| ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|------------------------------------------------------------------------------------------|

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES AND EXCHANGE ACT OF 1934 |
|---|----------------------------------------------------------------------------------------------|

| UNITED STATES                                    |   | 65-1233977                           |
|--------------------------------------------------|--------|--------------------------------------|
| (State or other jurisdiction of incorporation or |   | (I.R.S. Employer Identification No.) |
| organization)                                    |   |                                 |
|                                             |   |                                 |
| 333 CHURCH STREET, NAUGATUCK, CONNECTICUT        |   | 06770                                |
| (Address of principal executive offices)         |   | (Zip Code)                           |
|                                             |   |                                 |

|   | Large Accelerated Filer   ̈     | Accelerated Filer   ̈         |
|--------|-----------------------------------------------|---------------------------------------------|
|   | Non-accelerated Filer   ̈       | Smaller Reporting Company  ý |
|   | (Do not check if a smaller reporting company) |                                        |

----

T

| Part I.    | Financial Information | Page No.                                                                                    |
|------------|-----------------------|---------------------------------------------------------------------------------------------|
|       |                  |                                                                                        |   |
|       | Item 1.               | Financial Statements (Unaudited)                                                            |   |
|       |                  |                                                                                        |   |
|       |                  | Consolidated Statements of Financial Condition at June 30, 2009 and December 31, 2008       | 3 |
|       |                  |                                                                                        |   |
|       |                  | Consolidated Statements of Income for the three and six months ended June 30, 2009 and 2008 | 4 |
|       |                  |                                                                                        |   |
|       |                  | Consolidated Statements of Cash Flows for the six months ended June 30, 2009 and 2008       | 5 |
|       |                  |                                                                                        |   |
|       |                  | Notes to Unaudited Consolidated Financial Statements                                        | 6 |
|       |                  |                                                                                        |   |
|       | Item 2.               | Management’s Discussion and Analysis of Financial Condition and Results of Operations | 15 |
|       |                  |                                                                                        |   |
|       |                  | Liquidity and Capital Resources                                                             | 20 |
|       |                  |                                                                                        |   |
|       | Item 3.               | Quantitative and Qualitative Disclosures About Market Risk                                  | 22 |
|       |                  |                                                                                        |   |
|       | Item 4.               | Controls and Procedures                                                                     | 23 |
|       |                  |                                                                                        |   |
|       |                  |                                                                                        |   |
| Part II.   | Other Information     |                                                                                        |
|       |                  |                                                                                        |   |
|       | Item 1.               | Legal Proceedings                                                                           | 24 |
|       |                  |                                                                                        |   |
|       | Item 1A.              | Risk Factors                                                                                | 24 |
|       |                  |                                                                                        |   |
|       | Item 2.               | Unregistered Sales of Equity Securities and Use of Proceeds                                 | 24 |
|       |                  |                                                                                        |   |
|       | Item 3.               | Defaults Upon Senior Securities                                                             | 24 |
|       |                  |                                                                                        |   |
|       | Item 4.               | Submission of Matters to a Vote of Security Holders                                         | 24 |
|       |                  |                                                                                        |   |
|       | Item 5.               | Other Information                                                                           | 24 |
|       |                  |                                                                                        |   |
|       | Item 6.               | Exhibits                                                                                    | 25 |
|       |                  |                                                                                        |   |
| Signatures |                  |                                                                                        |
|       |                  |                                                                                        |   |
| Exhibits   |                  |                                                                                        |

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t

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n

|                                                           |   | June 30,    |    |   | December 31, |    |
|----------------------------------------------------------------|--------|-------------|---------|--------|--------------|---------|
|                                                           |   | 2009        |    |   | 2008         |    |
|                                                           |   | (Unaudited) |    |
| ASSETS                                                         |   |        |    |   |         |    |
| Cash and due from depository institutions                      |   | $           | 8,161   |   |         | $       | 8,214 |   |
| Investment in federal funds                                    |   |        | 270     |   |         |    | 33 |   |
| Investment securities available-for-sale, at fair value        |   |        | 49,892  |   |         |    | 63,844 |   |
| Investment securities held-to-maturity, at amortized cost      |   |        | 1,538   |   |         |    | - |   |
| Loans receivable, net                                          |   |        | 446,336 |   |         |    | 431,976 |   |
| Accrued income receivable                                      |   |        | 1,959   |   |         |    | 2,099 |   |
| Premises and equipment, net                                    |   |        | 10,210  |   |         |    | 10,565 |   |
| Bank owned life insurance                                      |   |        | 8,750   |   |         |    | 8,579 |   |
| Federal Home Loan Bank stock, at cost                          |   |        | 6,252   |   |         |    | 6,252 |   |
| Other assets                                                   |   |        | 3,850   |   |         |    | 3,824 |   |
|                                                           |   |        |    |   |         |    |   |   |
| Total assets                                                   |   | $           | 537,218 |   |         | $       | 535,386 |   |
|                                                           |   |        |    |   |         |    |   |   |
|                                                           |   |        |    |   |         |    |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                           |   |        |    |   |         |    |   |   |
| Liabilities                                                    |   |        |    |   |         |    |   |   |
| Deposits                                                       |   | $           | 373,705 |   |         | $       | 363,026 |   |
| Borrowed funds                                                 |   |        | 108,298 |   |         |    | 119,148 |   |
| Mortgagors' escrow accounts                                    |   |        | 4,887   |   |         |    | 4,562 |   |
| Other liabilities                                              |   |        | 2,436   |   |         |    | 3,061 |   |
|                                                           |   |        |    |   |         |    |   |   |
| Total liabilities                                              |   |        | 489,326 |   |         |    | 489,797 |   |
|                                                           |   |        |    |   |         |    |   |   |
| Commitments and contingencies                                  |   |        |    |   |         |    |   |   |
|                                                           |   |        |    |   |         |    |   |   |
| Stockholders' equity                                           |   |        |    |   |         |    |   |   |
| Preferred stock, $.01 par value; 1,000,000 shares authorized;  |   |        |    |   |         |    |   |   |
| no shares issued or outstanding                                |   |        |    |   |         |    |   |   |
| Common stock, $.01 par value; 25,000,000 shares authorized;    |   |        | -       |   |         |    | - |   |
| 7,604,375 shares issued, 7,026,813 shares outstanding at June  |   |        |    |   |         |    |   |   |
| 30, 2009 and 7,026,894 shares outstanding at December 31, 2008 |   |        | 76      |   |         |    | 76 |   |
| Paid-in capital                                                |   |        | 33,746  |   |         |    | 33,637 |   |
| Retained earnings                                              |   |        | 23,621  |   |         |    | 23,303 |   |
| Unearned ESOP shares (213,624 shares at June 30, 2009          |   |        |    |   |         |    |   |   |
| and December 31, 2008)                                         |   |        | (2,136  | )      |         |    | (2,136 | ) |
| Unearned stock awards (61,080 shares at June 30, 2009          |   |        |    |   |         |    |   |   |
| and 61,780 shares at December 31, 2008)                        |   |        | (672    | )      |         |    | (680 | ) |
| Treasury stock, at cost (579,395 shares at June 30, 2009       |   |        |    |   |         |    |   |   |
| and 579,314 shares at December 31, 2008)                       |   |        | (6,108  | )      |         |    | (6,107 | ) |
| Accumulated other comprehensive loss                           |   |        | (635    | )      |         |    | (2,504 | ) |
|                                                           |   |        |    |   |         |    |   |   |
| Total stockholders' equity                                     |   |        | 47,892  |   |         |    | 45,589 |   |
|                                                           |   |        |    |   |         |    |   |   |
| Total liabilities and stockholders' equity                     |   | $           | 537,218 |   | $            | 535,386 |   |

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t

|                                                |   | Three Months Ended |   |   | Six Months Ended |   |
|-----------------------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                                                |   | June 30,           |   |   | June 30,         |   |
|                                                |   | 2009               |   | 2008   |             |   | 2009 |   | 2008 |   |
|                                                |   | (Unaudited)        |   |
| Interest income                                     |   |               |   |   |             |   |   |   |   |   |   |   |
| Interest on loans                                   |   | $                  | 6,387  |   |             | $      | 5,958 |   |   | $ | 12,765 |   |   | $ | 11,876 |   |
| Interest and dividends on investments and deposits  |   |               | 620    |   |             |   | 919 |   |   |   | 1,330 |   |   |   | 1,848 |   |
| Total interest income                               |   |               | 7,007  |   |             |   | 6,877 |   |   |   | 14,095 |   |   |   | 13,724 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense                                    |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Interest on deposits                                |   |               | 2,164  |   |             |   | 2,165 |   |   |   | 4,464 |   |   |   | 4,646 |   |
| Interest on borrowed funds                          |   |               | 1,102  |   |             |   | 1,178 |   |   |   | 2,217 |   |   |   | 2,243 |   |
| Total interest expense                              |   |               | 3,266  |   |             |   | 3,343 |   |   |   | 6,681 |   |   |   | 6,889 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                 |   |               | 3,741  |   |             |   | 3,534 |   |   |   | 7,414 |   |   |   | 6,835 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Provision for loan losses                           |   |               | 272    |   |             |   | 113 |   |   |   | 557 |   |   |   | 275 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income after provision for loan losses |   |               | 3,469  |   |             |   | 3,421 |   |   |   | 6,857 |   |   |   | 6,560 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest income                                  |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Fees for services related to deposit accounts       |   |               | 258    |   |             |   | 273 |   |   |   | 493 |   |   |   | 517 |   |
| Fees for other services                             |   |               | 174    |   |             |   | 132 |   |   |   | 299 |   |   |   | 249 |   |
| Income from investment advisory services, net       |   |               | 101    |   |             |   | 92 |   |   |   | 158 |   |   |   | 174 |   |
| Income from bank owned life insurance               |   |               | 87     |   |             |   | 78 |   |   |   | 171 |   |   |   | 153 |   |
| Gain on investments                                 |   |               | -      |   |             |   | 46 |   |   |   | 176 |   |   |   | 105 |   |
| Other income                                        |   |               | 25     |   |             |   | 40 |   |   |   | 56 |   |   |   | 89 |   |
| Total noninterest income                            |   |               | 645    |   |             |   | 661 |   |   |   | 1,353 |   |   |   | 1,287 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest expense                                 |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Compensation, taxes and benefits                    |   |               | 1,943  |   |             |   | 1,837 |   |   |   | 3,827 |   |   |   | 3,684 |   |
| Office occupancy                                    |   |               | 559    |   |             |   | 554 |   |   |   | 1,093 |   |   |   | 1,078 |   |
| FDIC insurance premiums                             |   |               | 389    |   |             |   | 13 |   |   |   | 625 |   |   |   | 22 |   |
| Computer processing                                 |   |               | 248    |   |             |   | 203 |   |   |   | 470 |   |   |   | 398 |   |
| Advertising                                         |   |               | 130    |   |             |   | 118 |   |   |   | 185 |   |   |   | 199 |   |
| Directors compensation                              |   |               | 118    |   |             |   | 142 |   |   |   | 317 |   |   |   | 287 |   |
| Loss on foreclosed real estate, net                 |   |               | 2      |   |             |   | - |   |   |   | 9 |   |   |   | 3 |   |
| Other expenses                                      |   |               | 407    |   |             |   | 390 |   |   |   | 870 |   |   |   | 793 |   |
| Total noninterest expense                           |   |               | 3,796  |   |             |   | 3,257 |   |   |   | 7,396 |   |   |   | 6,464 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Income before provision                             |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| for income taxes                                    |   |               | 318    |   |             |   | 825 |   |   |   | 814 |   |   |   | 1,383 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Provision for income taxes                          |   |               | 79     |   |             |   | 223 |   |   |   | 206 |   |   |   | 328 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                          |   | $                  | 239    |   |             | $      | 602 |   |   | $ | 608 |   |   | $ | 1,055 |   |
|                                                |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per common share - Basic and Diluted       |   | $                  | 0.04   |   |             | $      | 0.09 |   |   | $ | 0.09 |   |   | $ | 0.15 |   |

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|                                                                          |   | Six Months Ended |    |
|-------------------------------------------------------------------------------|--------|------------------|---------|
|                                                                          |   | June 30,         |    |
|                                                                          |   | 2009             |    | 2008 |   |
| Cash flows from operating activities                                          |   | (Unaudited)      |    |
| Net income                                                                    |   | $                | 608     |   |   | $ | 1,055 |   |
| Adjustments to reconcile net income to cash provided by operating activities: |   |             |    |   |   |   |   |   |
| Provision for loan losses                                                     |   |             | 557     |   |   |   | 275 |   |
| Depreciation and amortization expense                                         |   |             | 426     |   |   |   | 405 |   |
| Net amortization from investments                                             |   |             | 35      |   |   |   | 36 |   |
| Amortization of intangible assets                                             |   |             | 17      |   |   |   | 17 |   |
| Stock-based compensation                                                      |   |             | 332     |   |   |   | 346 |   |
| Gain on sale of investments                                                   |   |             | (176    | ) |   |   | (106 | ) |
| Net change in:                                                                |   |             |    |   |   |   |   |   |
| Accrued income receivable                                                     |   |             | 140     |   |   |   | 41 |   |
| Deferred loan fees                                                            |   |             | (18     | ) |   |   | 64 |   |
| Cash surrender value of life insurance                                        |   |             | (171    | ) |   |   | (153 | ) |
| Other assets                                                                  |   |             | 76      |   |   |   | (144 | ) |
| Other liabilities                                                             |   |             | 501     |   |   |   | (56 | ) |
| Net cash provided by operating activities                                     |   |             | 2,327   |   |   |   | 1,780 |   |
| Cash flows from investing activities                                          |   |             |    |   |   |   |   |   |
| Proceeds from maturities and repayments of available-for-sale securities      |   |             | 5,489   |   |   |   | 5,077 |   |
| Proceeds from sale of available-for-sale securities                           |   |             | 10,508  |   |   |   | 12,631 |   |
| Proceeds from maturities of held-to-maturity securities                       |   |             | 27      |   |   |   | 190 |   |
| Purchase of held-to-maturity securities                                       |   |             | (1,566  | ) |   |   | - |   |
| Purchase of available-for-sale securities                                     |   |             | -       |   |   |   | (23,082 | ) |
| Purchase of Federal Home Loan Bank stock                                      |   |             | -       |   |   |   | (1,333 | ) |
| Loan originations net of principal payments                                   |   |             | (15,053 | ) |   |   | (36,510 | ) |
| Purchase of property and equipment                                            |   |             | (72     | ) |   |   | (532 | ) |
| Net cash used by investing activities                                         |   |             | (667    | ) |   |   | (43,559 | ) |
| Cash flows from financing activities                                          |   |             |    |   |   |   |   |   |
| Net change in time deposits                                                   |   |             | 2,442   |   |   |   | 9,026 |   |
| Net change in other deposit accounts                                          |   |             | 8,237   |   |   |   | 6,502 |   |
| Net change in mortgagors' escrow deposits                                     |   |             | 325     |   |   |   | 383 |   |
| Advances from Federal Home Loan Bank                                          |   |             | -       |   |   |   | 38,465 |   |
| Repayment of advances from Federal Home Loan Bank                             |   |             | (17,613 | ) |   |   | (10,903 | ) |
| Change in short term borrowings                                               |   |             | (1,340  | ) |   |   | - |   |
| Net change in repurchase agreements                                           |   |             | 6,762   |   |   |   | 536 |   |
| Treasury stock acquired                                                       |   |             | -       |   |   |   | (2,083 | ) |
| Dividends paid to stockholders                                                |   |             | (289    | ) |   |   | (300 | ) |
| Net cash (used) provided by financing activities                              |   |             | (1,476  | ) |   |   | 41,626 |   |
| Net change in cash and cash equivalents                                       |   |             | 184     |   |   |   | (153 | ) |
| Cash and cash equivalents at beginning of period                              |   |             | 8,247   |   |   |   | 8,370 |   |
| Cash and cash equivalents at end of period                                    |   | $                | 8,431   |   |   | $ | 8,217 |   |
| Cash paid during the period for:                                              |   |             |    |   |   |   |   |   |
| Interest                                                                      |   | $                | 6,335   |   |   | $ | 6,927 |   |
| Income taxes                                                                  |   |             | 226     |   |   |   | 508 |   |
| Non-cash transactions:                                                        |   |             |    |   |   |   |   |   |
| Transfer of loans to foreclosed real estate                                   |   | $                | 223     |   |   | $ | - |   |

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|                                    |   | Amortized  |   |   | Gross Unrealized |   |   | Fair   |   |
|-----------------------------------------|--------|------------|--------|--------|------------------|--------|--------|--------|--------|
| (In thousands)                          |   | Cost Basis |   |   | Gains            |   |   | Losses |   |   | Value |   |
| Available-for-sale securities:          |   |       |   |   |             |   |   |   |   |   |   |   |
| U.S. government and agency obligations  |   | $          | 1,533  |   |             | $      | 36     |   |   | $ | - |   |   | $ | 1,569 |   |
| Corporate bonds                         |   |       | 1,000  |   |             |   | -      |   |   |   | (670 | ) |   |   | 330 |   |
| Mortgage-backed securities              |   |       | 35,442 |   |             |   | 931    |   |   |   | (6 | ) |   |   | 36,367 |   |
| Collateralized mortgage obligations     |   |       | 3,232  |   |             |   | 11     |   |   |   | (162 | ) |   |   | 3,081 |   |
| Total debt securities                   |   |       | 41,207 |   |             |   | 978    |   |   |   | (838 | ) |   |   | 41,347 |   |
| Auction-rate trust preferred securities |   |       | 9,273  |   |             |   | 37     |   |   |   | (765 | ) |   |   | 8,545 |   |
|                                    |   |       |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total available-for-sale securities     |   | $          | 50,480 |   |             | $      | 1,015  |   |   | $ | (1,603 | ) |   | $ | 49,892 |   |
|                                    |   |       |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   |       |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                                    |   | Amortized  |   |   | Gross Unrealized |   |   | Fair   |   |
| (In thousands)                          |   | Cost Basis |   |   | Gains            |   |   | Losses |   |   | Value |   |
| Held-to-maturity securities:            |   |       |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities              |   | $          | 1,538  |   |             | $      | -      |   |   | $ | (3 | ) |   | $ | 1,535 |   |
|                                    |   |       |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total held-to-maturity securities       |   | $          | 1,538  |   |             | $      | -      |   |   | $ | (3 | ) |   | $ | 1,535 |   |

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|                                    |   | Amortized  |   |   | Gross Unrealized |   |   | Fair   |   |
|-----------------------------------------|--------|------------|--------|--------|------------------|--------|--------|--------|--------|
| (In thousands)                          |   | Cost Basis |   |   | Gains            |   |   | Losses |   |   | Value |   |
| Available-for-sale securities:          |   |       |   |   |             |   |   |   |   |   |   |   |
| U.S. government and agency obligations  |   | $          | 1,537  |   |             | $      | 67     |   |   | $ | - |   |   | $ | 1,604 |   |
| Municipal obligations                   |   |       | 8,888  |   |             |   | 113    |   |   |   | (8 | ) |   |   | 8,993 |   |
| Corporate bonds                         |   |       | 1,000  |   |             |   | -      |   |   |   | (710 | ) |   |   | 290 |   |
| Mortgage-backed securities              |   |       | 42,297 |   |             |   | 804    |   |   |   | (71 | ) |   |   | 43,030 |   |
| Collateralized mortgage obligations     |   |       | 3,339  |   |             |   | -      |   |   |   | (156 | ) |   |   | 3,183 |   |
| Total debt securities                   |   |       | 57,061 |   |             |   | 984    |   |   |   | (945 | ) |   |   | 57,100 |   |
| Auction-rate trust preferred securities |   |       | 9,273  |   |             |   | -      |   |   |   | (2,529 | ) |   |   | 6,744 |   |
|                                    |   |       |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Total available-for-sale securities     |   | $          | 66,334 |   |             | $      | 984    |   |   | $ | (3,474 | ) |   | $ | 63,844 |   |

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|                                                                        |   | June 30, |    |   | December 31, |   |
|-----------------------------------------------------------------------------|--------|----------|---------|--------|--------------|--------|
| (In thousands)                                                              |   | 2009     |    |   | 2008         |   |
|                                                                        |   |     |    |   |         |   |
| Real estate loans:                                                          |   |     |    |   |         |   |
|   One-to-four family                                              |   | $        | 222,612 |   |         | $      | 216,201 |   |
|   Construction                                                    |   |     | 47,876  |   |         |   | 50,596 |   |
|   Multi-family and commercial real estate                         |   |     | 115,229 |   |         |   | 106,028 |   |
| Total real estate loans                                                     |   |     | 385,717 |   |         |   | 372,825 |   |
|                                                                        |   |     |    |   |         |   |   |   |
| Commercial business loans                                                   |   |     | 26,734  |   |         |   | 22,567 |   |
| Consumer loans:                                                             |   |     |    |   |         |   |   |   |
|   Savings accounts                                                |   |     | 985     |   |         |   | 1,093 |   |
|   Personal                                                        |   |     | 242     |   |         |   | 262 |   |
|   Automobile                                                      |   |     | 227     |   |         |   | 271 |   |
|   Home equity                                                     |   |     | 39,727  |   |         |   | 39,655 |   |
| Total consumer loans                                                        |   |     | 41,181  |   |         |   | 41,281 |   |
|         Totals loans                |   |     | 453,632 |   |         |   | 436,673 |   |
|                                                                        |   |     |    |   |         |   |   |   |
| Less:                                                                       |   |     |    |   |         |   |   |   |
| Allowance for loan losses                                                   |   |     | 3,416   |   |         |   | 2,869 |   |
| Undisbursed construction loans                                              |   |     | 3,369   |   |         |   | 1,299 |   |
| Deferred loan origination fees                                              |   |     | 511     |   |         |   | 529 |   |
|          Loans receivable, net |   | $        | 446,336 |   |         | $      | 431,976 |   |
|                                                                        |   |     |    |   |         |   |   |   |

|                         |   | Six months ended |   |   | For the year ended |   |
|------------------------------|--------|------------------|--------|--------|--------------------|--------|
|                         |   | June 30,         |   |   | December 31,       |   |
| (In thousands)               |   | 2009             |   |   | 2008               |   |
| Balance at beginning of year |   | $                | 2,869  |   |               | $      | 2,163 |   |
| Provision for loan losses    |   |             | 557    |   |               |   | 675 |   |
| Charge-offs                  |   |             | (11    | )      |               |   | (7 | ) |
| Recoveries                   |   |             | 1      |   |               |   | 38 |   |
|                         |   |             |   |   |               |   |   |   |
| Balance at end of period     |   | $                | 3,416  |   |               | $      | 2,869 |   |

----

Table of Contents

|                                        |   | Three Months Ended |      |     | Six Months Ended |   |
|---------------------------------------------|--------|--------------------|-----------|----------|------------------|--------|
|                                        |   | June 30,           |      | June 30, |             |
|                                        |   | 2009               |      |     | 2008             |   |   | 2009 |   |   | 2008 |   |
|                                        |   |               |      |     |             |   |   |   |   |   |   |   |
| Net income                                  |   | $                  | 239,000   |     |             | $      | 602,000 |   |   | $ | 608,000 |   |   | $ | 1,055,000 |   |
|                                        |   |               |      |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Weighted-average common shares outstanding: |   |               |      |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                       |   |               | 6,813,189 |     |             |   | 6,849,891 |   |   |   | 6,813,226 |   |   |   | 6,921,891 |   |
| Effect of dilutive stock options            |   |               |      |     |             |   |   |   |   |   |   |   |   |   |   |   |
| and restrictive stock awards                |   |               | -         |     |             |   | - |   |   |   | - |   |   |   | - |   |
| Diluted                                     |   |               | 6,813,189 |     |             |   | 6,849,891 |   |   |   | 6,813,226 |   |   |   | 6,921,891 |   |
|                                        |   |               |      |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Net income per common share:                |   |               |      |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Basic                                       |   | $                  | 0.04      |     |             | $      | 0.09 |   |   | $ | 0.09 |   |   | $ | 0.15 |   |
| Diluted                                     |   | $                  | 0.04      |     |             | $      | 0.09 |   |   | $ | 0.09 |   |   | $ | 0.15 |   |

|                                                    |   | Three Months Ended |   |     | Six Months Ended |   |
|---------------------------------------------------------|--------|--------------------|--------|----------|------------------|--------|
|                                                    |   | June 30,           |   | June 30, |             |
|                                                    |   | 2009               |   |     | 2008             |   |   | 2009 |   |   | 2008 |   |
|                                                    |   | (In thousands)     |   |
|                                                    |   |               |   |     |             |   |   |   |   |   |   |   |
| Net income                                              |   | $                  | 239    |     |             | $      | 602 |   |   | $ | 608 |   |   | $ | 1,055 |   |
|                                                    |   |               |   |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income:                             |   |               |   |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized gain (loss) on securities available-for-sale |   |               | 63     |     |             |   | (1,458 | ) |   |   | 2,079 |   |   |   | (585 | ) |
| Reclassification adjustment for losses (gains)          |   |               |   |     |             |   |   |   |   |   |   |   |   |   |   |   |
| realized in net income                                  |   |               | -      |     |             |   | - |   |   |   | (176 | ) |   |   | (105 | ) |
|                                                    |   |               |   |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss) before tax effect     |   |               | 63     |     |             |   | (1,458 | ) |   |   | 1,903 |   |   |   | (690 | ) |
|                                                    |   |               |   |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense related to items of other            |   |               |   |     |             |   |   |   |   |   |   |   |   |   |   |   |
| comprehensive income                                    |   |               | (11    | )        |             |   | (496 | ) |   |   | 34 |   |   |   | (235 | ) |
|                                                    |   |               |   |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss) net of tax effect     |   |               | 74     |     |             |   | (962 | ) |   |   | 1,869 |   |   |   | (455 | ) |
|                                                    |   |               |   |     |             |   |   |   |   |   |   |   |   |   |   |   |
| Total Comprehensive Income (Loss)                       |   | $                  | 313    |     |             | $      | (360 | ) |   | $ | 2,477 |   |   | $ | 600 |   |

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|                    |   | Grant date |   |
|-------------------------|--------|------------|--------|
|                    |   | July 26,   |   |   | December 18, |   |   | March 20, |   |   | March 21, |   |   | July 26, |   |
|                    |   | 2008       |   |   | 2007 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                    |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Option awards           |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Awarded                 |   |       | 1,000  |   |   |   | 2,000 |   |   |   | 7,500 |   |   |   | 6,500 |   |   |   | 354,580 |   |
| Exercise price          |   | $          | 11.10  |   |   | $ | 11.10 |   |   | $ | 12.49 |   |   | $ | 11.10 |   |   | $ | 11.10 |   |
| Maximum term            |   |       | 10     |   |   |   | 10 |   |   |   | 10 |   |   |   | 10 |   |   |   | 10 |   |
| Restricted stock awards |   |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Awarded                 |   |       | 1,000  |   |   |   | 3,000 |   |   |   | 2,000 |   |   |   | 1,500 |   |   |   | 139,712 |   |

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|                        |   | July 26, |   |   | December 18, |   |   | March 20, |   |   | March 21, |   |   | July 26, |   |
|-----------------------------|--------|----------|--------|--------|--------------|--------|--------|-----------|--------|--------|-----------|--------|--------|----------|--------|
| Grant date                  |   | 2008     |   |   | 2007         |   |   | 2007      |   |   | 2006      |   |   | 2005     |   |
|                        |   |     |   |   |         |   |   |      |   |   |      |   |   |     |   |
| Dividend yield              |   |     | 2.74   | %      |         |   | 2.20   | %         |   |   | 1.60      | %      |   |     | 1.89   | % |   |   | 1.44 | % |
| Expected volatility         |   |     | 13.40  | %      |         |   | 11.00  | %         |   |   | 10.49     | %      |   |     | 11.20  | % |   |   | 11.47 | % |
| Risk-free rate              |   |     | 3.56   | %      |         |   | 3.63   | %         |   |   | 4.48      | %      |   |     | 4.61   | % |   |   | 4.18 | % |
| Expected life in years      |   |     | 6.5    |   |         |   | 6.5    |      |   |   | 6.5       |   |   |     | 6.5    |   |   |   | 6.5 |   |
|                        |   |     |   |   |         |   |   |      |   |   |      |   |   |     |   |   |   |   |   |   |
| Weighted average fair value |   |     |   |   |         |   |   |      |   |   |      |   |   |     |   |   |   |   |   |   |
| of options at grant date    |   | $        | 1.51   |   |         | $      | 1.18   |      |   | $      | 2.55      |   |   | $        | 2.25   |   |   | $ | 2.47 |   |

|                        |   | June 30, 2009 |    |   | December 31, 2008 |   |
|-----------------------------|--------|---------------|---------|--------|-------------------|--------|
|                        |   | Carrying      |    |   | Estimated         |   |   | Carrying |   |   | Estimated |   |
| (In thousands)              |   | Amount        |    |   | Fair Value        |   |   | Amount |   |   | Fair Value |   |
|                        |   |          |    |   |              |   |   |   |   |   |   |   |
| Financial Assets            |   |          |    |   |              |   |   |   |   |   |   |   |
| Cash and cash equivalents   |   | $             | 8,431   |   |              | $      | 8,431 |   |   | $ | 8,247 |   |   | $ | 8,247 |   |
| Investment securities       |   |          | 49,892  |   |              |   | 51,427 |   |   |   | 63,844 |   |   |   | 63,844 |   |
| Loans receivable, net       |   |          | 446,336 |   |              |   | 449,559 |   |   |   | 431,976 |   |   |   | 440,405 |   |
| Accrued income receivable   |   |          | 1,959   |   |              |   | 1,959 |   |   |   | 2,099 |   |   |   | 2,099 |   |
|                        |   |          |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities       |   |          |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                    |   | $             | 373,705 |   |              | $      | 372,210 |   |   | $ | 363,026 |   |   | $ | 358,474 |   |
| Borrowed funds              |   |          | 108,298 |   |              |   | 109,567 |   |   |   | 119,148 |   |   |   | 120,811 |   |
| Mortgagors' escrow accounts |   |          | 4,887   |   |              |   | 4,887 |   |   |   | 4,562 |   |   |   | 4,562 |   |

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|                                                    |   | June 30, 2009  |
|---------------------------------------------------------|--------|----------------|
|                                                    |   | Carrying Value |
| (In thousands)                                          |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | Total |   |
|                                                    |   |           |   |   |   |   |   |   |   |   |   |   |
| Assets measured at fair value on a recurring basis:     |   |           |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale investment securities                |   | $              | - |   |   | $ | 41 |   |   | $ | 9 |   |   | $ | 50 |   |
| Residential loans held for sale                         |   |           | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                                    |   |           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets measured at fair value on a non-recurring basis: |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans                                          |   |           | - |   |   |   | 860 |   |   |   | 20 |   |   |   | 880 |   |

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n

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|                            |   | Three Months           |   |   |   |   |   | Six Months     |   |   |    |     |
|---------------------------------|--------|------------------------|--------|--------|--------|--------|--------|----------------|--------|--------|---------|----------|
|                            |   | Ended June 30,         |   |   |   |   |   | Ended June 30, |   |   |    |     |
|                            |   | 2009                   |   |   | 2008   |   |   | % Change       |   | 2009   |    |     | 2008 |   |   | % Change |
|                            |   | (Dollars in thousands) |   |   |
| Interest income:                |   |                   |   |   |   |   |   |           |   |   |    |     |   |   |   |   |   |   |
| Loans                           |   | $                      | 6,387  |   |   | $      | 5,958  |           |   |   | 7.20    |   % |   | $ | 12,765 |   |   | $ | 11,876 |   |   |   | 7.49 |   % |
| Fed Funds sold                  |   |                   | 1      |   |   |   | 7      |           |   |   | (85.71  | ) %      |   |   | 4 |   |   |   | 34 |   |   |   | (88.24 | ) % |
| Investment securities           |   |                   | 619    |   |   |   | 862    |           |   |   | (28.19  | ) %      |   |   | 1,326 |   |   |   | 1,696 |   |   |   | (21.82 | ) % |
| Federal Home Loan Bank stock    |   |                   | -      |   |   |   | 50     |           |   |   | (100.00 | ) %      |   |   | - |   |   |   | 118 |   |   |   | (100.00 | ) % |
| Total interest income           |   |                   | 7,007  |   |   |   | 6,877  |           |   |   | 1.89    |   % |   |   | 14,095 |   |   |   | 13,724 |   |   |   | 2.70 |   % |
| Interest expense:               |   |                   |   |   |   |   |   |           |   |   |    |     |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificate accounts            |   |                   | 1,977  |   |   |   | 1,933  |           |   |   | 2.28    |   % |   |   | 4,071 |   |   |   | 4,126 |   |   |   | (1.33 | ) % |
| Regular savings accounts        |   |                   | 101    |   |   |   | 69     |           |   |   | 46.38   |   % |   |   | 199 |   |   |   | 132 |   |   |   | 50.76 |   % |
| Checking and NOW accounts       |   |                   | 11     |   |   |   | 33     |           |   |   | (66.67  | ) %      |   |   | 23 |   |   |   | 105 |   |   |   | (78.10 | ) % |
| Money market savings accounts   |   |                   | 75     |   |   |   | 130    |           |   |   | (42.31  | ) %      |   |   | 171 |   |   |   | 283 |   |   |   | (39.58 | ) % |
| Total interest-bearing deposits |   |                   | 2,164  |   |   |   | 2,165  |           |   |   | (0.05   | ) %      |   |   | 4,464 |   |   |   | 4,646 |   |   |   | (3.92 | ) % |
| FHLB advances                   |   |                   | 1,060  |   |   |   | 1,174  |           |   |   | (9.71   | ) %      |   |   | 2,166 |   |   |   | 2,237 |   |   |   | (3.17 | ) % |
| Other borrowings                |   |                   | 42     |   |   |   | 4      |           |   |   | 950.00  |   % |   |   | 51 |   |   |   | 6 |   |   |   | 750.00 |   % |
| Total interest expense          |   |                   | 3,266  |   |   |   | 3,343  |           |   |   | (2.30   | ) %      |   |   | 6,681 |   |   |   | 6,889 |   |   |   | (3.02 | ) % |
| Net interest income             |   | $                      | 3,741  |   |   | $      | 3,534  |           |   |   | 5.86    |   % |   | $ | 7,414 |   |   | $ | 6,835 |   |   |   | 8.47 |   % |

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|                                  |   | Three Months Ended June 30, |    |   | Six Months Ended June 30, |   |
|---------------------------------------|--------|-----------------------------|---------|--------|---------------------------|--------|
|                                  |   | 2009                        |    |   | 2008                      |   |   | 2009 |   |   | 2008 |   |
|                                  |   | Average                     |    |   | Yield/                    |   |   | Average |   |   | Yield/ |   |   | Average |   |   | Yield/ |   |   | Average |   |   | Yield/ |   |
|                                  |   | Balance                     |    |   | Cost                      |   |   | Balance |   |   | Cost |   |   | Balance |   |   | Cost |   |   | Balance |   |   | Cost |   |
|                                  |   | (Dollars in thousands)      |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                  |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets               |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                 |   | $                           | 442,415 |   |                      |   | 5.77 | % |   | $ | 384,792 |   |   |   | 6.19 | % |   | $ | 438,591 |   |   |   | 5.82 | % |   | $ | 377,361 |   |   |   | 6.29 | % |
| Fed Funds sold                        |   |                        | 6,109   |   |                      |   | 0.07 | % |   |   | 1,206 |   |   |   | 2.32 | % |   |   | 8,762 |   |   |   | 0.09 | % |   |   | 2,036 |   |   |   | 3.34 | % |
| Investment securities                 |   |                        | 53,513  |   |                      |   | 4.63 | % |   |   | 72,007 |   |   |   | 4.79 | % |   |   | 56,530 |   |   |   | 4.69 | % |   |   | 69,731 |   |   |   | 4.86 | % |
| Federal Home Loan Bank stock          |   |                        | 6,252   |   |                      |   | 0.00 | % |   |   | 5,773 |   |   |   | 3.46 | % |   |   | 6,252 |   |   |   | 0.00 | % |   |   | 5,423 |   |   |   | 4.35 | % |
|                                  |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets         |   | $                           | 508,289 |   |                      |   | 5.51 | % |   | $ | 463,778 |   |   |   | 5.93 | % |   | $ | 510,135 |   |   |   | 5.53 | % |   | $ | 454,551 |   |   |   | 6.04 | % |
|                                  |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities          |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Certificate accounts                  |   | $                           | 240,234 |   |                      |   | 3.29 | % |   | $ | 203,853 |   |   |   | 3.79 | % |   | $ | 240,527 |   |   |   | 3.39 | % |   | $ | 203,296 |   |   |   | 4.06 | % |
| Regular savings accounts & escrow |   |                        | 60,084  |   |                      |   | 0.67 | % |   |   | 49,734 |   |   |   | 0.55 | % |   |   | 56,818 |   |   |   | 0.70 | % |   |   | 46,865 |   |   |   | 0.56 | % |
| Checking and NOW accounts             |   |                        | 49,557  |   |                      |   | 0.09 | % |   |   | 51,780 |   |   |   | 0.25 | % |   |   | 53,577 |   |   |   | 0.09 | % |   |   | 53,439 |   |   |   | 0.39 | % |
| Money market savings accounts         |   |                        | 25,795  |   |                      |   | 1.16 | % |   |   | 28,534 |   |   |   | 1.82 | % |   |   | 25,468 |   |   |   | 1.34 | % |   |   | 28,129 |   |   |   | 2.01 | % |
|                                  |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing deposits       |   |                        | 375,670 |   |                      |   | 2.30 | % |   |   | 333,901 |   |   |   | 2.59 | % |   |   | 376,390 |   |   |   | 2.37 | % |   |   | 331,729 |   |   |   | 2.80 | % |
| FHLB advances                         |   |                        | 103,333 |   |                      |   | 4.10 | % |   |   | 108,105 |   |   |   | 4.34 | % |   |   | 109,299 |   |   |   | 3.96 | % |   |   | 100,939 |   |   |   | 4.43 | % |
| Other borrowings                      |   |                        | 10,035  |   |                      |   | 1.67 | % |   |   | 656 |   |   |   | 2.44 | % |   |   | 5,932 |   |   |   | 1.72 | % |   |   | 437 |   |   |   | 2.75 | % |
|                                  |   |                        |    |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities    |   | $                           | 489,038 |   |                      |   | 2.67 | % |   | $ | 442,662 |   |   |   | 3.02 | % |   | $ | 491,621 |   |   |   | 2.72 | % |   | $ | 433,105 |   |   |   | 3.18 | % |

|                             |   | Three Months   |   |   | Six Months     |   |
|----------------------------------|--------|----------------|--------|--------|----------------|--------|
|                             |   | Ended June 30, |   |   | Ended June 30, |   |
|                             |   | 2009           |   |   | 2008           |   |   | 2009 |   |   | 2008 |   |
|                             |   | (In thousands) |   |
| Allowance at beginning of period |   | $              | 3,143  |   |           | $      | 2,325 |   |   | $ | 2,869 |   |   | $ | 2,163 |   |
| Provision for loan losses        |   |           | 272    |   |           |   | 113 |   |   |   | 557 |   |   |   | 275 |   |
|                             |   |           |   |   |           |   |   |   |   |   |   |   |   |   |   |   |
| Charge-offs                      |   |           | -      |   |           |   | (7 | ) |   |   | (11 | ) |   |   | (7 | ) |
| Recoveries                       |   |           | 1      |   |           |   | 38 |   |   |   | 1 |   |   |   | 38 |   |
| Net recoveries (charge-offs)     |   |           | 1      |   |           |   | 31 |   |   |   | (10 | ) |   |   | 31 |   |
| Allowance at end of period       |   | $              | 3,416  |   |           | $      | 2,469 |   |   | $ | 3,416 |   |   | $ | 2,469 |   |

----

Table of Contents

|                                                                                   |   | At June 30,            |   |   | At December 31, |   |   |     |   |
|----------------------------------------------------------------------------------------|--------|------------------------|--------|--------|-----------------|--------|--------|----------|--------|
|                                                                                   |   | 2009                   |   |   | 2008            |   |   | % Change |
|                                                                                   |   | (Dollars in thousands) |   |   |            |   |
|  Nonaccrual loans                                                                 |   | $                      | 3,326  |   |            | $      | 2,678  |     |   |   | 24.20 | % |
|  Troubled debt restructure                                                        |   |                   | 146    |   |            |   | -      |     |   |   | N/A |   |
|  Real estate owned                                                                |   |                   | 153    |   |            |   | -      |     |   |   | N/A |   |
|           Total nonperforming assets |   | $                      | 3,625  |   |            | $      | 2,678  |     |   |   | 35.36 | % |
|                                                                                   |   |                   |   |   |            |   |   |     |   |   |   |   |
|  Total nonperforming loans to total loans                                         |   |                   | 0.77   | %      |            |   | 0.62   | %        |   |   | 24.19 | % |
|                                                                                   |   |                   |   |   |            |   |   |     |   |   |   |   |
|  Total nonperforming loans to total assets                                        |   |                   | 0.65   | %      |            |   | 0.50   | %        |   |   | 30.00 | % |
|                                                                                   |   |                   |   |   |            |   |   |     |   |   |   |   |
|  Total nonperforming assets to total assets                                       |   |                   | 0.67   | %      |            |   | 0.50   | %        |   |   | 34.00 | % |

|                                          |   | Three Months           |   |   |   |   |   | Six Months     |   |   |    |     |
|-----------------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|----------------|--------|--------|---------|----------|
|                                          |   | Ended June 30,         |   |   |   |   |   | Ended June 30, |   |   |    |     |
|                                          |   | 2009                   |   |   | 2008   |   |   | % Change       |   | 2009   |    |     | 2008 |   |   | % Change |
|                                          |   | (Dollars in thousands) |
| Fees for services related to deposit accounts |   | $                      | 258    |   |   | $      | 273    |           |   |   | (5.49   | ) %      |   | $ | 493 |   |   | $ | 517 |   |   |   | (4.64 | ) % |
| Fees for other services                       |   |                   | 174    |   |   |   | 132    |           |   |   | 31.82   |   % |   |   | 299 |   |   |   | 249 |   |   |   | 20.08 |   % |
| Income from investment advisory services, net |   |                   | 101    |   |   |   | 92     |           |   |   | 9.78    |   % |   |   | 158 |   |   |   | 174 |   |   |   | (9.20 | ) % |
| Income from bank owned life insurance         |   |                   | 87     |   |   |   | 78     |           |   |   | 11.54   |   % |   |   | 171 |   |   |   | 153 |   |   |   | 11.76 |   % |
| Gain on investments                           |   |                   | -      |   |   |   | 46     |           |   |   | (100.00 | ) %      |   |   | 176 |   |   |   | 105 |   |   |   | 67.62 |   % |
| Other income                                  |   |                   | 25     |   |   |   | 40     |           |   |   | (37.50  | ) %      |   |   | 56 |   |   |   | 89 |   |   |   | (37.08 | ) % |
| Total                                         |   | $                      | 645    |   |   | $      | 661    |           |   |   | (2.42   | ) %      |   | $ | 1,353 |   |   | $ | 1,287 |   |   |   | 5.13 |   % |

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|                                |   | Three Months           |   |   |   |   |   | Six Months     |   |   |     |     |
|-------------------------------------|--------|------------------------|--------|--------|--------|--------|--------|----------------|--------|--------|----------|----------|
|                                |   | Ended March 31,        |   |   |   |   |   | Ended June 30, |   |   |     |     |
|                                |   | 2009                   |   |   | 2008   |   |   | % Change       |   | 2009   |     |     | 2008 |   |   | % Change |
|                                |   | (Dollars in thousands) |
| Compensation, taxes and benefits    |   | $                      | 1,943  |   |   | $      | 1,837  |           |   |   | 5.77     |   % |   | $ | 3,827 |   |   | $ | 3,684 |   |   |   | 3.88 |   % |
| Office occupancy                    |   |                   | 559    |   |   |   | 554    |           |   |   | 0.90     |   % |   |   | 1,093 |   |   |   | 1,078 |   |   |   | 1.39 |   % |
| FDIC insurance premiums             |   |                   | 389    |   |   |   | 13     |           |   |   | 2,892.31 |   % |   |   | 625 |   |   |   | 22 |   |   |   | 2,740.91 |   % |
| Computer processing                 |   |                   | 248    |   |   |   | 203    |           |   |   | 22.17    |   % |   |   | 470 |   |   |   | 398 |   |   |   | 18.09 |   % |
| Advertising                         |   |                   | 130    |   |   |   | 118    |           |   |   | 10.17    |   % |   |   | 185 |   |   |   | 199 |   |   |   | (7.04 | ) % |
| Directors compensation              |   |                   | 118    |   |   |   | 142    |           |   |   | (16.90   | ) %      |   |   | 317 |   |   |   | 287 |   |   |   | 10.45 |   % |
| Loss on foreclosed real estate, net |   |                   | 2      |   |   |   | -      |           |   |   | -        |   % |   |   | 9 |   |   |   | 3 |   |   |   | 200.00 |   % |
| Other expenses                      |   |                   | 407    |   |   |   | 390    |           |   |   | 4.36     |   % |   |   | 870 |   |   |   | 793 |   |   |   | 9.71 |   % |
| Total                               |   | $                      | 3,796  |   |   | $      | 3,257  |           |   |   | 16.55    |   % |   | $ | 7,396 |   |   | $ | 6,464 |   |   |   | 14.42 |   % |

a

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|                                         |   | June 30, |   |   | December 31, |   |
|----------------------------------------------|--------|----------|--------|--------|--------------|--------|
| (In thousands)                               |   | 2009     |   |   | 2008         |   |
| Commitments to extend credit:                |   |     |   |   |         |   |
| Loan commitments                             |   | $        | 19,797 |   |         | $      | 5,807 |   |
| Unused lines of credit                       |   |     | 20,804 |   |         |   | 20,328 |   |
| Amounts due mortgagors on construction loans |   |     | 25,988 |   |         |   | 25,855 |   |
| Amounts due on commercial  loans   |   |     | 16,623 |   |         |   | 15,384 |   |
| Commercial letters of credit                 |   |     | 5,605  |   |         |   | 5,125 |   |

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|                                                 |   |           |   |   |             |   |   | Naugatuck Valley |   |
|------------------------------------------------------|--------|----------------|--------|--------|------------------|--------|--------|------------------|--------|
|                                                 |   | OTS Regulation |   |   | Savings and Loan |   |
|                                                 |   | Adequately     |   |   | Well             |   |   |             |   |   |   |   |
| (Dollars in thousands)                               |   | Capitalized    |   |   | Capitalized      |   |   | Amount           |   |   | Ratio |   |
|                                                 |   |           |   |   |             |   |   |             |   |   |   |   |
| Tier I  Capital (to Adjusted Total Assets) |   |           | 4.00   | %      |             |   | 5.00   | %                |   | $ | 41,372 |   |   |   | 7.73 | % |
|                                                 |   |           |   |   |             |   |   |             |   |   |   |   |   |   |   |   |
| Total Risk-Based Capital (to Risk-Weighted Assets)   |   |           | 8.00   | %      |             |   | 10.00  | %                |   |   | 44,788 |   |   |   | 11.16 | % |
|                                                 |   |           |   |   |             |   |   |             |   |   |   |   |   |   |   |   |
| Tier I Risk-Based Capital (to Risk-Weighted Assets)  |   |           | 4.00   | %      |             |   | 6.00   | %                |   |   | 41,372 |   |   |   | 10.31 | % |
|                                                 |   |           |   |   |             |   |   |             |   |   |   |   |   |   |   |   |
| Tangible Equity Capital (to Tangible Assets)         |   |           | 1.50   | %      |             |   | 2.00   | %                |   |   | 41,372 |   |   |   | 7.73 | % |

3

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|               |   |                |                   |                    |     |   |   |     |   |      |   | Net Portfolio Value as % of |
|--------------------|--------|---------------------|------------------------|-------------------------|----------|--------|--------|----------|--------|-----------|--------|-----------------------------|
| Basis Point ("bp") |   | Net Portfolio Value |                   | Present Value of Assets |
| Change in Rates    |   | $ Amount            |                   |                    | $ Change |   |   | % Change |   | NPV Ratio |   | Change                      |
|               |   |                | (Dollars in thousands) |                    |     |   |   |     |   |      |   |                        |   |
|               |   |                |                   |                    |     |   |   |     |   |      |   |                        |   |   |   |   |
|               | 300    | bp                  |                   | $                       | 40,117   |   |   | $        | (6,449 | )         |   |                        | (14 | ) % |   |   | 7.44 | % |   |   | (0.81 | ) % |
|               | 200    |                |                   |                    | 45,171   |   |   |     | (1,395 | )         |   |                        | (3 | ) % |   |   | 8.21 | % |   |   | (0.04 | ) % |
|               | 100    |                |                   |                    | 47,486   |   |   |     | 920    |      |   |                        | 2 |   % |   |   | 8.50 | % |   |   | 0.25 |   % |
|               | 50     |                |                   |                    | 47,296   |   |   |     | 730    |      |   |                        | 2 |   % |   |   | 8.41 | % |   |   | 0.16 |   % |
|               | 0      |                |                   |                    | 46,566   |   |   |     | -      |      |   |                        | - |   |   |   | 8.25 | % |   |   | - |   |
|               | (50    | )                   |                   |                    | 45,348   |   |   |     | (1,218 | )         |   |                        | (3 | ) % |   |   | 8.00 | % |   |   | (0.25 | ) % |
|               | (100   | )                   |                   |                    | 43,501   |   |   |     | (3,065 | )         |   |                        | (7 | ) % |   |   | 7.65 | % |   |   | (0.60 | ) % |

s

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E

l

k

s

U

n

|   | 1.     | The following individual was elected as director for a three year term:                                                                                                              |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                 |   |   |
|   |   |                                                                                                                                                                                 | VOTES FOR | VOTES WITHHELD |
|   |   |                                                                                                                                                                                 |   |   |
|   |   | Richard M. Famiglietti                                                                                                                                                               | 6,117,971 | 144,966 |
|   |   |                                                                                                                                                                                 |   |   |
|   | 2.     | The appointment of Whittlesey & Hadley, P.C. as independent auditors of the Company for the year ended December 31, 2009 was ratified by the stockholders by the following vote: |
|   |   |                                                                                                                                                                                 |   |   |
|   |   | FOR                                                                                                                                                                                  | AGAINST | ABSTAIN |
|   |   |                                                                                                                                                                                 |   |   |
|   |   | 6,158,832                                                                                                                                                                            | 74,411 | 29,794 |

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i

|   | Exhibits – |                                                                     |
|--------|------------------|--------------------------------------------------------------------------|
|   |             |                                                                     |
|   | 3.1              | Charter of Naugatuck Valley Financial Corporation (1)                    |
|   | 3.2              | Bylaws of Naugatuck Valley Financial Corporation (2)                     |
|   | 4.1              | Specimen Stock Certificate of Naugatuck Valley Financial Corporation (3) |
|   | 31.1             | Rule 13a-14(a)/15d-14(a) Certification.                                  |
|   | 31.2             | Rule 13a-14(a)/15d-14(a) Certification.                                  |
|   | 32               | Section 1350 Certifications.                                             |

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A

| Date: August 12, 2009 | by:    | /s/ John C. Roman                                 |
|-----------------------|--------|---------------------------------------------------|
|                  |   | John C. Roman                                     |
|                  |   | President and Chief Executive Officer             |
|                  |   | (principal executive officer)                     |
|                  |   |                                              |
|                  |   |                                              |
| Date: August 12, 2009 | by:    | /s/ Lee R. Schlesinger                            |
|                  |   | Lee R. Schlesinger                                |
|                  |   | Senior Vice President and Chief Financial Officer |
|                  |   | (principal financial officer)                     |