    | )      |   |   | - |   |   |   | (1,250 | ) |
| Stock-based                  compensation                                 |   |            | -          |   |       |   | -      |        |   |   | 1,476        |   |   |             | -      |   |         |   | -      |                               |   |   | -         |   |   |   | - |   |   |   | 1,476 |   |
| ESOP                  shares committed to be released                     |   |            | -          |   |       |   | -      |        |   |   | 131          |   |   |             | -      |   |         |   | 333    |                               |   |   | -         |   |   |   | - |   |   |   | 464 |   |
|                                                                      |   |            |       |   |       |   |   |        |   |   |         |   |   |             |   |   |         |   |   |                               |   |   |      |   |   |   |   |   |   |   |   |   |
| Balances                  at September 30, 2007                           |   |            | 17,068,160 |   |       | $      | 172    |        |   | $      | 77,127       |   |   | $                | 72,190 |   |         | $      | (5,439 | )                                  |   | $      | (1,914    | )      |   | $ | (888 | ) |   | $ | 141,248 |   |

| The                  components of other comprehensive income and related tax effects                  are as                  follows: |   |                                                 |   |   |
|-----------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|--------|
|                                                                                                                                    |   |                                                 |   |   |   |   |
|                                                                                                                                    |   | **Nine                  Months ended September 30,** |   |
|                                                                                                                                    |   | **2007**                                             |   |   | **2006** |   |
|                                                                                                                                    |   |                                                 |   |   |   |   |
| Change                  in unrealized holding gains on available-for-sale                  securities                                   |   | $                                                    | 1,591  |   |   | $ | 90 |   |
| Reclassification                  adjustment for losses realized in income                                                              |   |                                                 | 170    |   |   |   | 218 |   |
|    Net                  change in unrealized gains                                                                       |   |                                                 | 1,761  |   |   |   | 308 |   |
|                                                                                                                                    |   |                                                 |   |   |   |   |   |   |
| Tax                  effect                                                                                                             |   |                                                 | 698    |   |   |   | 127 |   |
|                                                                                                                                    |   |                                                 |   |   |   |   |   |   |
|    Other                  comprehensive income                                                                           |   | $                                                    | 1,063  |   |   | $ | 181 |   |
|                                                                                                                                    |   |                                                 |   |   |   |   |   |   |

**.**

----

*Index*

**UNITED      FINANCIAL BANCORP, INC. AND SUBSIDIARY**

----

|                                                                                                                                                         |   | **2007** |    |   | **2006** |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------|---------|--------|----------|--------|
| **Cash                  flows from operating activities:**                                                                                                   |   |     |    |   |     |   |
| Net                  income                                                                                                                                  |   | $        | 3,103   |   |     | $      | 4,158 |   |
| Adjustments                  to reconcile net income to net cash provided by operating                  activities:                                          |   |     |    |   |     |   |   |   |
|    Provision                  for loan losses                                                                                                 |   |     | 1,040   |   |     |   | 627 |   |
|    ESOP                  expense                                                                                                              |   |     | 464     |   |     |   | 294 |   |
|    Stock-based                  compensation                                                                                                  |   |     | 1,476   |   |     |   | 159 |   |
|    Amortization                  of premiums and discounts                                                                                    |   |     | 83      |   |     |   | 272 |   |
|    Depreciation                  and amortization                                                                                             |   |     | 638     |   |     |   | 537 |   |
|    Amortization                  of intangible assets                                                                                         |   |     | 23      |   |     |   | - |   |
|    Net                  (gain) loss on sale of other real estate owned                                                                        |   |     | (14     | )      |     |   | 21 |   |
|    Net                  loss on sale of securities                                                                                            |   |     | 170     |   |     |   | 218 |   |
|    Net                  loss on sale of loans                                                                                                 |   |     | 5       |   |     |   | - |   |
|    Increase                  in cash surrender value of bank-owned life insurance                                                             |   |     | (291    | )      |     |   | (227 | ) |
|    Increase                  in accrued interest receivable                                                                                   |   |     | (332    | )      |     |   | (482 | ) |
|    Increase                  in other assets                                                                                                  |   |     | (1,023  | )      |     |   | (2,024 | ) |
|    (Decrease)                  increase in accrued expenses and other liabilities                                                             |   |     | (475    | )      |     |   | 2,437 |   |
| Net                  cash provided by operating activities                                                                                                   |   |     | 4,867   |   |     |   | 5,990 |   |
| **Cash                  flows from investing activities:**                                                                                                   |   |     |    |   |     |   |   |   |
|    Purchases                  of securities available for sale                                                                                |   |     | (65,230 | )      |     |   | (30,318 | ) |
|    Proceeds                  from sales of securities available for sale                                                                      |   |     | 14,449  |   |     |   | 25,436 |   |
|    Proceeds                  from maturities, calls and principal repayments of securities available                  for sale                |   |     | 58,671  |   |     |   | 35,127 |   |
|    Purchases                  of securities held to maturity                                                                                  |   |     | (675    | )      |     |   | - |   |
|    Proceeds                  from maturities, calls and principal repayments of securities held                  to                  maturity |   |     | 225     |   |     |   | 25 |   |
|    Investment                  in short term time deposits                                                                                    |   |     | (1,017  | )      |     |   | - |   |
|    Purchases                  of Federal Home Loan Bank of Boston stock                                                                       |   |     | (611    | )      |     |   | (2,152 | ) |
|    Proceeds                  from sales of other real estate owned                                                                            |   |     | 576     |   |     |   | 1,852 |   |
|    Net                  loan originations and principal repayments                                                                            |   |     | (55,755 | )      |     |   | (97,443 | ) |
|    Proceeds                  from sales of loans                                                                                              |   |     | 1,898   |   |     |   | - |   |
|    Purchases                  of property and equipment                                                                                       |   |     | (441    | )      |     |   | (877 | ) |
|    Cash                  paid to acquire Levine Financial Group                                                                               |   |     | (55     | )      |     |   | (100 | ) |
| Net                  cash used in investing activities                                                                                                       |   |     | (47,965 | )      |     |   | (68,450 | ) |
| **Cash                  flows from financing activities:**                                                                                                   |   |     |    |   |     |   |   |   |
|    Net                  increase in deposits                                                                                                  |   |     | 37,432  |   |     |   | 39,011 |   |
|    Increase                  in short term borrowings                                                                                         |   |     | 32,000  |   |     |   | 30,000 |   |
|    Proceeds                  of Federal Home Loan Bank of Boston long term advances                                                           |   |     | 20,000  |   |     |   | 56,201 |   |
|    Repayments                  of Federal Home Loan Bank of Boston long term advances                                                         |   |     | (37,954 | )      |     |   | (50,669 | ) |
|    Net                  decrease in repurchase agreements                                                                                     |   |     | (2,906  | )      |     |   | (2,514 | ) |
|    Net                  increase in escrow funds held for borrowers                                                                           |   |     | 289     |   |     |   | 195 |   |
|    Treasury                  stock purchases                                                                                                  |   |     | (1,250  | )      |     |   | (4,378 | ) |
|    Cash                  dividends paid                                                                                                       |   |     | (1,319  | )      |     |   | (1,095 | ) |
|    Payments                  on capitalized lease obligation                                                                                  |   |     | (122    | )      |     |   | - |   |
| Net                  cash provided by financing activities                                                                                                   |   |     | 46,170  |   |     |   | 66,751 |   |
| Increase                  in cash and cash equivalents                                                                                                       |   |     | 3,072   |   |     |   | 4,291 |   |
| Cash                  and cash equivalents at beginning of period                                                                                            |   |     | 25,419  |   |     |   | 15,843 |   |
| Cash                  and cash equivalents at end of  period                                                                                       |   | $        | 28,491  |   |     | $      | 20,134 |   |
|                                                                                                                                                         |   |     |    |   |     |   |   |   |
| **Supplemental                  Disclosure of Cash Flow Information:**                                                                                       |   |     |    |   |     |   |   |   |
| Cash                  paid during the period:                                                                                                                |   |     |    |   |     |   |   |   |
|    Interest                  on deposits, borrowings and other interest bearing                  liabilities                                  |   | $        | 22,418  |   |     | $      | 18,416 |   |
|    Income                  taxes – net                                                                                                  |   |     | 2,463   |   |     |   | 2,062 |   |
| Non-cash                  item:                                                                                                                              |   |     |    |   |     |   |   |   |
|    Capitalized                  lease asset and obligation                                                                                    |   | $        | 1,932   |   |     | $      | - |   |
|    Transfer                  of loans to other real estate owned                                                                              |   |     | 880     |   |     |   | - |   |
|                                                                                                                                                         |   |     |    |   |     |   |   |   |

**.**

----

*Index*

**UNITED      FINANCIAL BANCORP, INC. AND SUBSIDIARY**

**NOTES      TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS**

**SEPTEMBER      30, 2007**

**Dollars      in Thousands (except per share amounts)**

----

**NOTE      A – BASIS OF PRESENTATION**

**NOTE      B – RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS**

----

*Index*

**NOTE      C – CRITICAL ACCOUNTING POLICIES**

**NOTE      D – EARNINGS PER SHARE**

----

*Index*

|                                                                                |   | **Three                  Months Ended**  |       |   | **Nine                  Months Ended** |   |
|-------------------------------------------------------------------------------------|--------|------------------------------------------|------------|--------|----------------------------------------|--------|
|                                                                                |   | **September                  30,**  |       |   | **September                  30,**     |   |
|                                                                                |   | **2007**                                 |       |   | **2006**                               |   |   | **2007** |   |   | **2006** |   |
|                                                                                |   |                                     |       |   |                                   |   |   |   |   |   |   |   |
| Net                  income                                                         |   | $                                        | 1,291      |   |                                   | $      | 1,513 |   |   | $ | 3,103 |   |   | $ | 4,158 |   |
| Weighted                  average common shares applicable to                       |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    basic                  EPS                                        |   |                                     | 16,266,869 |   |                                   |   | 16,382,133 |   |   |   | 16,259,601 |   |   |   | 16,528,981 |   |
| Effect                  of dilutive potential                  common shares (1, 2) |   |                                     | 56,647     |   |                                   |   | 13,822 |   |   |   | 60,934 |   |   |   | 4,658 |   |
| Weighted                  average common shares applicable to                       |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    diluted                  EPS                                      |   |                                     | 16,323,516 |   |                                   |   | 16,395,955 |   |   |   | 16,320,535 |   |   |   | 16,533,639 |   |
|                                                                                |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings                  per share:                                                |   |                                     |       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                                                             |   | $                                        | 0.08       |   |                                   | $      | 0.09 |   |   | $ | 0.19 |   |   | $ | 0.25 |   |
|    Diluted                                                           |   | $                                        | 0.08       |   |                                   | $      | 0.09 |   |   | $ | 0.19 |   |   | $ | 0.25 |   |

| (1)   For                  the three and nine months ended September 30, 2007 and September                  30, 2006,                  options to purchase 748,000 and 727,000 shares, respectively were                  outstanding but not included in the computation of earnings per                  share                  because they were antidilutive. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)                    Includes incremental shares related to stock options and restricted                  stock.                                                                                                                                                                                                                                                      |   |   |   |   |   |

**NOTE      E – LOANS**

|                                                        |   | **September                  30,** |    |   | **December                  31,** |   |
|-------------------------------------------------------------|--------|------------------------------------|---------|--------|-----------------------------------|--------|
|                                                        |   | **2007**                           |    |   | **2006**                          |   |
|                                                        |   |                               |    |   |                              |   |
| One-to-four                  family residential real estate |   | $                                  | 336,064 |   |                              | $      | 319,108 |   |
| Commercial                  real estate                     |   |                               | 204,325 |   |                              |   | 175,564 |   |
| Construction                                                |   |                               | 43,614  |   |                              |   | 54,759 |   |
| Home                  equity loans                          |   |                               | 118,712 |   |                              |   | 112,739 |   |
| Commercial                  and industrial                  |   |                               | 80,140  |   |                              |   | 69,762 |   |
| Consumer                                                    |   |                               | 31,451  |   |                              |   | 30,181 |   |
|    Total                  loans              |   |                               | 814,306 |   |                              |   | 762,113 |   |
|                                                        |   |                               |    |   |                              |   |   |   |
| Net                  deferred loan costs and fees           |   |                               | 1,418   |   |                              |   | 1,285 |   |
| Allowance                  for loan losses                  |   |                               | (7,612  | )      |                              |   | (7,218 | ) |
|    Loans,                  net               |   | $                                  | 808,112 |   |                              | $      | 756,180 |   |

----

*Index*

**NOTE      F – NON-PERFORMING ASSETS**

|                                                                                 |   |                                  |   |   |                                 |   |
|--------------------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------------------------------------|--------|
|                                                                                 |   | **At                  September 30,** |   |   | **At                  December 31,** |   |
|                                                                                 |   | **2007**                              |   |   | **2006**                             |   |
|                                                                                 |   |                                  |   |   |                                 |   |
| Non-accrual                  loans:                                                  |   |                                  |   |   |                                 |   |
|    Residential                  mortgages                             |   | $                                     | 119    |   |                                 | $      | - |   |
|    Commercial                  mortgages                              |   |                                  | 535    |   |                                 |   | 1,144 |   |
|    Home                  equity                                       |   |                                  | 52     |   |                                 |   | 20 |   |
|    Commercial                  and industrial                         |   |                                  | 302    |   |                                 |   | 123 |   |
|    Other                  consumer                                    |   |                                  | -      |   |                                 |   | 1 |   |
|       Total                  non-accrual loans         |   |                                  | 1,008  |   |                                 |   | 1,288 |   |
|                                                                                 |   |                                  |   |   |                                 |   |   |   |
| Accruing                  loans 90 days or more past due                             |   |                                  | -      |   |                                 |   | - |   |
|                                                                                 |   |                                  |   |   |                                 |   |   |   |
| Total                  non-performing loans                                          |   |                                  | 1,008  |   |                                 |   | 1,288 |   |
|                                                                                 |   |                                  |   |   |                                 |   |   |   |
| Other                  real estate owned                                             |   |                                  | 880    |   |                                 |   | 562 |   |
|       Total                  non-performing assets     |   | $                                     | 1,888  |   |                                 | $      | 1,850 |   |
|                                                                                 |   |                                  |   |   |                                 |   |   |   |
| Ratios:                                                                              |   |                                  |   |   |                                 |   |   |   |
|    Total                  non-performing loans to total loans         |   |                                  | 0.12   | %      |                                 |   | 0.17 | % |
|    Total                  non-performing assets to total assets       |   |                                  | 0.18   | %      |                                 |   | 0.18 | % |
|    Allowance                  for loan losses to non-performing loans |   |                                  | 755.16 | %      |                                 |   | 560.40 | % |
|                                                                                 |   |                                  |   |   |                                 |   |   |   |

**NOTE      G – ALLOWANCE FOR LOAN LOSSES**

|                                                         |   |                                                         |   |   |     |   |
|--------------------------------------------------------------|--------|--------------------------------------------------------------|--------|--------|----------|--------|
|                                                         |   | **For                  the Nine Months Ended September 30,** |   |
|                                                         |   | **2007**                                                     |   |   | **2006** |   |
|                                                         |   |                                                         |   |   |     |   |
|                                                         |   |                                                         |   |   |     |   |
| Balance                  at beginning of period              |   | $                                                            | 7,218  |   |     | $      | 6,382 |   |
| Provision                  for loan losses                   |   |                                                         | 1,040  |   |     |   | 627 |   |
| Charge-offs                                                  |   |                                                         | (654   | )      |     |   | (179 | ) |
| Recoveries                                                   |   |                                                         | 8      |   |     |   | 50 |   |
| Balance                  at end of period                    |   | $                                                            | 7,612  |   |     | $      | 6,880 |   |
|                                                         |   |                                                         |   |   |     |   |   |   |
| Ratios:                                                      |   |                                                         |   |   |     |   |   |   |
| Net                  charge-offs to average loans            |   |                                                         |   |   |     |   |   |   |
|    outstanding                  (annualized)  |   |                                                         | 0.11   | %      |     |   | 0.03 | % |
| Allowance                  for loan losses to non-performing |   |                                                         |   |   |     |   |   |   |
|    loans                  at end of period    |   |                                                         | 755.16 | %      |     |   | 341.78 | % |
| Allowance                  for loan losses to total          |   |                                                         |   |   |     |   |   |   |
|    loans                  at end of period    |   |                                                         | 0.93   | %      |     |   | 0.94 | % |
|                                                         |   |                                                         |   |   |     |   |   |   |

----

*Index*

**NOTE      H – COMMITMENTS**

|                                            |   |                               |    |   |                              |   |
|-------------------------------------------------|--------|------------------------------------|---------|--------|-----------------------------------|--------|
|                                            |   | **September                  30,** |    |   | **December                  31,** |   |
|                                            |   | **2007**                           |    |   | **2006**                          |   |
|                                            |   |                               |    |   |                              |   |
| Unused                  lines of credit         |   | $                                  | 143,268 |   |                              | $      | 135,374 |   |
| Amounts                  due mortgagors         |   |                               | 32,779  |   |                              |   | 34,742 |   |
| Standby                  letters of credit      |   |                               | 1,406   |   |                              |   | 879 |   |
| Commitments                  to originate loans |   |                               | 20,917  |   |                              |   | 42,551 |   |

**NOTE      I – DEPOSITS**

|                                     |   | **September                  30,** |    |   | **December                  31,** |   |
|------------------------------------------|--------|------------------------------------|---------|--------|-----------------------------------|--------|
|                                     |   | **2007**                           |    |   | **2006**                          |   |
|                                     |   |                               |    |   |                              |   |
| Demand                                   |   | $                                  | 104,411 |   |                              | $      | 97,190 |   |
| NOW                                      |   |                               | 36,884  |   |                              |   | 37,523 |   |
| Regular                  savings         |   |                               | 63,361  |   |                              |   | 65,475 |   |
| Money                  market            |   |                               | 169,788 |   |                              |   | 165,984 |   |
| Certificates                  of deposit |   |                               | 348,674 |   |                              |   | 319,514 |   |
|                                     |   | $                                  | 723,118 |   |                              | $      | 685,686 |   |

**NOTE      J – CONTINGENCIES**

----

*Index*

**NOTE      K – SECOND STAGE CONVERSION**

----

*Index*

**ITEM      2. Management’sDiscussion and Analysis of Financial Condition and      Results of Operations**

**Forward-Looking      Statements**

**Comparison      of Financial Condition at September 30, 2007 and      December 31, 2006**

----

*Index*

**Credit      Quality**

***Delinquent      Loans.***

|                                       |   |                                              |   |   |                                  |   |   |       |   |   |       |   |   |       |   |
|--------------------------------------------|--------|---------------------------------------------------|--------|--------|---------------------------------------|--------|--------|------------|--------|--------|------------|--------|--------|------------|--------|
|                                       |   | **Loans                  Delinquent For**         |   |   |                                  |   |   |       |   |
|                                       |   | **60                  - 89 Days**                 |   |   | **90                  Days and Over** |   |   | **Total**  |   |
|                                       |   | **Number**                                        |   |   | **Amount**                            |   |   | **Number** |   |   | **Amount** |   |   | **Number** |   |   | **Amount** |   |
|                                       |   | **(Dollars                  in thousands)**  |   |
| **At                  September 30, 2007** |   |                                              |   |   |                                  |   |   |       |   |   |       |   |   |       |   |   |   |   |
| Residential                  mortgages     |   |                                              | 4      |   |                                  | $      | 510    |       |   |   | 2          |   |   | $          | 119    |   |   |   | 6 |   |   | $ | 629 |   |
| Commercial                  mortgage       |   |                                              | 9      |   |                                  |   | 1,400  |       |   |   | 4          |   |   |       | 435    |   |   |   | 13 |   |   |   | 1,835 |   |
| Construction                               |   |                                              | -      |   |                                  |   | -      |       |   |   | -          |   |   |       | -      |   |   |   | - |   |   |   | - |   |
| Home                  equity               |   |                                              | 4      |   |                                  |   | 346    |       |   |   | 2          |   |   |       | 52     |   |   |   | 6 |   |   |   | 398 |   |
| Commercial                  and industrial |   |                                              | 13     |   |                                  |   | 561    |       |   |   | 4          |   |   |       | 401    |   |   |   | 17 |   |   |   | 962 |   |
| Automobile                                 |   |                                              | 8      |   |                                  |   | 55     |       |   |   | -          |   |   |       | -      |   |   |   | 8 |   |   |   | 55 |   |
| Other                  consumer            |   |                                              | 2      |   |                                  |   | 1      |       |   |   | -          |   |   |       | -      |   |   |   | 2 |   |   |   | 1 |   |
| Total                                      |   |                                              | 40     |   |                                  | $      | 2,873  |       |   |   | 12         |   |   | $          | 1,007  |   |   |   | 52 |   |   | $ | 3,880 |   |
|                                       |   |                                              |   |   |                                  |   |   |       |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |
| **At                  December 31, 2006**  |   |                                              |   |   |                                  |   |   |       |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Residential                  mortgages     |   |                                              | 12     |   |                                  | $      | 1,197  |       |   |   | -          |   |   | $          | -      |   |   |   | 12 |   |   | $ | 1,197 |   |
| Commercial                  mortgage       |   |                                              | 6      |   |                                  |   | 524    |       |   |   | 7          |   |   |       | 1,144  |   |   |   | 13 |   |   |   | 1,668 |   |
| Construction                               |   |                                              | 1      |   |                                  |   | 108    |       |   |   | -          |   |   |       | -      |   |   |   | 1 |   |   |   | 108 |   |
| Home                  equity               |   |                                              | 7      |   |                                  |   | 157    |       |   |   | 1          |   |   |       | 20     |   |   |   | 8 |   |   |   | 177 |   |
| Commercial                  and industrial |   |                                              | 6      |   |                                  |   | 93     |       |   |   | 4          |   |   |       | 123    |   |   |   | 10 |   |   |   | 216 |   |
| Automobile                                 |   |                                              | 13     |   |                                  |   | 85     |       |   |   | -          |   |   |       | -      |   |   |   | 13 |   |   |   | 85 |   |
| Other                  consumer            |   |                                              | -      |   |                                  |   | -      |       |   |   | 1          |   |   |       | 1      |   |   |   | 1 |   |   |   | 1 |   |
| Total                                      |   |                                              | 45     |   |                                  | $      | 2,164  |       |   |   | 13         |   |   | $          | 1,288  |   |   |   | 58 |   |   | $ | 3,452 |   |
|                                       |   |                                              |   |   |                                  |   |   |       |   |   |       |   |   |       |   |   |   |   |   |   |   |   |   |   |

----

*Index*

***Classified      Assets.  ***

|                                                 |   | **At                  September 30,**                 |   |                        | **At                  December 31,** |   |
|------------------------------------------------------|--------|-------------------------------------------------------|--------|-----------------------------|--------------------------------------|--------|
|                                                 |   | **2007**                                              |   |                        | **2006**                             |   |
|                                                 |   | **(In                  thousands)**    |   |
|                                                 |   |                                                  |   |                        |                                 |   |
| **Residential                  Real Estate**(1)**:** |   |                                                  |   |                        |                                 |   |
| Substandard                  assets                  |   | $                                                     | 1,081  |                  (2,3) |                                 | $      | 1,252 |   |
|                                                 |   |                                                  |   |                        |                                 |   |   |   |
| **All                  Other Loans:**                |   |                                                  |   |                        |                                 |   |   |   |
| Special                  mention assets              |   |                                                  | 16,380 |                        |                                 |   | 8,990 |   |
| Substandard                  assets                  |   |                                                  | 12,490 |                        |                                 |   | 10,449 |   |
| Doubtful                  assets                     |   |                                                  | 299    |                        |                                 |   | 1,290 |   |
| Loss                  assets                         |   |                                                  | -      |                        |                                 |   | - |   |
|                                                 |   |                                                  |   |                        |                                 |   |   |   |
| **Foreclosed                  Assets:**              |   |                                                  |   |                        |                                 |   |   |   |
| Other                  real estate owned             |   |                                                  | 880    |                        |                                 |   | 562 |   |
|                                                 |   |                                                  |   |                        |                                 |   |   |   |
| Total                  classified assets             |   | $                                                     | 31,130 |                        |                                 | $      | 22,543 |   |

| _______________________________________                                                                                                          |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1) Includes                  one-to-four family loans and home equity loans and lines of                  credit.      |
| (2) Includes                  eight residential loans, four of which are in foreclosure or liquidation                  proceedings.        |
| (3) Includes                  three commercial lending relationships.                                    |

**Comparison      of Operating Results for the Three Months Ended September      30, 2007 and      2006**

**Overview**

***Net      Income.  ***

----

*Index*

***Average      balances and yields***

|                                                                                  |   | **Three                    Months Ended September 30,**         |      |
|---------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------|-----------|
|                                                                                  |   | **2007**                                                   |      |   | **2006** |   |
|                                                                                  |   |                                                            |      |   | **Interest** |   |   |   |   |   |   |   |   | **Interest** |   |   |   |   |
|                                                                                  |   | **Average**                                                     |      |   | **and** |   |   | **Yield/** |   |   | **Average** |   |   | **and** |   |   | **Yield/** |   |
|                                                                                  |   | **Balance**                                                     |      |   | **Dividends** |   |   | **Cost** |   |   | **Balance** |   |   | **Dividends** |   |   | **Cost** |   |
|                                                                                  |   |    **(Dollars                    in thousands)** |      |
|                                                                                  |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest-earning                    assets:**                                       |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                                                                |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Residential                    real estate                                |   | $                                                               | 346,357   |   |   | $ | 4,910 |   |   |   | 5.67 | % |   | $ | 316,118 |   |   | $ | 4,436 |   |   |   | 5.61 | % |
|   Commercial                    real estate                                 |   |                                                            | 238,013   |   |   |   | 3,963 |   |   |   | 6.66 | % |   |   | 197,146 |   |   |   | 3,312 |   |   |   | 6.72 | % |
|   Home                    equity loans                                      |   |                                                            | 118,604   |   |   |   | 1,966 |   |   |   | 6.63 | % |   |   | 105,329 |   |   |   | 1,740 |   |   |   | 6.61 | % |
|   Commercial                    and industrial                              |   |                                                            | 78,659    |   |   |   | 1,460 |   |   |   | 7.42 | % |   |   | 66,115 |   |   |   | 1,190 |   |   |   | 7.20 | % |
|   Consumer                    and other                                     |   |                                                            | 31,123    |   |   |   | 413 |   |   |   | 5.31 | % |   |   | 30,209 |   |   |   | 365 |   |   |   | 4.83 | % |
|     Total                    loans                                |   |                                                            | 812,756   |   |   |   | 12,712 |   |   |   | 6.26 | % |   |   | 714,917 |   |   |   | 11,043 |   |   |   | 6.18 | % |
| Investment                    securities                                              |   |                                                            | 168,498   |   |   |   | 2,017 |   |   |   | 4.79 | % |   |   | 211,101 |   |   |   | 2,195 |   |   |   | 4.16 | % |
| Other                    interest-earning assets                                      |   |                                                            | 17,082    |   |   |   | 247 |   |   |   | 5.78 | % |   |   | 13,572 |   |   |   | 256 |   |   |   | 7.54 | % |
|     Total                    interest-earning assets              |   |                                                            | 998,336   |   |   |   | 14,976 |   |   |   | 6.00 | % |   |   | 939,590 |   |   |   | 13,494 |   |   |   | 5.74 | % |
| Noninterest-earning                    assets                                         |   |                                                            | 33,889    |   |   |   |   |   |   |   |   |   |   |   | 30,372 |   |   |   |   |   |   |   |   |   |
|     Total                    assets                               |   | $                                                               | 1,032,225 |   |   |   |   |   |   |   |   |   |   | $ | 969,962 |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest-bearing                    liabilities:**                                  |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                    accounts                                                   |   | $                                                               | 62,005    |   |   |   | 139 |   |   |   | 0.90 | % |   | $ | 73,645 |   |   |   | 154 |   |   |   | 0.84 | % |
| Money                    market accounts                                              |   |                                                            | 180,563   |   |   |   | 1,462 |   |   |   | 3.24 | % |   |   | 167,031 |   |   |   | 1,322 |   |   |   | 3.17 | % |
| NOW                    accounts                                                       |   |                                                            | 34,070    |   |   |   | 46 |   |   |   | 0.54 | % |   |   | 36,682 |   |   |   | 24 |   |   |   | 0.26 | % |
| Certificates                    of deposit                                            |   |                                                            | 342,573   |   |   |   | 4,025 |   |   |   | 4.70 | % |   |   | 316,793 |   |   |   | 3,385 |   |   |   | 4.27 | % |
|     Total                    interest-bearing deposits            |   |                                                            | 619,211   |   |   |   | 5,672 |   |   |   | 3.66 | % |   |   | 594,151 |   |   |   | 4,885 |   |   |   | 3.29 | % |
| FHLB                    advances                                                      |   |                                                            | 156,150   |   |   |   | 1,914 |   |   |   | 4.90 | % |   |   | 134,833 |   |   |   | 1,582 |   |   |   | 4.69 | % |
| Other                    interest-bearing liabilities                                 |   |                                                            | 12,434    |   |   |   | 137 |   |   |   | 4.41 | % |   |   | 7,367 |   |   |   | 83 |   |   |   | 4.51 | % |
|     Total                    interest-bearing liabilities         |   |                                                            | 787,795   |   |   |   | 7,723 |   |   |   | 3.92 | % |   |   | 736,351 |   |   |   | 6,550 |   |   |   | 3.56 | % |
| Demand                    deposits                                                    |   |                                                            | 101,119   |   |   |   |   |   |   |   |   |   |   |   | 93,247 |   |   |   |   |   |   |   |   |   |
| Other                    noninterest-bearing liabilities                              |   |                                                            | 3,491     |   |   |   |   |   |   |   |   |   |   |   | 4,085 |   |   |   |   |   |   |   |   |   |
|     Total                    liabilities                          |   |                                                            | 892,405   |   |   |   |   |   |   |   |   |   |   |   | 833,683 |   |   |   |   |   |   |   |   |   |
| Stockholders'                    equity                                               |   |                                                            | 139,820   |   |   |   |   |   |   |   |   |   |   |   | 136,279 |   |   |   |   |   |   |   |   |   |
|     Total                    liabilities and stockholders' equity |   | $                                                               | 1,032,225 |   |   |   |   |   |   |   |   |   |   | $ | 969,962 |   |   |   |   |   |   |   |   |   |
|                                                                                  |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                    interest income                                                |   |                                                            |      |   |   | $ | 7,253 |   |   |   |   |   |   |   |   |   |   | $ | 6,944 |   |   |   |   |   |
| Interest                    rate spread(1)                                            |   |                                                            |      |   |   |   |   |   |   |   | 2.08 | % |   |   |   |   |   |   |   |   |   |   | 2.19 | % |
| Net                    interest-earning assets(2)                                     |   | $                                                               | 210,541   |   |   |   |   |   |   |   |   |   |   | $ | 203,239 |   |   |   |   |   |   |   |   |   |
| Net                    interest margin(3)                                             |   |                                                            |      |   |   |   |   |   |   |   | 2.91 | % |   |   |   |   |   |   |   |   |   |   | 2.96 | % |
| Average                    interest-earning assets to                                 |   |                                                            |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      average                    interest-bearing liabilities |   |                                                            |      |   |   |   |   |   |   |   | 126.73 | % |   |   |   |   |   |   |   |   |   |   | 127.60 | % |

|   | (1) | Net                interest rate spread represents the difference between the yield                on                average interest-earning assets and the cost of average                interest-bearing liabilities. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | Net                interest-earning assets represents total interest-earning assets                less                total interest-bearing liabilities. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Net                interest margin represents net interest income divided by average                total                interest-earning assets. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

***Rate/Volume      Analysis.***

|                                                                              |   |                                                 |   |   |     |   |   |    |   |
|-----------------------------------------------------------------------------------|--------|------------------------------------------------------|--------|--------|----------|--------|--------|---------|--------|
|                                                                              |   | **Three                  months ended September 30** |   |
|                                                                              |   | **2007                  vs. 2006**                   |   |
|                                                                              |   | **Increase                  (Decrease) Due to**      |   |
|                                                                              |   | **Volume**                                           |   |   | **Rate** |   |   | **Net** |   |
|                                                                              |   | **(In                  thousands)**                  |   |
|                                                                              |   |                                                 |   |   |     |   |   |    |   |
| **Interest-earning                  assets:**                                     |   |                                                 |   |   |     |   |   |    |   |
| Loans:                                                                            |   |                                                 |   |   |     |   |   |    |   |
|   Residential                  real estate                              |   | $                                                    | 428    |   |     | $      | 46     |    |   | $ | 474 |   |
|   Commercial                  real estate                               |   |                                                 | 681    |   |     |   | (30    | )       |   |   | 651 |   |
|   Home                  equity loans                                    |   |                                                 | 220    |   |     |   | 6      |    |   |   | 226 |   |
|   Commercial                  and industrial                            |   |                                                 | 232    |   |     |   | 38     |    |   |   | 270 |   |
|   Consumer                  and other                                   |   |                                                 | 11     |   |     |   | 37     |    |   |   | 48 |   |
|      Total                  loans                        |   |                                                 | 1,572  |   |     |   | 97     |    |   |   | 1,669 |   |
| Investment                  securities                                            |   |                                                 | (481   | )      |     |   | 303    |    |   |   | (178 | ) |
| Other                  interest-earning assets                                    |   |                                                 | 58     |   |     |   | (67    | )       |   |   | (9 | ) |
|      Total                  interest-earning assets      |   |                                                 | 1,149  |   |     |   | 333    |    |   |   | 1,482 |   |
|                                                                              |   |                                                 |   |   |     |   |   |    |   |   |   |   |
| **Interest-bearing                  liabilities:**                                |   |                                                 |   |   |     |   |   |    |   |   |   |   |
| Savings                  accounts                                                 |   |                                                 | (25    | )      |     |   | 10     |    |   |   | (15 | ) |
| Money                  market accounts                                            |   |                                                 | 109    |   |     |   | 31     |    |   |   | 140 |   |
| NOW                  accounts                                                     |   |                                                 | (2     | )      |     |   | 24     |    |   |   | 22 |   |
| Certificates                  of deposit                                          |   |                                                 | 287    |   |     |   | 353    |    |   |   | 640 |   |
|      Total                  interest-bearing deposits    |   |                                                 | 369    |   |     |   | 418    |    |   |   | 787 |   |
| FHLB                  advances                                                    |   |                                                 | 259    |   |     |   | 73     |    |   |   | 332 |   |
| Other                  interest-bearing liabilities                               |   |                                                 | 56     |   |     |   | (2     | )       |   |   | 54 |   |
|      Total                  interest-bearing liabilities |   |                                                 | 684    |   |     |   | 489    |    |   |   | 1,173 |   |
|                                                                              |   |                                                 |   |   |     |   |   |    |   |   |   |   |
| Change                  in net interest income                                    |   | $                                                    | 465    |   |     | $      | (156   | )       |   | $ | 309 |   |
|                                                                              |   |                                                 |   |   |     |   |   |    |   |   |   |   |

***Net      Interest Income Before Provision for Loan Losses.  ***

----

*Index*

***Interest      Income.***

***Interest      Expense.  ***

***Provision      for Loan Losses.***

----

*Index*

***Non-interest      Income.***

***Non-interest      Expense.***

***Income      Tax      Expense***
**.**

**Comparison      of Operating Results for the Nine Months Ended September 30, 2007 and      2006**

***Net      Income.  ***

----

*Index*

***Average      balances and yields***

|                                                                                |   | **Nine                  Months Ended September 30,**          |      |
|-------------------------------------------------------------------------------------|--------|---------------------------------------------------------------|-----------|
|                                                                                |   | **2007**                                                      |      |   | **2006** |   |
|                                                                                |   |                                                          |      |   | **Interest** |   |   |   |   |   |   |   |   | **Interest** |   |   |   |   |
|                                                                                |   | **Average**                                                   |      |   | **and** |   |   | **Yield/** |   |   | **Average** |   |   | **and** |   |   | **Yield/** |   |
|                                                                                |   | **Balance**                                                   |      |   | **Dividends** |   |   | **Cost** |   |   | **Balance** |   |   | **Dividends** |   |   | **Cost** |   |
|                                                                                |   |    **(Dollars                  in thousands)** |      |
|                                                                                |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest-earning                  assets:**                                       |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                                                              |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Residential                  real estate                                |   | $                                                             | 341,355   |   |   | $ | 14,465 |   |   |   | 5.65 | % |   | $ | 304,227 |   |   | $ | 12,709 |   |   |   | 5.57 | % |
|   Commercial                  real estate                                 |   |                                                          | 233,394   |   |   |   | 11,564 |   |   |   | 6.61 | % |   |   | 182,813 |   |   |   | 8,974 |   |   |   | 6.55 | % |
|   Home                  equity loans                                      |   |                                                          | 117,498   |   |   |   | 5,777 |   |   |   | 6.56 | % |   |   | 97,117 |   |   |   | 4,678 |   |   |   | 6.42 | % |
|   Commercial                  and industrial                              |   |                                                          | 73,157    |   |   |   | 4,041 |   |   |   | 7.36 | % |   |   | 62,649 |   |   |   | 3,335 |   |   |   | 7.10 | % |
|   Consumer                  and other                                     |   |                                                          | 30,332    |   |   |   | 1,170 |   |   |   | 5.14 | % |   |   | 28,518 |   |   |   | 1,023 |   |   |   | 4.78 | % |
|     Total                  loans                                |   |                                                          | 795,736   |   |   |   | 37,017 |   |   |   | 6.20 | % |   |   | 675,324 |   |   |   | 30,719 |   |   |   | 6.07 | % |
| Investment                  securities                                              |   |                                                          | 171,575   |   |   |   | 5,849 |   |   |   | 4.55 | % |   |   | 219,713 |   |   |   | 6,761 |   |   |   | 4.10 | % |
| Other                  interest-earning assets                                      |   |                                                          | 22,393    |   |   |   | 935 |   |   |   | 5.57 | % |   |   | 19,989 |   |   |   | 786 |   |   |   | 5.24 | % |
|     Total                  interest-earning assets              |   |                                                          | 989,704   |   |   |   | 43,801 |   |   |   | 5.90 | % |   |   | 915,026 |   |   |   | 38,266 |   |   |   | 5.58 | % |
| Noninterest-earning                  assets                                         |   |                                                          | 32,722    |   |   |   |   |   |   |   |   |   |   |   | 30,613 |   |   |   |   |   |   |   |   |   |
|     Total                  assets                               |   | $                                                             | 1,022,426 |   |   |   |   |   |   |   |   |   |   | $ | 945,639 |   |   |   |   |   |   |   |   |   |
|                                                                                |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Interest-bearing                  liabilities:**                                  |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings                  accounts                                                   |   | $                                                             | 64,066    |   |   |   | 427 |   |   |   | 0.89 | % |   | $ | 80,000 |   |   |   | 498 |   |   |   | 0.83 | % |
| Money                  market accounts                                              |   |                                                          | 178,590   |   |   |   | 4,262 |   |   |   | 3.18 | % |   |   | 163,015 |   |   |   | 3,761 |   |   |   | 3.08 | % |
| NOW                  accounts                                                       |   |                                                          | 34,386    |   |   |   | 137 |   |   |   | 0.53 | % |   |   | 35,969 |   |   |   | 69 |   |   |   | 0.26 | % |
| Certificates                  of deposit                                            |   |                                                          | 334,129   |   |   |   | 11,504 |   |   |   | 4.59 | % |   |   | 306,763 |   |   |   | 9,262 |   |   |   | 4.03 | % |
|     Total                  interest-bearing deposits            |   |                                                          | 611,171   |   |   |   | 16,330 |   |   |   | 3.56 | % |   |   | 585,747 |   |   |   | 13,590 |   |   |   | 3.09 | % |
| FHLB                  advances                                                      |   |                                                          | 158,857   |   |   |   | 5,716 |   |   |   | 4.80 | % |   |   | 119,678 |   |   |   | 3,822 |   |   |   | 4.26 | % |
| Other                  interest-bearing liabilities                                 |   |                                                          | 12,020    |   |   |   | 411 |   |   |   | 4.56 | % |   |   | 7,708 |   |   |   | 237 |   |   |   | 4.10 | % |
|     Total                  interest-bearing liabilities         |   |                                                          | 782,048   |   |   |   | 22,457 |   |   |   | 3.83 | % |   |   | 713,133 |   |   |   | 17,649 |   |   |   | 3.30 | % |
| Demand                  deposits                                                    |   |                                                          | 97,946    |   |   |   |   |   |   |   |   |   |   |   | 91,878 |   |   |   |   |   |   |   |   |   |
| Other                  noninterest-bearing liabilities                              |   |                                                          | 3,422     |   |   |   |   |   |   |   |   |   |   |   | 3,404 |   |   |   |   |   |   |   |   |   |
|     Total                  liabilities                          |   |                                                          | 883,416   |   |   |   |   |   |   |   |   |   |   |   | 808,415 |   |   |   |   |   |   |   |   |   |
| Stockholders'                  equity                                               |   |                                                          | 139,010   |   |   |   |   |   |   |   |   |   |   |   | 137,224 |   |   |   |   |   |   |   |   |   |
|     Total                  liabilities and stockholders' equity |   | $                                                             | 1,022,426 |   |   |   |   |   |   |   |   |   |   | $ | 945,639 |   |   |   |   |   |   |   |   |   |
|                                                                                |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net                  interest income                                                |   |                                                          |      |   |   | $ | 21,344 |   |   |   |   |   |   |   |   |   |   | $ | 20,617 |   |   |   |   |   |
| Interest                  rate spread(1)                                            |   |                                                          |      |   |   |   |   |   |   |   | 2.07 | % |   |   |   |   |   |   |   |   |   |   | 2.28 | % |
| Net                  interest-earning assets(2)                                     |   | $                                                             | 207,656   |   |   |   |   |   |   |   |   |   |   | $ | 201,893 |   |   |   |   |   |   |   |   |   |
| Net                  interest margin(3)                                             |   |                                                          |      |   |   |   |   |   |   |   | 2.88 | % |   |   |   |   |   |   |   |   |   |   | 3.00 | % |
| Average                  interest-bearing assets to                                 |   |                                                          |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      average                  interest-bearing liabilities |   |                                                          |      |   |   |   |   |   |   |   | 126.55 | % |   |   |   |   |   |   |   |   |   |   | 128.31 | % |

| (1) | Net                interest rate spread represents the difference between the yield                on                average interest-earning assets and the cost of average interest-bearing                liabilities. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2) | Net                interest-earning assets represents total interest-earning assets                less                total interest-bearing liabilities. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3) | Net                interest margin represents net interest income divided by average                total                interest-earning assets. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------|

----

*Index*

***Rate/Volume      Analysis***

|                                                                              |   | **Nine                  months ended September 30** |   |
|-----------------------------------------------------------------------------------|--------|-----------------------------------------------------|--------|
|                                                                              |   | **2007                  vs. 2006**                  |   |
|                                                                              |   | **Increase                  (Decrease) Due to**     |   |
|                                                                              |   | **Volume**                                          |   |   | **Rate** |   |   | **Net** |   |
|                                                                              |   | **(In                  thousands)**                 |   |
|                                                                              |   |                                                |   |   |   |   |   |   |   |
| **Interest-earning                  assets:**                                     |   |                                                |   |   |   |   |   |   |   |
| Loans:                                                                            |   |                                                |   |   |   |   |   |   |   |
|   Residential                  real estate                              |   | $                                                   | 1,571  |   |   | $ | 185 |   |   | $ | 1,756 |   |
|   Commercial                  real estate                               |   |                                                | 2,505  |   |   |   | 85 |   |   |   | 2,590 |   |
|   Home                  equity loans                                    |   |                                                | 1,000  |   |   |   | 99 |   |   |   | 1,099 |   |
|   Commercial                  and industrial                            |   |                                                | 576    |   |   |   | 130 |   |   |   | 706 |   |
|   Consumer                  and other                                   |   |                                                | 67     |   |   |   | 80 |   |   |   | 147 |   |
|      Total                  loans                        |   |                                                | 5,719  |   |   |   | 579 |   |   |   | 6,298 |   |
| Investment                  securities                                            |   |                                                | (1,588 | ) |   |   | 676 |   |   |   | (912 | ) |
| Other                  interest-earning assets                                    |   |                                                | 99     |   |   |   | 50 |   |   |   | 149 |   |
|      Total                  interest-earning assets      |   |                                                | 4,230  |   |   |   | 1,305 |   |   |   | 5,535 |   |
|                                                                              |   |                                                |   |   |   |   |   |   |   |   |   |   |
| **Interest-bearing                  liabilities:**                                |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Savings                  accounts                                                 |   |                                                | (104   | ) |   |   | 33 |   |   |   | (71 | ) |
| Money                  market accounts                                            |   |                                                | 368    |   |   |   | 133 |   |   |   | 501 |   |
| NOW                  accounts                                                     |   |                                                | (3     | ) |   |   | 71 |   |   |   | 68 |   |
| Certificates                  of deposit                                          |   |                                                | 871    |   |   |   | 1,371 |   |   |   | 2,242 |   |
|      Total                  interest-bearing deposits    |   |                                                | 1,132  |   |   |   | 1,608 |   |   |   | 2,740 |   |
| FHLB                  advances                                                    |   |                                                | 1,366  |   |   |   | 528 |   |   |   | 1,894 |   |
| Other                  interest-bearing liabilities                               |   |                                                | 146    |   |   |   | 28 |   |   |   | 174 |   |
|      Total                  interest-bearing liabilities |   |                                                | 2,644  |   |   |   | 2,164 |   |   |   | 4,808 |   |
|                                                                              |   |                                                |   |   |   |   |   |   |   |   |   |   |
| Change                  in net interest income                                    |   | $                                                   | 1,586  |   |   | $ | (859 | ) |   | $ | 727 |   |
|                                                                              |   |                                                |   |   |   |   |   |   |   |   |   |   |

***Net      Interest Income Before Provision for Loan Losses.  ***

----

*Index*

***Interest      Income.***

***Interest      Expense.  ***

***Provision      for Loan Losses.***

***Non-interest      Income.***

----

*Index*

***Non-interest      Expense.***

***Income      Tax Expense***
**.**

----

*Index*

**Market      Risk, Liquidity and Capital Resources**

***Market      Risk***

| **Net                  Interest Income At-Risk**     |
|--------------------------------------------------------------------------|
|                                                                     |   |   |   |   |
|                                                                     |   | **Estimated                  Increase** |   | **Estimated                  Increase** |
| **Change                  in Interest Rates**                            |   | **(Decrease)                  in NII** |   | **(Decrease)                  in NII** |
| (Basis                  Points)                                          |   | (September                  30, 2007) |   | (December                  31, 2006) |
| -200                                                                     |   | 7.4% |   | 12.1% |
| Stable                                                                   |   | 0.0% |   | 0.0% |
| +200                                                                     |   | (9.7)% |   | (10.9)% |

----

*Index*

***Net      Portfolio Value Simulation      Analysis***
**.**

|                                                                                                           |   |                                            | **September                    30, 2007**  |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|-------------------------------------------------|
|                                                                                                           |   |                                            |                                            |   |   |   |   |   | **NPV                    as a Percentage of Present****Value                    of Assets (3)**  |
|                                                                                                           |   |                                            |                                            |   |   | **Estimated                    Increase (Decrease) in****NPV**  |   |   |   |
| **Change                  in****Interest                  Rates****(basis                  points) (1)**  |   | **Estimated****NPV                  (2)**  |                                            | **Amount**  |   | **Percent**  |   | **NPV                    Ratio (4)**  |   | **Increase****(Decrease)****(basis                    points)**  |
|                                                                                                           |   |                                            | **(Dollars                  in thousands)**     |   |   |   |   |   |   |
|                                                                                                           | +300   |                                            |                                            | $ | 69,017 |   |   | $ | (65,234 | ) |   |   | (49 | )% |   |   | 7.35 | % |   |   | (563 | ) |
|                                                                                                           | +200   |                                            |                                            |   | 91,267 |   |   |   | (42,984 | ) |   |   | (32 | ) |   |   | 9.42 |   |   |   | (357 | ) |
|                                                                                                           | +100   |                                            |                                            |   | 113,352 |   |   |   | (20,899 | ) |   |   | (16 | ) |   |   | 11.32 |   |   |   | (167 | ) |
|                                                                                                           | 0      |                                            |                                            |   | 134,251 |   |   |   | — |   |   |   | — |   |   |   | 12.99 |   |   |   | — |   |
|                                                                                                           | -100   |                                            |                                            |   | 149,946 |   |   |   | 15,695 |   |   |   | 12 |   |   |   | 14.12 |   |   |   | 113 |   |
|                                                                                                           | -200   |                                            |                                            |   | 159,694 |   |   |   | 25,443 |   |   |   | 19 |   |   |   | 14.72 |   |   |   | 174 |   |
|                                                                                                           |   |                                            |                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | (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. |
|--------|-----|------------------------------------------------------------------------------------------------|

----

*Index*

|                                                                                                           |   |                                            | **December                    31, 2006**  |
|----------------------------------------------------------------------------------------------------------------|--------|-------------------------------------------------|------------------------------------------------|
|                                                                                                           |   |                                            |                                           |   |   |   |   |   | **NPV                    as a Percentage of Present****Value                    of Assets (3)**  |
|                                                                                                           |   |                                            |                                           |   |   | **Estimated                    Increase (Decrease) in****NPV**  |   |   |   |
| **Change                  in****Interest                  Rates****(basis                  points) (1)**  |   | **Estimated****NPV                  (2)**  |                                           | **Amount**  |   | **Percent**  |   | **NPV                    Ratio (4)**  |   | **Increase****(Decrease)****(basis                    points)**  |
|                                                                                                           |   |                                            | **(Dollars                  in thousands)**    |   |   |   |   |   |   |
|                                                                                                           |   |                                            |                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                           | +300   |                                            |                                           | $ | 71,274 |   |   | $ | (48,844 | ) |   |   | (41 | )% |   |   | 7.61 | % |   |   | (444 | ) |
|                                                                                                           | +200   |                                            |                                           |   | 88,681 |   |   |   | (31,438 | ) |   |   | (26 | ) |   |   | 9.26 |   |   |   | (279 | ) |
|                                                                                                           | +100   |                                            |                                           |   | 104,940 |   |   |   | (15,178 | ) |   |   | (13 | ) |   |   | 10.74 |   |   |   | (132 | ) |
|                                                                                                           | 0      |                                            |                                           |   | 120,118 |   |   |   | — |   |   |   | — |   |   |   | 12.05 |   |   |   | — |   |
|                                                                                                           | -100   |                                            |                                           |   | 131,068 |   |   |   | 10,950 |   |   |   | 9 |   |   |   | 12.95 |   |   |   | 89 |   |
|                                                                                                           | -200   |                                            |                                           |   | 135,979 |   |   |   | 15,861 |   |   |   | 13 |   |   |   | 13.29 |   |   |   | 124 |   |

|   | ________________________________  |
|--------|----------------------------------------|

|   | (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. |
|--------|-----|------------------------------------------------------------------------------------------------|

***Liquidity***

----

*Index*

***Off-Balance      Sheet Arrangements and Aggregate Contractual      Obligations***

**Commitments**

----

*Index*

**Contractual      Obligations**

|                                             |   | **Payments                  Due by Period** |    |
|--------------------------------------------------|--------|---------------------------------------------|---------|
|                                             |   | **Less                  Than**              |    |   | **One                  to Three** |   |   | **Three                  to Five** |   |   | **More                  than** |   |   |   |   |
|                                             |   | **One                  Year**               |    |   | **Years** |   |   | **Years** |   |   | **Five                  Years** |   |   | **Total** |   |
| **Contractual                  Obligations:**    |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificates                  of deposit         |   | $                                           | 310,260 |   |   | $ | 33,417 |   |   | $ | 4,997 |   |   | $ | - |   |   | $ | 348,674 |   |
| Federal                  Home Loan Bank advances |   |                                        | 97,000  |   |   |   | 44,957 |   |   |   | 26,386 |   |   |   | 15,509 |   |   |   | 183,852 |   |
| Repurchase                  agreements           |   |                                        | 7,519   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 7,519 |   |
| Standby                  letters of credit       |   |                                        | 1,406   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,406 |   |
| Operating                  leases                |   |                                        | 534     |   |   |   | 1,150 |   |   |   | 836 |   |   |   | 4,591 |   |   |   | 7,111 |   |
| Capitalized                  lease               |   |                                        | 146     |   |   |   | 292 |   |   |   | 292 |   |   |   | 2,688 |   |   |   | 3,418 |   |
| Total                                            |   | $                                           | 416,865 |   |   | $ | 79,816 |   |   | $ | 32,511 |   |   | $ | 22,788 |   |   | $ | 551,980 |   |
| Commitments                  to extend credit    |   | $                                           | 198,370 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 198,370 |   |
|                                             |   |                                        |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

***Capital      Resources***

|                                                               |   |   |   |
|--------------------------------------------------------------------|--------|--------|--------|
| **As                  of September 30, 2007:**                     |   |   |   |
|                                                               |   |   |   |
|     Total                  risk-based capital  |   |   | 15.37  | % |
|                                                               |   |   |   |   |
|     Tier                  1 risk-based capital |   |   | 14.37  | % |
|                                                               |   |   |   |   |
|     Tier                  1 leverage capital   |   |   | 10.48  | % |
|                                                               |   |   |   |   |
| **As                  of December 31, 2006:**                      |   |   |   |   |
|                                                               |   |   |   |   |
|     Total                  risk-based capital  |   |   | 15.86  | % |
|                                                               |   |   |   |   |
|     Tier                  1 risk-based capital |   |   | 14.83  | % |
|                                                               |   |   |   |   |
|     Tier                  1 leverage capital . |   |   | 10.57  | % |
|                                                               |   |   |   |   |

----

*Index*

**ITEM      3.  Quantitative and Qualitative Disclosures About      Market Risk**

**ITEM      4.  Controls and Procedures**

**PART      II.  OTHER INFORMATION**

**ITEM      1.    Legal      Proceedings**

**ITEM      1A.  Risk Factors**

----

*Index*

**ITEM      2.**
**  Unregistered      Sales of Equity Securities and Use of      Proceeds**

|                                    |   |                          |   |   |                           |   |   | (c)                                |   |   | (d)                                     |   |
|-----------------------------------------|--------|-------------------------------|--------|--------|--------------------------------|--------|--------|------------------------------------|--------|--------|-----------------------------------------|--------|
|                                    |   |                          |   |   |                           |   |   | Total                  Number of   |   |   | Maximum                  Number         |   |
|                                    |   |                          |   |   |                           |   |   | Shares                             |   |   | (or                  Approximate        |   |
|                                    |   | (a)                           |   |   | (b)                            |   |   | (or                  Units)        |   |   | Dollar                  Value) of       |   |
|                                    |   | Total                  Number |   |   | Average                  Price |   |   | Purchased                  as Part |   |   | Shares                  (or Units) that |   |
|                                    |   | of                  Shares    |   |   | Paid                  Per      |   |   | of                  Publicly       |   |   | May                  Yet Be             |   |
|                                    |   | (or                  Units)   |   |   | Share                          |   |   | Announced                  Plans   |   |   | Purchased                  Under the    |   |
| Period                                  |   | Purchased                     |   |   | (or                  Unit)     |   |   | or                  Programs       |   |   | Plans                  or Programs      |   |
|                                    |   |                          |   |   |                           |   |   |                               |   |   |                                    |   |
| July                  1 - 31, 2007      |   |                          | -      |   |                           | $      | -      |                               |   |   | -                                       |   |   |   | 773,358 |   |
|                                    |   |                          |   |   |                           |   |   |                               |   |   |                                    |   |   |   |   |   |
| August                  1 - 31, 2007    |   |                          | 3,693  |   |                           |   | 11.05  |                               |   |   | -                                       |   |   |   | 773,358 |   |
|                                    |   |                          |   |   |                           |   |   |                               |   |   |                                    |   |   |   |   |   |
| September                  1 - 30, 2007 |   |                          | -      |   |                           |   | -      |                               |   |   | -                                       |   |   |   | 773,358 |   |
|                                    |   |                          |   |   |                           |   |   |                               |   |   |                                    |   |   |   |   |   |
|     Total           |   |                          | 3,693  |   |                           | $      | 11.05  |                               |   |   | -                                       |   |   | N/A |   |

**ITEM      3.  Defaults Upon Senior      Securities**

**ITEM      4.  Submission of Matters to a Vote of Security      Holders**

**ITEM      5.  Other Information**

----

*Index*

**ITEM      6.  Exhibits.**

| 3.1    | Charter                of United Financial Bancorp, Inc., as amended (1)                                                                                                                                                                                                 |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2    | Resolution                and Consent of Sole Stockholder Amending the Charter of United Financial                Bancorp, Inc. (1)                                                                                                                                      |
| 3.3    | Bylaws                of United Financial Bancorp, Inc. (3)                                                                                                                                                                                                              |
| 4      | Form                of Common Stock Certificate of United Financial Bancorp, Inc.                (1)                                                                                                                                                                     |
| 10.1   | Form                of Employee Stock Ownership Plan (1)                                                                                                                                                                                                                 |
| 10.2   | Executive                Supplemental Compensation Agreement by and between United Bank and                Richard                B. Collins (1)                                                                                                                         |
| 10.3   | Executive                Supplemental Compensation Agreement by and between United Bank and                Keith                E. Harvey (1)                                                                                                                            |
| 10.4   | Executive                Supplemental Compensation Agreement by and between United Bank and                John J.                Patterson (1)                                                                                                                          |
| 10.5   | United                Bank 2004 and 2005 Incentive Plans (1)                                                                                                                                                                                                             |
| 10.9   | Directors                Fee Continuation Plan (1)                                                                                                                                                                                                                       |
| 10.10  | Form                of Employment Agreement by and between United Bank and Richard B.                Collins                (1)                                                                                                                                          |
| 10.11  | Form                of Change in Control Agreement by and between United Bank and certain                executive officers (1)                                                                                                                                          |
| 10.12  | United                Bank 2006 Stock-Based Incentive Plan (2)                                                                                                                                                                                                           |
| 11     | Statement                Regarding Computation of Per Share Earnings (refer to Note D of Part                I,                                                                                                                                                          |
|   | Item                1- Consolidated Financial Statements)                                                                                                                                                                                                                |
| 21     | Subsidiaries                of Registrant (1)                                                                                                                                                                                                                            |
| 31.1   | Certification                of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                                                                                         |
| 31.2   | Certification                of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley                Act of 2002                                                                                                                                         |
| 32.1   | Certification                of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002                                                                                                                                         |
| 32.2   | Certification                of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley                Act of 2002                                                                                                                                         |
|   |                                                                                                                                                                                                                                                                     |
|   |                                                                                                                                                                                                                                                                     |
| (1)    | Incorporated                by reference to the Registration Statement on Form S-1 of United                Financial                Bancorp, Inc. (file no. 333-123371), originally filed with the Securities                and Exchange Commission on March 16, 2005. |
| (2)    | Incorporated                by reference to Appendix B of the Registrant’s definitive Proxy Statement                for the Company’s 2006 Annual Meeting filed with the Securities and                Exchange Commission on June 12, 2006.                |
| (3)    | Incorporated                by reference to the Registrant’s Form 10-Q filed with the Securities and                Exchange Commission on May 9,                2007.                                                                                             |

----

*Index*

**SIGNATURES**

|                                                 | **United                Financial Bancorp, Inc.** |
|------------------------------------------------------|---------------------------------------------------|
|                                                 |                                              |   |
|                                                 |                                              |   |
| Date:                November 8,                2007 | By:                                               | /s/                Richard B. Collins |
|                                                 |                                              | Richard                B. Collins |
|                                                 |                                              | Chairman,                President and Chief Executive Officer |
|                                                 |                                              |   |
|                                                 |                                              |   |
| Date:                November 8,                2007 | By:                                               | /s/                Mark A. Roberts |
|                                                 |                                              | Mark                A. Roberts |
|                                                 |                                              | Executive                Vice President and Chief Financial                Officer |