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|       |          |   |
|------------|---------------|--------|
| Georgetown | North Andover | Rowley |

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|       |          |   |
|------------|---------------|--------|
| Georgetown | North Andover | Rowley |

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|                                                                                                                      |    |
|---------------------------------------------------------------------------------------------------------------------------|---------|
| Table of Contents                                                                                                         |    |
|                                                                                                                      |    |
| Message From the President                                                                                                |  4 |
|                                                                                                                      |    |
| Selected Financial Information                                                                                  | 6       |
|                                                                                                                      |    |
| Management’s Discussion and Analysis of Financial Condition and Results of Operations | 7       |
|                                                                                                                      |    |
| Report of Independent Registered Public Accounting Firm                                               | F-2     |
|                                                                                                                      |    |
| Consolidated Balance Sheets                                                                                     | F-3     |
|                                                                                                                      |    |
| Consolidated Statements of Income                                                                               | F-4     |
|                                                                                                                      |    |
| Consolidated Statements of Changes in Stockholders’ Equity                                           | F-5     |
|                                                                                                                      |    |
| Consolidated Statements of Cash Flows                                                                      | F-6     |
|                                                                                                                      |    |
| Notes to Consolidated Financial Statements                                                                 | F-8     |

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| Message from the President                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| On behalf of the Board of Directors and all of our dedicated employees, I am pleased to present the 2010 Annual Report of Georgetown Bancorp, Inc.                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Georgetown Savings Bank continued to operate safely and soundly as the banking industry wrestled with a stubborn recession and anticipated the passing of the Dodd-Frank Financial Reform Act, the most sweeping banking legislation since the 1930’s. Once again, despite increased regulatory intervention and a floundering economy, we remained focused on our customers, community, and continued successful execution of our strategic plan.                                                                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Our primary objective for fiscal 2010 was to generate further earnings improvement through the continued growth of our commercial loan portfolio, while maintaining our high credit standards, continued growth of core deposits, expanding our net interest income, and growth of non-interest income through increased emphasis on our mortgage banking operation. The Bank showed a steady ability to adapt to a rapidly changing environment and stay focused on continued improvement in its financial performance.                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| Commercial and construction loans grew by 29% and were 48% of total loans as of June 30, 2010, compared to 40% of total loans as of June 30, 2009. Asset quality was extremely strong with non-performing loans remaining well below industry averages. In addition, we continue to maintain conservative underwriting standards and a high percentage of our commercial loans are well collateralized by residential 1-4 family and multi-family real estate.                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
| In December 2009, the Bank introduced a new checking account line. Our new Prime and 24/7 checking accounts were developed in response to the increasing threat of identity theft and offer free LifeLock® Proactive Identity Theft Protection service for the life of the account. The LifeLock value proposition has added new life to our checking account promotions and contributed to core deposit growth of 9%. Our net interest income continued to expand, increasing by 21% over last year, aided by the growth of core deposits and a continuing low interest rate environment.  |

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|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| In 2009, we initiated a plan to increase residential loan originations for sale in the secondary market. With thousands of mortgage companies going out of business as a result of the sub-prime mortgage debacle, consumers have rediscovered the benefits of doing business with their local community bank. This development, in addition to a historically low interest rate environment, has created a unique opportunity to capitalize and expand upon one of our core businesses. The sale of residential mortgages, while retaining the servicing of those mortgages, allows us to finance the dream of homeownership for a larger number of customers. In addition, we are creating a larger customer base from which to cross sell other bank services. Our efforts continue to produce positive results. Net gains on sale and servicing of residential mortgage loans increased 73% over fiscal 2009, contributing to an overall 25% increase in non-interest income. Going forward, we expect increasing revenues from our mortgage banking operation through expansion of our origination team.   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Our success in achieving our targeted objectives resulted in a $589,000 or 168% increase in our after-tax net income.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| We continue to apply a disciplined approach to the execution of our strategic plan. Also, we continue to fulfill our role as a leader in our local communities through the continued support of local businesses and charitable organizations, in spite of a persistently difficult financial environment. We are committed to our mission of providing exceptional personal service and serving the best interests of our customers, shareholders, and business partners and we look forward to continued profitable growth in 2011 and beyond. Thank you for your support.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Sincerely,                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| /s/ Robert E. Balletto                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Robert E. Balletto                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
| President/Chief Executive Officer                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |

|       |          |   |
|------------|---------------|--------|
| Georgetown | North Andover | Rowley |

----

| Selected Financial Information     |   |           |    |   |   |   |
|------------------------------------|--------|----------------|---------|--------|--------|--------|
|                               |   |           |    |   |   |   |
|                               |   | At June 30,    |    |
|                               |   | 2010           |    |   | 2009   |   |
|                               |   | (In thousands) |    |
| Selected Financial Condition Data: |   |           |    |   |   |   |
| Total assets                       |   | $              | 211,545 |   |   | $      | 201,191 |   |
| Cash and cash equivalents          |   |           | 7,340   |   |   |   | 11,356 |   |
| Loans receivable, net              |   |           | 175,867 |   |   |   | 163,825 |   |
| Allowance for loan losses          |   |           | 1,676   |   |   |   | 1,455 |   |
| Investment securities              |   |           | 14,643  |   |   |   | 14,487 |   |
| Deposits                           |   |           | 147,286 |   |   |   | 141,126 |   |
| Borrowings (1)                     |   |           | 43,368  |   |   |   | 40,788 |   |
| Total stockholders' equity         |   |           | 18,368  |   |   |   | 17,317 |   |
|                               |   |           |    |   |   |   |   |   |

|                                                                      |   |                                  |   |   |   |   |
|---------------------------------------------------------------------------|--------|---------------------------------------|--------|--------|--------|--------|
|                                                                      |   | Years Ended June 30,                  |   |
|                                                                      |   | 2010                                  |   |   | 2009   |   |
|                                                                      |   | (In thousands, except per share data) |   |
| Selected Operating Data:                                                  |   |                                  |   |   |   |   |
| Interest and dividend income                                              |   | $                                     | 10,734 |   |   | $      | 10,551 |   |
| Interest expense                                                          |   |                                  | 3,680  |   |   |   | 4,709 |   |
|    Net interest income                                     |   |                                  | 7,054  |   |   |   | 5,842 |   |
| Provision for loan losses                                                 |   |                                  | 361    |   |   |   | 248 |   |
|     Net interest income, after                        |   |                                  |   |   |   |   |   |   |
|         provision for loan losses |   |                                  | 6,693  |   |   |   | 5,594 |   |
| Non-interest income                                                       |   |                                  | 1,085  |   |   |   | 870 |   |
| Non-interest expense                                                      |   |                                  | 6,320  |   |   |   | 5,933 |   |
| Income before income taxes                                                |   |                                  | 1,458  |   |   |   | 531 |   |
| Income tax provision                                                      |   |                                  | 519    |   |   |   | 181 |   |
|    Net income                                              |   | $                                     | 939    |   |   | $      | 350 |   |
|                                                                      |   |                                  |   |   |   |   |   |   |
| Net income per share:  Basic and diluted                        |   | $                                     | 0.36   |   |   | $      | 0.14 |   |
|                                                                      |   |                                  |   |   |   |   |   |   |

|                                                                                                        |   |                |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|--------|--------|
|                                                                                                        |   | At or For the Years |   |
|                                                                                                        |   | Ended June 30,      |   |
|                                                                                                        |   | 2010                |   |   | 2009   |   |
|                                                                                                        |   |                |   |   |   |   |
| Selected Financial Ratios and Other Data:                                                                   |   |                |   |   |   |   |
|                                                                                                        |   |                |   |   |   |   |
| Performance Ratios:                                                                                         |   |                |   |   |   |   |
| Return on assets (ratio of net income to average total assets)                                              |   |                | 0.47   | %      |   |   | 0.18 | % |
| Return on equity (ratio of net income to average equity)                                                    |   |                | 5.30   | %      |   |   | 2.05 | % |
| Interest rate spread   (2)                                                                   |   |                | 3.41   | %      |   |   | 2.85 | % |
| Net interest margin    (3)                                                              |   |                | 3.70   | %      |   |   | 3.19 | % |
| Efficiency ratio           (4)                       |   |                | 77.64  | %      |   |   | 88.39 | % |
| Non-interest expense to average total assets                                                                |   |                | 3.14   | %      |   |   | 3.05 | % |
| Average interest-earning assets to average interest-bearing liabilities                                     |   |                | 115.22 | %      |   |   | 113.03 | % |
|                                                                                                        |   |                |   |   |   |   |   |   |
| Asset Quality Ratios:                                                                                       |   |                |   |   |   |   |   |   |
| Non-performing assets to total assets                                                                       |   |                | 0.21   | %      |   |   | 0.37 | % |
| Non-performing loans to total loans                                                                         |   |                | 0.21   | %      |   |   | 0.45 | % |
| Allowance for loan losses to non-performing loans                                                           |   |                | 452.97 | %      |   |   | 197.42 | % |
| Allowance for loan losses to total loans                                                                    |   |                | 0.94   | %      |   |   | 0.88 | % |
|                                                                                                        |   |                |   |   |   |   |   |   |
| Capital Ratios:                                                                                             |   |                |   |   |   |   |   |   |
| Stockholders' equity to total assets at end of period                                                       |   |                | 8.68   | %      |   |   | 8.61 | % |
| Total capital to risk-weighted assets   (5)                                                  |   |                | 11.40  | %      |   |   | 11.30 | % |
| Tier 1 capital to risk-weighted assets  (5)                                                       |   |                | 10.40  | %      |   |   | 10.40 | % |
| Tier 1 capital to average assets            (5) |   |                | 8.50   | %      |   |   | 8.00 | % |
|                                                                                                        |   |                |   |   |   |   |   |   |
|                                                                                                        |   |                |   |   |   |   |   |   |

| 1.  Includes securities sold under agreements to repurchase.                                                                |   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
| 2.  The interest rate spread represents the difference between the weighted-average yield on interest-earning assets        |
|       and the weighted-average cost of interest-bearing liabilities for the period.                     |   |   |   |
| 3.  The net interest margin represents net interest income as a percent of average interest-earning assets for the period.  |
| 4.  The efficiency ratio represents non-interest expense divided by the sum of net interest income and non-interest income. |
| 5.  Calculation is for Georgetown Savings Bank.                                                                             |   |   |   |   |   |
|                                                                                                                                  |   |   |   |   |   |

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|                                                           |   | At June 30,            |    |
|----------------------------------------------------------------|--------|------------------------|---------|
|                                                           |   | 2010                   |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                           |   | Amount                 |    |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |   | Amount |   |   | Percent |   |
|                                                           |   | (Dollars in thousands) |    |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential loans:                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     One-to-four family                     |   | $                      | 74,390  |   |   |   | 41.92 | % |   | $ | 82,140 |   |   |   | 49.74 | % |   | $ | 88,992 |   |   |   | 59.35 | % |   | $ | 93,806 |   |   |   | 72.97 | % |   | $ | 94,417 |   |   |   | 72.84 | % |
|     Home equity loans                      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      and lines of credit              |   |                   | 17,251  |   |   |   | 9.72 |   |   |   | 16,592 |   |   |   | 10.05 |   |   |   | 11,565 |   |   |   | 7.71 |   |   |   | 10,304 |   |   |   | 8.01 |   |   |   | 10,614 |   |   |   | 8.19 |   |
| Total residential mortgage loans                               |   |                   | 91,641  |   |   |   | 51.64 |   |   |   | 98,732 |   |   |   | 59.79 |   |   |   | 100,557 |   |   |   | 67.06 |   |   |   | 104,110 |   |   |   | 80.98 |   |   |   | 105,031 |   |   |   | 81.03 |   |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Commercial loans:                                              |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     One-to-four family investment property | 7,080  |                   |    |   | 3.99 |   |   |   | 4,795 |   |   |   | 2.90 |   |   |   | 1,953 |   |   |   | 1.30 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Multi-family real estate               |   |                   | 14,085  |   |   |   | 7.94 |   |   |   | 8,226 |   |   |   | 4.98 |   |   |   | 3,601 |   |   |   | 2.40 |   |   |   | 975 |   |   |   | 0.76 |   |   |   | - |   |   |   | - |   |
|     Commercial real estate                 |   |                   | 26,535  |   |   |   | 14.95 |   |   |   | 21,525 |   |   |   | 13.04 |   |   |   | 17,380 |   |   |   | 11.59 |   |   |   | 13,581 |   |   |   | 10.56 |   |   |   | 11,891 |   |   |   | 9.17 |   |
|     Commercial                             |   |                   | 11,010  |   |   |   | 6.21 |   |   |   | 8,364 |   |   |   | 5.06 |   |   |   | 5,595 |   |   |   | 3.73 |   |   |   | 2,157 |   |   |   | 1.68 |   |   |   | 1,473 |   |   |   | 1.14 |   |
| Total commercial loans                                         |   |                   | 58,710  |   |   |   | 33.09 |   |   |   | 42,910 |   |   |   | 25.98 |   |   |   | 28,529 |   |   |   | 19.02 |   |   |   | 16,713 |   |   |   | 13.00 |   |   |   | 13,364 |   |   |   | 10.31 |   |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Construction loans:                                            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     One-to-four family                     |   |                   | 15,873  |   |   |   | 8.95 |   |   |   | 13,327 |   |   |   | 8.07 |   |   |   | 11,210 |   |   |   | 7.47 |   |   |   | 2,589 |   |   |   | 2.01 |   |   |   | 9,411 |   |   |   | 7.26 |   |
|     Multi-family                           |   |                   | 7,161   |   |   |   | 4.03 |   |   |   | 2,786 |   |   |   | 1.69 |   |   |   | 7,293 |   |   |   | 4.86 |   |   |   | 2,833 |   |   |   | 2.20 |   |   |   | - |   |   |   | - |   |
|     Commercial                             |   |                   | 3,329   |   |   |   | 1.88 |   |   |   | 7,042 |   |   |   | 4.26 |   |   |   | 1,883 |   |   |   | 1.26 |   |   |   | 1,565 |   |   |   | 1.22 |   |   |   | 1,179 |   |   |   | 0.91 |   |
| Total construction loans                                       |   |                   | 26,363  |   |   |   | 14.86 |   |   |   | 23,155 |   |   |   | 14.02 |   |   |   | 20,386 |   |   |   | 13.59 |   |   |   | 6,987 |   |   |   | 5.43 |   |   |   | 10,590 |   |   |   | 8.17 |   |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Consumer                                                       |   |                   | 719     |   |   |   | 0.41 |   |   |   | 353 |   |   |   | 0.21 |   |   |   | 498 |   |   |   | 0.33 |   |   |   | 763 |   |   |   | 0.59 |   |   |   | 630 |   |   |   | 0.49 |   |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans:                                                   |   |                   | 177,433 |   |   |   | 100.00 | % |   |   | 165,150 |   |   |   | 100.00 | % |   |   | 149,970 |   |   |   | 100.00 | % |   |   | 128,573 |   |   |   | 100.00 | % |   |   | 129,615 |   |   |   | 100.00 | % |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other items:                                                   |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net deferred loan costs                                        |   |                   | 110     |   |   |   |   |   |   |   | 130 |   |   |   |   |   |   |   | 151 |   |   |   |   |   |   |   | 165 |   |   |   |   |   |   |   | 179 |   |   |   |   |   |
| Allowance for loan losses                                      |   |                   | (1,676  | ) |   |   |   |   |   |   | (1,455 | ) |   |   |   |   |   |   | (1,212 | ) |   |   |   |   |   |   | (1,079 | ) |   |   |   |   |   |   | (1,016 | ) |   |   |   |   |
|                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans, net                                               |   | $                      | 175,867 |   |   |   |   |   |   | $ | 163,825 |   |   |   |   |   |   | $ | 148,909 |   |   |   |   |   |   | $ | 127,659 |   |   |   |   |   |   | $ | 128,778 |   |   |   |   |   |

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----

----

----

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|                                                                                                                                                                   |   | At June 30,                  |    |   | Fiscal Years Ended June 30, |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------|---------|--------|-----------------------------|--------|
|                                                                                                                                                                   |   | 2010                         |    |   | 2010                        |   |   | 2009 |   |
|                                                                                                                                                                   |   |                         |    |   | Weighted                    |   |   | Average |   |   |   |   |   |   |   |   | Average |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   | Outstanding                  |    |   | Average                     |   |   | Outstanding |   |   |   |   |   | Yield/ |   |   | Outstanding |   |   |   |   |   | Yield/ |   |
|                                                                                                                                                                   |   | Balance                      |    |   | Rate                        |   |   | Balance |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
|                                                                                                                                                                   |   |  (Dollars in thousands) |    |
| Interest-earning assets:                                                                                                                                               |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                                                                                                                                                  |   | $                            | 179,102 |   |                        |   | 5.95 | % |   | $ | 169,610 |   |   | $ | 10,110 |   |   |   | 5.96 | % |   | $ | 161,760 |   |   | $ | 9,725 |   |   |   | 6.01 | % |
| Investment securities (1)                                                                                                                                              |   |                         | 17,754  |   |                        |   | 3.30 | % |   |   | 18,487 |   |   |   | 622 |   |   |   | 3.36 | % |   |   | 20,416 |   |   |   | 820 |   |   |   | 4.02 | % |
| Short-term investments                                                                                                                                                 |   |                         | 3,461   |   |                        |   | 0.01 | % |   |   | 2,472 |   |   |   | 2 |   |   |   | 0.08 | % |   |   | 1,191 |   |   |   | 6 |   |   |   | 0.50 | % |
|      Total interest-earning assets                                                                                                            |   |                         | 200,317 |   |                        |   | 5.61 | % |   |   | 190,569 |   |   |   | 10,734 |   |   |   | 5.63 | % |   |   | 183,367 |   |   |   | 10,551 |   |   |   | 5.75 | % |
| Non-interest-earning assets                                                                                                                                            |   |                         | 11,228  |   |                        |   |   |   |   |   | 10,661 |   |   |   | - |   |   |   |   |   |   |   | 11,114 |   |   |   | - |   |   |   |   |   |
| Total assets                                                                                                                                                           |   | $                            | 211,545 |   |                        |   |   |   |   | $ | 201,230 |   |   |   | 10,734 |   |   |   |   |   |   | $ | 194,481 |   |   |   | 10,551 |   |   |   |   |   |
|                                                                                                                                                                   |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                                                          |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                                                                                                                                                       |   | $                            | 12,308  |   |                        |   | 0.24 | % |   | $ | 11,647 |   |   |   | 20 |   |   |   | 0.17 | % |   | $ | 10,417 |   |   | $ | 12 |   |   |   | 0.12 | % |
| NOW accounts                                                                                                                                                           |   |                         | 13,540  |   |                        |   | 0.74 | % |   |   | 11,611 |   |   |   | 40 |   |   |   | 0.34 | % |   |   | 9,451 |   |   |   | 11 |   |   |   | 0.12 | % |
| Money market accounts                                                                                                                                                  |   |                         | 50,877  |   |                        |   | 1.31 | % |   |   | 43,201 |   |   |   | 484 |   |   |   | 1.12 | % |   |   | 39,075 |   |   |   | 810 |   |   |   | 2.07 | % |
| Certificates of deposit                                                                                                                                                |   |                         | 55,129  |   |                        |   | 2.47 | % |   |   | 56,887 |   |   |   | 1,658 |   |   |   | 2.91 | % |   |   | 51,065 |   |   |   | 1,777 |   |   |   | 3.48 | % |
| Total interest-bearing deposits                                                                                                                                        |   |                         | 131,854 |   |                        |   | 1.63 | % |   |   | 123,346 |   |   |   | 2,202 |   |   |   | 1.79 | % |   |   | 110,008 |   |   |   | 2,610 |   |   |   | 2.37 | % |
| FHLB advances                                                                                                                                                          |   |                         | 42,961  |   |                        |   | 3.15 | % |   |   | 41,590 |   |   |   | 1,476 |   |   |   | 3.55 | % |   |   | 51,710 |   |   |   | 2,097 |   |   |   | 4.06 | % |
| Repurchase agreements                                                                                                                                                  |   |                         | 407     |   |                        |   | 0.50 | % |   |   | 465 |   |   |   | 2 |   |   |   | 0.43 | % |   |   | 514 |   |   |   | 2 |   |   |   | 0.39 | % |
|     Total interest-bearing liabilities                                                                                                             |   |                         | 175,222 |   |                        |   | 2.00 | % |   |   | 165,401 |   |   |   | 3,680 |   |   |   | 2.22 | % |   |   | 162,232 |   |   |   | 4,709 |   |   |   | 2.90 | % |
| Non-interest-bearing liabilities:                                                                                                                                      |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                                                                                                                        |   |                         | 15,432  |   |                        |   |   |   |   |   | 16,289 |   |   |   |   |   |   |   |   |   |   |   | 13,676 |   |   |   |   |   |   |   |   |   |
| Other non-interest-bearing liabilities                                                                                                                                 |   |                         | 2,523   |   |                        |   |   |   |   |   | 1,814 |   |   |   |   |   |   |   |   |   |   |   | 1,461 |   |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                                                                                      |   |                         | 193,177 |   |                        |   |   |   |   |   | 183,504 |   |   |   |   |   |   |   |   |   |   |   | 177,369 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                                                                                                   |   |                         | 18,368  |   |                        |   |   |   |   |   | 17,726 |   |   |   |   |   |   |   |   |   |   |   | 17,112 |   |   |   |   |   |   |   |   |   |
|      Total liabilities and equity                                                                                                             |   | $                            | 211,545 |   |                        |   |   |   |   | $ | 201,230 |   |   |   |   |   |   |   |   |   |   | $ | 194,481 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                                                                    |   |                         |    |   |                        |   |   |   |   |   |   |   |   | $ | 7,054 |   |   |   |   |   |   |   |   |   |   | $ | 5,842 |   |   |   |   |   |
| Net interest rate spread (2)                                                                                                                                           |   |                         |    |   |                        |   | 3.61 | % |   |   |   |   |   |   |   |   |   |   | 3.41 | % |   |   |   |   |   |   |   |   |   |   | 2.85 | % |
| Net interest-earning assets (3)                                                                                                                                        |   | $                            | 25,095  |   |                        |   |   |   |   | $ | 25,168 |   |   |   |   |   |   |   |   |   |   | $ | 21,135 |   |   |   |   |   |   |   |   |   |
| Net interest margin (4)                                                                                                                                                |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   | 3.70 | % |   |   |   |   |   |   |   |   |   |   | 3.19 | % |
| Average of interest-earning                                                                                                                                            |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      assets to interest-bearing                                                                                                               |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       liabilities                                                                                                                        |   |                         |    |   |                        |   | 114.32 | % |   |   |   |   |   |   |   |   |   |   | 115.22 | % |   |   |   |   |   |   |   |   |   |   | 113.03 | % |
|                                                                                                                                                                   |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                   |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Consists entirely of taxable investment securities.                                                                                                           |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (2) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |   |
| (3) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.                                                 |   |                         |    |   |                        |   |   |   |   |
| (4) Net interest margin represents net interest income divided by average total interest-earning assets.                                                          |   |                         |    |   |                        |   |   |   |   |
|                                                                                                                                                                   |   |                         |    |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

----

| Rate/Volume Analysis |
|----------------------|

|                                                        |   | Fiscal Years Ended June 30, |   |
|-------------------------------------------------------------|--------|-----------------------------|--------|
|                                                        |   | 2010 vs. 2009               |   |
|                                                        |   | Increase (Decrease) Due to  |   |   |   |   |
|                                                        |   | Volume                      |   |   | Rate |   |   | Net |   |
|                                                        |   | (In thousands)              |   |
|                                                        |   |                        |   |   |   |   |   |   |   |
| Interest-earning assets:                                    |   |                        |   |   |   |   |   |   |   |
| Loans                                                       |   | $                           | 472    |   |   | $ | (87 | ) |   | $ | 385 |   |
| Investment securities (1)                                   |   |                        | (77    | ) |   |   | (121 | ) |   |   | (198 | ) |
| Short-term investments                                      |   |                        | 6      |   |   |   | (10 | ) |   |   | (4 | ) |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |
|      Total interest-earning assets |   |                        | 401    |   |   |   | (218 | ) |   |   | 183 |   |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                               |   |                        |   |   |   |   |   |   |   |   |   |   |
| Savings deposits                                            |   |                        | 1      |   |   |   | 7 |   |   |   | 8 |   |
| NOW accounts                                                |   |                        | 3      |   |   |   | 26 |   |   |   | 29 |   |
| Money market accounts                                       |   |                        | 86     |   |   |   | (412 | ) |   |   | (326 | ) |
| Certificates of deposit                                     |   |                        | 203    |   |   |   | (322 | ) |   |   | (119 | ) |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing deposits                             |   |                        | 293    |   |   |   | (701 | ) |   |   | (408 | ) |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |
| FHLB advances                                               |   |                        | (410   | ) |   |   | (211 | ) |   |   | (621 | ) |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |
|     Total interest-bearing liabilities  |   |                        | (117   | ) |   |   | (912 | ) |   |   | (1,029 | ) |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income                               |   | $                           | 518    |   |   | $ | 694 |   |   | $ | 1,212 |   |
|                                                        |   |                        |   |   |   |   |   |   |   |   |   |   |
| (1) Consists entirely of taxable investment securities.     |   |                        |   |   |   |

----

| Changes in             |   |         |   |     |
|------------------------|--------|--------------|--------|----------|
| Interest Rates         |   | Net Interest |   |     |
| (Basis Points)         |   | Income       |   | % Change |
| (Dollars in thousands) |
|                   |   |         |   |     |
| 200                    |   | $6,417       |   | 0.7%     |
| 0                      |   | $6,372       |   | 0.0%     |
| -100                   |   | $6,428       |   | 0.9%     |

----

----

----

----

|                                                             | Page        |
|------------------------------------------------------------------|-------------|
|                                                             |        |
| Report of Independent Registered Public Accounting Firm          | F-2         |
|                                                             |        |
| Consolidated Balance Sheets                                      | F-3         |
|                                                             |        |
| Consolidated Statements of Income                                | F-4         |
|                                                             |        |
| Consolidated Statements of Changes in Stockholders’ Equity | F-5         |
|                                                             |        |
| Consolidated Statements of Cash Flows                            | F-6 to F-7  |
|                                                             |        |
| Notes to Consolidated Financial Statements                       | F-8 to F-47 |

----

----

| GEORGETOWN BANCORP, INC. AND SUBSIDIARY |
|-----------------------------------------|
|                                    |
| CONSOLIDATED BALANCE SHEETS             |
|                                    |
| At June 30, 2010 and 2009               |
|                                    |
| ASSETS                                  |

|                                                                                                                                 |   |           |    |   |   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                                                                                                                 |   | 2010           |    |   | 2009   |   |
|                                                                                                                                 |   | (In thousands) |    |
|                                                                                                                                 |   |           |    |   |   |   |
| Cash and due from banks                                                                                                              |   | $              | 3,879   |   |   | $      | 3,355 |   |
| Short-term investments                                                                                                               |   |           | 3,461   |   |   |   | 8,001 |   |
|                Total cash and cash equivalents            |   |           | 7,340   |   |   |   | 11,356 |   |
|                                                                                                                                 |   |           |    |   |   |   |   |   |
| Securities available for sale, at fair value                                                                                         |   |           | 10,925  |   |   |   | 9,528 |   |
| Securities held to maturity, at amortized cost                                                                                       |   |           | 3,718   |   |   |   | 4,959 |   |
| Federal Home Loan Bank stock, at cost                                                                                                |   |           | 3,111   |   |   |   | 3,111 |   |
| Loans held for sale                                                                                                                  |   |           | 1,559   |   |   |   | 269 |   |
| Loans, net of allowance for loan losses of $1,676,000                                                                                |   |           |    |   |   |   |   |   |
|     at June 30, 2010 and $1,455,000 at June 30, 2009                                                             |   |           | 175,867 |   |   |   | 163,825 |   |
| Premises and equipment, net                                                                                                          |   |           | 4,017   |   |   |   | 4,212 |   |
| Accrued interest receivable                                                                                                          |   |           | 794     |   |   |   | 714 |   |
| Bank-owned life insurance                                                                                                            |   |           | 2,546   |   |   |   | 2,414 |   |
| Prepaid FDIC insurance                                                                                                               |   |           | 610     |   |   |   | - |   |
| Other assets                                                                                                                         |   |           | 1,058   |   |   |   | 803 |   |
|                                                                                                                                 |   |           |    |   |   |   |   |   |
|                Total assets                               |   | $              | 211,545 |   |   | $      | 201,191 |   |
|                                                                                                                                 |   |           |    |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                 |
|                                                                                                                                 |   |           |    |   |   |   |   |   |
| Deposits                                                                                                                             |   | $              | 147,286 |   |   | $      | 141,126 |   |
| Securities sold under agreements to repurchase                                                                                       |   |           | 407     |   |   |   | 520 |   |
| Short-term Federal Home Loan Bank advances                                                                                           |   |           | 7,250   |   |   |   | - |   |
| Long-term Federal Home Loan Bank advances                                                                                            |   |           | 35,711  |   |   |   | 40,268 |   |
| Mortgagors' escrow accounts                                                                                                          |   |           | 455     |   |   |   | 407 |   |
| Accrued expenses and other liabilities                                                                                               |   |           | 2,068   |   |   |   | 1,553 |   |
|                Total liabilities                          |   |           | 193,177 |   |   |   | 183,874 |   |
|                                                                                                                                 |   |           |    |   |   |   |   |   |
| Commitments and contingencies (Note 14)                                                                                              |   |           |    |   |   |   |   |   |
|                                                                                                                                 |   |           |    |   |   |   |   |   |
| Stockholders' equity:                                                                                                                |   |           |    |   |   |   |   |   |
| Preferred stock, $0.10 par value per share:  1,000,000                                                                     |   |           |    |   |   |   |   |   |
| shares authorized; none outstanding                                                                                                  |   |           | -       |   |   |   | - |   |
| Common stock, $0.10 par value per share: 10,000,000                                                                                  |   |           |    |   |   |   |   |   |
| shares authorized; 2,777,250 shares issued                                                                                           |   |           | 278     |   |   |   | 278 |   |
| Additional paid-in capital                                                                                                           |   |           | 11,438  |   |   |   | 11,350 |   |
| Retained earnings                                                                                                                    |   |           | 8,167   |   |   |   | 7,228 |   |
| Accumulated other comprehensive income                                                                                               |   |           | 193     |   |   |   | 136 |   |
| Unearned compensation - ESOP (40,886 and 49,078 shares unallocated                                                                   |   |           |    |   |   |   |   |   |
|     at June 30, 2010 and 2009, respectively)                                                                     |   |           | (409    | )      |   |   | (491 | ) |
| Unearned compensation - Restricted stock (24,000 shares non-vested                                                                   |   |           |    |   |   |   |   |   |
|     at June 30, 2010)                                                                                            |   |           | (115    | )      |   |   | - |   |
| Treasury stock, at cost (138,863 shares)                                                                                             |   |           | (1,184  | )      |   |   | (1,184 | ) |
|                Total stockholders' equity                 |   |           | 18,368  |   |   |   | 17,317 |   |
|                                                                                                                                 |   |           |    |   |   |   |   |   |
|                Total liabilities and stockholders' equity |   | $              | 211,545 |   |   | $      | 201,191 |   |
|                                                                                                                                 |   |           |    |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                                                                         |   |           |    |   |   |   |   |   |

----

| GEORGETOWN BANCORP, INC. AND SUBSIDIARY |
|-----------------------------------------|
|                                    |
| CONSOLIDATED STATEMENTS OF INCOME       |
|                                    |
| Years Ended June 30, 2010 and 2009      |
|                                    |

|                                                                                                                         |   | 2010                              |      |   | 2009   |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------|-----------|--------|--------|--------|
|                                                                                                                         |   | (In thousands, except share data) |      |
|                                                                                                                         |   |                              |      |   |   |   |
| Interest and dividend income:                                                                                                |   |                              |      |   |   |   |
|     Loans, including fees                                                                                |   | $                                 | 10,110    |   |   | $      | 9,725 |   |
|     Securities                                                                                           |   |                              | 622       |   |   |   | 820 |   |
|     Short-term investments                                                                               |   |                              | 2         |   |   |   | 6 |   |
|                Total interest and dividend income |   |                              | 10,734    |   |   |   | 10,551 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| Interest expense:                                                                                                            |   |                              |      |   |   |   |   |   |
|     Deposits                                                                                             |   |                              | 2,202     |   |   |   | 2,610 |   |
|     Short-term Federal Home Loan Bank advances                                                           |   |                              | 14        |   |   |   | 110 |   |
|     Long-term Federal Home Loan Bank advances                                                            |   |                              | 1,462     |   |   |   | 1,987 |   |
|     Securities sold under agreements to repurchase                                                       |   |                              | 2         |   |   |   | 2 |   |
|                Total interest expense             |   |                              | 3,680     |   |   |   | 4,709 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| Net interest income                                                                                                          |   |                              | 7,054     |   |   |   | 5,842 |   |
| Provision for loan losses                                                                                                    |   |                              | 361       |   |   |   | 248 |   |
| Net interest income, after provision for loan losses                                                                         |   |                              | 6,693     |   |   |   | 5,594 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| Non-interest income:                                                                                                         |   |                              |      |   |   |   |   |   |
|     Customer service fees                                                                                |   |                              | 645       |   |   |   | 633 |   |
|     Mortgage banking income, net                                                                         |   |                              | 378       |   |   |   | 219 |   |
|     Income from bank-owned life insurance                                                                |   |                              | 60        |   |   |   | 8 |   |
|     Other                                                                                                |   |                              | 2         |   |   |   | 10 |   |
|                Total non-interest income          |   |                              | 1,085     |   |   |   | 870 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| Non-interest expenses:                                                                                                       |   |                              |      |   |   |   |   |   |
|     Salaries and employee benefits                                                                       |   |                              | 3,499     |   |   |   | 3,255 |   |
|     Occupancy and equipment expenses                                                                     |   |                              | 767       |   |   |   | 776 |   |
|     Data processing expenses                                                                             |   |                              | 442       |   |   |   | 378 |   |
|     Professional fees                                                                                    |   |                              | 360       |   |   |   | 275 |   |
|     Advertising expenses                                                                                 |   |                              | 274       |   |   |   | 215 |   |
|     FDIC insurance                                                                                       |   |                              | 214       |   |   |   | 252 |   |
|     Other general and administrative expenses                                                            |   |                              | 764       |   |   |   | 782 |   |
|                Total non-interest expenses        |   |                              | 6,320     |   |   |   | 5,933 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| Income before income taxes                                                                                                   |   |                              | 1,458     |   |   |   | 531 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| Income tax provision                                                                                                         |   |                              | 519       |   |   |   | 181 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| Net income                                                                                                                   |   | $                                 | 939       |   |   | $      | 350 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| Weighted-average number of common shares outstanding:                                                                        |   |                              |      |   |   |   |   |   |
|    Basic and diluted                                                                                          |   |                              | 2,601,668 |   |   |   | 2,584,892 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| Net income per share:                                                                                                        |   |                              |      |   |   |   |   |   |
|    Basic and diluted                                                                                          |   | $                                 | 0.36      |   |   | $      | 0.14 |   |
|                                                                                                                         |   |                              |      |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                                                                 |   |                              |      |   |   |   |   |   |

----

|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |
|----------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|------------|--------|---------|----------|---------|--------|---------------|--------|---------|---------------|---------|--------|------------------|--------|---------|----------|---------|--------|---------|--------|
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   | Accumulated   |   |    |          |    |   |             |   |    |     |    |   |    |   |
|                                                                                                                             |   |           |    |   | Additional |   |    |     |    |   | Other         |   |    | Unearned      |    |   | Unearned         |   |    |     |    |   |    |   |
|                                                                                                                             |   | Common         |    |   | Paid-in    |   |    | Retained |    |   | Comprehensive |   |    | Compensation- |    |   | Compensation-    |   |    | Treasury |    |   |    |   |
|                                                                                                                             |   | Stock          |    |   | Capital    |   |    | Earnings |    |   | Income (Loss) |   |    | ESOP          |    |   | Restricted Stock |   |    | Stock    |    |   | Total   |   |
|                                                                                                                             |   | (In thousands) |    |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |
| Balance at June 30, 2008                                                                                                         |   | $              | 278     |   |       | $      | 11,393  |     |    | $      | 6,878         |   |    | $             | (19     | )      |             | $      | (573    | )        |    |   | -       |   |   | $ | (1,184 | ) |   | $ | 16,773 |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                                                                            |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
|     Net income                                                                                               |   |           | -       |   |       |   | -       |     |    |   | 350           |   |    |          | -       |   |             |   | -       |     |    |   | -       |   |   |   | - |   |   |   | 350 |   |
|     Net unrealized gain on securities                                                                        |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
|         available for sale, net of related                                               |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
|         tax effects of $84,000                                                           |   |           | -       |   |       |   | -       |     |    |   | -             |   |    |          | 155     |   |             |   | -       |     |    |   | -       |   |   |   | - |   |   |   | 155 |   |
|                  Total comprehensive income |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   | 505 |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| Common stock held by ESOP allocated or                                                                                           |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |
| committed to be allocated (8,193 shares)                                                                                         |   |           | -       |   |       |   | (43     | )        |    |   | -             |   |    |          | -       |   |             |   | 82      |     |    |   | -       |   |   |   | - |   |   |   | 39 |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2009                                                                                                         |   |           | 278     |   |       |   | 11,350  |     |    |   | 7,228         |   |    |          | 136     |   |             |   | (491    | )        |    |   | -       |   |   |   | (1,184 | ) |   |   | 17,317 |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                                                                            |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
|     Net income                                                                                               |   |           |  - |   |       |   |  - |     |    |   | 939           |   |    |          |  - |   |             |   |  - |     |    |   |  - |   |   |   |  - |   |   |   | 939 |   |
|     Net unrealized gain on securities                                                                        |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
|         available for sale, net of related                                               |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
|         tax effects of $32,000                                                           |   |           |  - |   |       |   |  - |     |    |   |  -       |   |    |          | 57      |   |             |   |  - |     |    |   |  - |   |   |   |  - |   |   |   | 57 |   |
|                  Total comprehensive income |   |           |  - |   |       |   |  - |     |    |   |  -       |   |    |          |  - |   |             |   |  - |     |    |   |  - |   |   |   |  - |   |   |   | 996 |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| Common stock held by ESOP allocated or                                                                                           |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |
|     committed to be allocated (8,192 shares)                                                                      | -      |           |    |   | (41        | )      |    |     |  - |   |          |   |  - |          |    |   | 82               |   |    |     |  - |   |    |   |  - |   |   |   | 41 |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| Restricted stock granted in connection with equity                                                                               |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |
| incentive plan (25,000 shares)                                                                                                   |   |           |  - |   |       |   | 130     |     |    |   |  -       |   |    |          |  - |   |             |   |  - |     |    |   | (130    | )      |   |   |  - |   |   |   | - |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| Forfeiture of restricted stock (1,000 shares)                                                                                    | -      |           |    |   | (5         | )      |    |     |  - |   |          |   |  - |          |    |   |  -          |   |    |     | 5       |   |    |   |  - |   |   |   | - |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| Share based compensation - options                                                                                               |   |           |  - |   |       |   | 4       |     |    |   |  -       |   |    |          |  - |   |             |   |  - |     |    |   |  - |   |   |   |  - |   |   |   | 4 |   |
| Share based compensation - restricted stock                                                                                      | -      |           |    |   |  -    |   |    |     |  - |   |          |   |  - |          |    |   |  -          |   |    |     | 10      |   |    |   |  - |   |   |   | 10 |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| Balance at June 30, 2010                                                                                                         |   | $              | 278     |   |       | $      | 11,438  |     |    | $      | 8,167         |   |    | $             | 193     |   |             | $      | (409    | )        |    | $      | (115    | )      |   | $ | (1,184 | ) |   | $ | 18,368 |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
|                                                                                                                             |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements.                                                                     |   |           |    |   |       |   |    |     |    |   |          |   |    |          |    |   |             |   |    |     |    |   |    |   |   |

----

|                                                                                                                                                         |   | 2010           |    |   | 2009   |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                                                                                                                                         |   | (In thousands) |    |
| Cash flows from operating activities:                                                                                                                        |   |           |    |   |   |   |
| Net income                                                                                                                                                   |   | $              | 939     |   |   | $      | 350 |   |
|     Adjustments to reconcile net income to net cash                                                                                      |   |           |    |   |   |   |   |   |
|         provided (used) by operating activities:                                                                     |   |           |    |   |   |   |   |   |
|             Provision for loan losses                                                            |   |           | 361     |   |   |   | 248 |   |
|             Accretion of securities, net                                                         |   |           | (23     | )      |   |   | (34 | ) |
|             Amortization of deferred loan fees and costs, net                                    |   |           | (22     | )      |   |   | (31 | ) |
|             Depreciation and amortization expense                                                |   |           | 343     |   |   |   | 360 |   |
|             Increase in accrued interest receivable                                              |   |           | (80     | )      |   |   | (40 | ) |
|             Income from bank-owned life insurance                                                |   |           | (60     | )      |   |   | (8 | ) |
|             Stock-based compensation expense                                                     |   |           | 55      |   |   |   | 39 |   |
|             Loans originated for sale                                                            |   |           | (20,759 | )      |   |   | (12,015 | ) |
|             Principal balance of loans sold                                                      |   |           | 19,480  |   |   |   | 11,746 |   |
|             Prepaid FDIC insurance                                                               |   |           | (610    | )      |   |   | - |   |
|             Net change in other assets and liabilities                                           |   |           | 217     |   |   |   | 78 |   |
|                   Net cash (used) provided by operating activities |   |           | (159    | )      |   |   | 693 |   |
|                                                                                                                                                         |   |           |    |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                        |   |           |    |   |   |   |   |   |
|     Activity in securities available for sale:                                                                                           |   |           |    |   |   |   |   |   |
|          Maturities, prepayments and calls                                                                      |   |           | 5,206   |   |   |   | 7,447 |   |
|          Purchases                                                                                              |   |           | (6,500  | )      |   |   | (4,010 | ) |
|     Maturities, prepayments and calls                                                                                                    |   |           |    |   |   |   |   |   |
|         of securities held to maturity                                                                               |   |           | 1,250   |   |   |   | 1,326 |   |
|     Purchase of Federal Home Loan Bank stock                                                                                             |   |           | -       |   |   |   | (103 | ) |
|     Loan originations, net                                                                                                               |   |           | (13,546 | )      |   |   | (15,133 | ) |
|     Principal balance of portfolio loans sold                                                                                            |   |           | 1,165   |   |   |   | - |   |
|     Purchase of premises and equipment                                                                                                   |   |           | (148    | )      |   |   | (114 | ) |
|     Proceeds from redemption of bank-owned life insurance                                                                                |   |           | 112     |   |   |   | - |   |
|     Purchase of bank-owned life insurance                                                                                                |   |           | (184    | )      |   |   | - |   |
|                  Net cash used by investing activities                  |   |           | (12,645 | )      |   |   | (10,587 | ) |
|                                                                                                                                                         |   |           |    |   |   |   |   |   |
|                                                                                                                                                         |   |           |    |   |   |   |   |   |

|                                                         |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                         |   |   |   |   |   |   |   |   |
| (continued)                                                  |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements. |   |   |   |   |   |   |   |   |

----

|                                                                                                                                                  |   | 2010           |    |   | 2009   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|--------|--------|--------|
|                                                                                                                                                  |   | (In thousands) |    |
| Cash flows from financing activities:                                                                                                                 |   |           |    |   |   |   |
|     Net change in deposits                                                                                                        |   |           | 6,160   |   |   |   | 34,834 |   |
|     Net change in securities sold under agreements                                                                                |   |           |    |   |   |   |   |   |
|         to repurchase                                                                                         |   |           | (113    | )      |   |   | (32 | ) |
|     Net change in Federal Home Loan Bank advances with                                                                            |   |           |    |   |   |   |   |   |
| maturities of  three months or less                                                                                                         |   |           | 7,250   |   |   |   | (14,000 | ) |
|     Proceeds from Federal Home Loan Bank advances                                                                                 |   |           |    |   |   |   |   |   |
|         with maturities greater than three months                                                             |   |           | 9,500   |   |   |   | 15,500 |   |
|     Repayments of Federal Home Loan Bank advances                                                                                 |   |           |    |   |   |   |   |   |
|         with maturities greater than three months                                                             |   |           | (14,057 | )      |   |   | (20,553 | ) |
|     Net change in mortgagors' escrow accounts                                                                                     |   |           | 48      |   |   |   | 46 |   |
|                   Net cash provided by financing activities |   |           | 8,788   |   |   |   | 15,795 |   |
|                                                                                                                                                  |   |           |    |   |   |   |   |   |
| Net change in cash and cash equivalents                                                                                                               |   |           | (4,016  | )      |   |   | 5,901 |   |
|                                                                                                                                                  |   |           |    |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                                                                                        |   |           | 11,356  |   |   |   | 5,455 |   |
|                                                                                                                                                  |   |           |    |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                                                                              |   | $              | 7,340   |   |   | $      | 11,356 |   |
|                                                                                                                                                  |   |           |    |   |   |   |   |   |
| Supplementary information:                                                                                                                            |   |           |    |   |   |   |   |   |
| Interest paid on deposit accounts                                                                                                                     |   | $              | 2,203   |   |   | $      | 2,615 |   |
| Interest paid on borrowings                                                                                                                           |   |           | 1,509   |   |   |   | 2,136 |   |
| Income taxes paid                                                                                                                                     |   |           | 128     |   |   |   | 110 |   |

|                                                         |   |   |   |   |   |   |   |   |
|--------------------------------------------------------------|--------|--------|--------|--------|--------|--------|--------|--------|
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |
| See accompanying notes to consolidated financial statements. |   |   |   |   |   |   |   |   |

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|                                                          |   | Years Ended June 30, |      |
|---------------------------------------------------------------|--------|----------------------|-----------|
|                                                          |   | 2010                 |      |   | 2009 |   |
|                                                          |   |                 |      |   |   |   |
| Net income available to common stockholders                   |   | $                    | 939,000   |   |   | $ | 350,000 |   |
|                                                          |   |                 |      |   |   |   |   |   |
| Basic common shares:                                          |   |                 |      |   |   |   |   |   |
| Weighted average shares outstanding                           |   |                 | 2,638,387 |   |   |   | 2,638,387 |   |
| Less:  Weighted average unallocated ESOP shares     |   |                 | (45,302   | ) |   |   | (53,495 | ) |
| Add:  Weighted average unvested restricted stock    |   |                 |      |   |   |   |   |   |
|    shares with non-forfeitable dividend rights |   |                 | 8,583     |   |   |   | - |   |
| Basic weighted average common shares outstanding              |   |                 | 2,601,668 |   |   |   | 2,584,892 |   |
|                                                          |   |                 |      |   |   |   |   |   |
| Dilutive potential common shares                              |   |                 | -         |   |   |   | - |   |
|                                                          |   |                 |      |   |   |   |   |   |
| Diluted weighted average common shares outstanding            |   |                 | 2,601,668 |   |   |   | 2,584,892 |   |
|                                                          |   |                 |      |   |   |   |   |   |
|                                                          |   |                 |      |   |   |   |   |   |
| Basic and diluted earnings per share                          |   | $                    | 0.36      |   |   | $ | 0.14 |   |

----

----

|                       |   | At June 30,    |   |
|----------------------------|--------|----------------|--------|
|                       |   | 2010           |   |   | 2009 |   |
|                       |   | (In thousands) |   |
|                       |   |           |   |   |   |   |
| FHLB Ideal Way             |   | $              | 3,403  |   |   | $ | 154 |   |
| Federal funds sold         |   |           | 57     |   |   |   | 7,846 |   |
| Shay Asset Management Fund |   |           | 1      |   |   |   | 1 |   |
|                       |   |           |   |   |   |   |   |   |
|                       |   | $              | 3,461  |   |   | $ | 8,001 |   |

|                                                                                                         |   |           |   |   | Gross      |   |   | Gross      |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                                                                                         |   | Amortized      |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                                                                                         |   | Cost           |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
|                                                                                                         |   | (In thousands) |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |
| At June 30, 2010                                                                                             |   |           |   |   |       |   |   |       |   |   |   |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |
| Securities available for sale                                                                                |   |           |   |   |       |   |   |       |   |   |   |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |
|     Government-sponsored                                                                 |   |           |   |   |       |   |   |       |   |   |   |   |
|         enterprise obligations                                       |   | $              | 5,000  |   |       | $      | 19     |       |   | $      | -      |   |   | $ | 5,019 |   |
|     Residential mortgage-backed                                                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|     securities                                                                                |   |           | 5,627  |   |       |   | 279    |       |   |   | -      |   |   |   | 5,906 |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|            Total securities                           |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                available for sale |   | $              | 10,627 |   |       | $      | 298    |       |   | $      | -      |   |   | $ | 10,925 |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Securities held to maturity                                                                                  |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|     Residential mortgage-backed                                                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|   securities                                                                                       |   | $              | 3,718  |   |       | $      | 209    |       |   | $      | -      |   |   | $ | 3,927 |   |

----

|                                                                                                         |   |           |   |   | Gross      |   |   | Gross      |   |   |   |   |
|--------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                                                                                         |   | Amortized      |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                                                                                         |   | Cost           |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
|                                                                                                         |   | (In thousands) |   |
| At June 30, 2009                                                                                             |   |           |   |   |       |   |   |       |   |   |   |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |
| Securities available for sale                                                                                |   |           |   |   |       |   |   |       |   |   |   |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |
|     Government-sponsored                                                                 |   |           |   |   |       |   |   |       |   |   |   |   |
|           enterprise obligations                                |   | $              | 1,500  |   |       | $      | -      |       |   | $      | (2     | )      |   | $ | 1,498 |   |
|     Residential mortgage-backed                                                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|   securities                                                                                       |   |           | 7,819  |   |       |   | 216    |       |   |   | (5     | )      |   |   | 8,030 |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|            Total securities                           |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                available for sale |   | $              | 9,319  |   |       | $      | 216    |       |   | $      | (7     | )      |   | $ | 9,528 |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
| Securities held to maturity                                                                                  |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|                                                                                                         |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|     Residential mortgage-backed                                                          |   |           |   |   |       |   |   |       |   |   |   |   |   |   |   |   |
|   securities                                                                                       |   | $              | 4,959  |   |       | $      | 142    |       |   | $      | -      |   |   | $ | 5,101 |   |

|                               |   | Available for Sale |   |   | Held to Maturity |   |
|------------------------------------|--------|--------------------|--------|--------|------------------|--------|
|                               |   | Amortized          |   |   | Fair             |   |   | Amortized |   |   | Fair |   |
|                               |   | Cost               |   |   | Value            |   |   | Cost |   |   | Value |   |
|                               |   | (In thousands)     |   |
| After 1 year through               |   |               |   |   |             |   |   |   |   |   |   |   |
|     5 years    |   | $                  | 1,500  |   |             | $      | 1,507 |   |   | $ | - |   |   | $ | - |   |
| After 5 years through              |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|     10 years   |   |               | 2,500  |   |             |   | 2,511 |   |   |   | - |   |   |   | - |   |
| Over 10 years                      |   |               | 1,000  |   |             |   | 1,001 |   |   |   | - |   |   |   | - |   |
|                               |   |               | 5,000  |   |             |   | 5,019 |   |   |   | - |   |   |   | - |   |
| Residential mortgage-backed        |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|     securities |   |               | 5,627  |   |             |   | 5,906 |   |   |   | 3,718 |   |   |   | 3,927 |   |
|                               |   |               |   |   |             |   |   |   |   |   |   |   |   |   |   |   |
|                               |   | $                  | 10,627 |   |             | $      | 10,925 |   |   | $ | 3,718 |   |   | $ | 3,927 |   |

----

|                                                                                                 |   | Less Than Twelve Months |   |   | Greater Than Twelve Months |   |
|------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|----------------------------|--------|
|                                                                                                 |   | Gross                   |   |   |                       |   |   | Gross |   |   |   |   |
|                                                                                                 |   | Unrealized              |   |   | Fair                       |   |   | Unrealized |   |   | Fair |   |
|                                                                                                 |   | Losses                  |   |   | Value                      |   |   | Losses |   |   | Value |   |
|                                                                                                 |   | (In thousands)          |   |
| At June 30, 2009:                                                                                    |   |                    |   |   |                       |   |   |   |   |   |   |   |
|                                                                                                 |   |                    |   |   |                       |   |   |   |   |   |   |   |
| Securities available for sale                                                                        |   |                    |   |   |                       |   |   |   |   |   |   |   |
|                                                                                                 |   |                    |   |   |                       |   |   |   |   |   |   |   |
|     Government-sponsored                                                         |   |                    |   |   |                       |   |   |   |   |   |   |   |
|           enterprise obligations                        |   | $                       | 2      |   |                       | $      | 1,498 |   |   | $ | - |   |   | $ | - |   |
|     Residential mortgage-backed                                                  |   |                    |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
|   securities                                                                               |   |                    | 5      |   |                       |   | 1,455 |   |   |   | - |   |   |   | - |   |
|              Total temporarily impaired  |   |                    |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |
|                securities |   | $                       | 7      |   |                       | $      | 2,953 |   |   | $ | - |   |   | $ | - |   |
|                                                                                                 |   |                    |   |   |                       |   |   |   |   |   |   |   |   |   |   |   |

----

|                                                           |   | At June 30,    |    |
|----------------------------------------------------------------|--------|----------------|---------|
|                                                           |   | 2010           |    |   | 2009 |   |
|                                                           |   | (In thousands) |    |
| Residential loans:                                             |   |           |    |   |   |   |
|     One-to-four family                     |   | $              | 74,390  |   |   | $ | 82,140 |   |
|     Home equity loans                      |   |           |    |   |   |   |   |   |
|      and lines of credit              |   |           | 17,251  |   |   |   | 16,592 |   |
| Total residential mortgage loans                               |   |           | 91,641  |   |   |   | 98,732 |   |
|                                                           |   |           |    |   |   |   |   |   |
| Commercial loans:                                              |   |           |    |   |   |   |   |   |
|     One-to-four family investment property |   |           | 7,080   |   |   |   | 4,795 |   |
|     Multi-family real estate               |   |           | 14,085  |   |   |   | 8,226 |   |
|     Commercial real estate                 |   |           | 26,535  |   |   |   | 21,525 |   |
|     Commercial                             |   |           | 11,010  |   |   |   | 8,364 |   |
| Total commercial loans                                         |   |           | 58,710  |   |   |   | 42,910 |   |
|                                                           |   |           |    |   |   |   |   |   |
| Construction loans:                                            |   |           |    |   |   |   |   |   |
|     One-to-four family                     |   |           | 15,873  |   |   |   | 13,327 |   |
|     Multi-family                           |   |           | 7,161   |   |   |   | 2,786 |   |
|     Non-residential                        |   |           | 3,329   |   |   |   | 7,042 |   |
| Total construction loans                                       |   |           | 26,363  |   |   |   | 23,155 |   |
|                                                           |   |           |    |   |   |   |   |   |
| Consumer                                                       |   |           | 719     |   |   |   | 353 |   |
|                                                           |   |           |    |   |   |   |   |   |
| Total loans                                                    |   |           | 177,433 |   |   |   | 165,150 |   |
|                                                           |   |           |    |   |   |   |   |   |
| Other items:                                                   |   |           |    |   |   |   |   |   |
| Net deferred loan costs                                        |   |           | 110     |   |   |   | 130 |   |
| Allowance for loan losses                                      |   |           | (1,676  | ) |   |   | (1,455 | ) |
|                                                           |   |           |    |   |   |   |   |   |
| Total loans, net                                               |   | $              | 175,867 |   |   | $ | 163,825 |   |

|                         |   | Years Ended June 30, |   |
|------------------------------|--------|----------------------|--------|
|                         |   | 2010                 |   |   | 2009 |   |
|                         |   | (In thousands)       |   |
|                         |   |                 |   |   |   |   |
| Balance at beginning of year |   | $                    | 1,455  |   |   | $ | 1,212 |   |
| Provision for loan losses    |   |                 | 361    |   |   |   | 248 |   |
| Recoveries                   |   |                 | 15     |   |   |   | 10 |   |
| Charge-offs                  |   |                 | (155   | ) |   |   | (15 | ) |
|                         |   |                 |   |   |   |   |   |   |
| Balance at end of year       |   | $                    | 1,676  |   |   | $ | 1,455 |   |

----

|                                                        |   | At June 30,    |   |
|-------------------------------------------------------------|--------|----------------|--------|
|                                                        |   | 2010           |   |   | 2009 |   |
|                                                        |   | (In thousands) |   |
|                                                        |   |           |   |   |   |   |
| Impaired loans without a valuation allowance                |   | $              | 210    |   |   | $ | 282 |   |
|                                                        |   |           |   |   |   |   |   |   |
| Impaired loans with a valuation allowance                   |   |           | 160    |   |   |   | 455 |   |
|                                                        |   |           |   |   |   |   |   |   |
| Total impaired loans                                        |   | $              | 370    |   |   | $ | 737 |   |
|                                                        |   |           |   |   |   |   |   |   |
| Valuation allowance related to impaired loans               |   | $              | 87     |   |   | $ | 98 |   |
|                                                        |   |           |   |   |   |   |   |   |
| Total non-accrual loans                                     |   | $              | 160    |   |   | $ | 737 |   |
|                                                        |   |           |   |   |   |   |   |   |
| Total loans past due ninety days or more and still accruing |   | $              | -      |   |   | $ | - |   |

|                                         |   | Years Ended June 30, |   |
|----------------------------------------------|--------|----------------------|--------|
|                                         |   | 2010                 |   |   | 2009 |   |
|                                         |   | (In thousands)       |   |
|                                         |   |                 |   |   |   |   |
| Average investment in impaired loans         |   | $                    | 892    |   |   | $ | 650 |   |
|                                         |   |                 |   |   |   |   |   |   |
| Interest income recognized on impaired loans |   | $                    | 40     |   |   | $ | 14 |   |
|                                         |   |                 |   |   |   |   |   |   |
| Interest income recognized on a cash basis   |   |                 |   |   |   |   |   |   |
|     on impaired loans    |   | $                    | 15     |   |   | $ | 13 |   |

----

|                                    |   | Years Ended June 30, |   |
|-----------------------------------------|--------|----------------------|--------|
|                                    |   | 2010                 |   |   | 2009 |   |
|                                    |   | (In thousands)       |   |
|                                    |   |                 |   |   |   |   |
| Mortgage servicing rights:              |   |                 |   |   |   |   |
| Balance at beginning of period          |   | $                    | 116    |   |   | $ | - |   |
| Additions                               |   |                 | 128    |   |   |   | 116 |   |
| Disposals                               |   |                 | -      |   |   |   | - |   |
| Amortization                            |   |                 | (22    | ) |   |   | - |   |
| Balance at end of period                |   | $                    | 222    |   |   | $ | 116 |   |
|                                    |   |                 |   |   |   |   |   |   |
| Fair value of mortgage servicing assets |   | $                    | 237    |   |   | $ | 119 |   |

----

|                                               |   | At June 30,    |   | Estimated |
|----------------------------------------------------|--------|----------------|--------|-----------|
|                                               |   | 2010           |   |      | 2009 |   | Useful Lives |
|                                               |   | (In thousands) |   |      |
| Premises:                                          |   |           |   |      |   |   |   |
|     Land                       |   | $              | 279    |      |   | $ | 279 |   |   |
|     Buildings and improvements |   |           | 4,804  |      |   |   | 4,738 |   | 5 - 40 years |
| Equipment                                          |   |           | 2,185  |      |   |   | 2,103 |   | 3 - 7 years |
|                                               |   |           | 7,268  |      |   |   | 7,120 |   |   |
| Less accumulated depreciation                      |   |           |   |      |   |   |   |   |   |
|     and amortization           |   |           | (3,251 | )         |   |   | (2,908 | ) |   |
|                                               |   |           |   |      |   |   |   |   |   |
|                                               |   | $              | 4,017  |      |   | $ | 4,212 |   |   |

----

|                                                                                                                     |   | At June 30,    |    |
|--------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|
|                                                                                                                     |   | 2010           |    |   | 2009 |   |
|                                                                                                                     |   | (In thousands) |    |
|                                                                                                                     |   |           |    |   |   |   |
| Demand                                                                                                                   |   | $              | 15,432  |   |   | $ | 15,727 |   |
| NOW                                                                                                                      |   |           | 13,540  |   |   |   | 11,909 |   |
| Money market deposits                                                                                                    |   |           | 50,877  |   |   |   | 45,949 |   |
| Regular and other savings                                                                                                |   |           | 12,308  |   |   |   | 11,041 |   |
|                Total non-certificate accounts |   |           | 92,157  |   |   |   | 84,626 |   |
|                                                                                                                     |   |           |    |   |   |   |   |   |
| Term certificates less than $100,000                                                                                     |   |           | 28,141  |   |   |   | 30,962 |   |
| Term certificates of $100,000 or more                                                                                    |   |           | 26,988  |   |   |   | 25,538 |   |
|                Total certificate accounts     |   |           | 55,129  |   |   |   | 56,500 |   |
|                                                                                                                     |   |           |    |   |   |   |   |   |
|                Total deposits                 |   | $              | 147,286 |   |   | $ | 141,126 |   |

|        |   | 2010                   |   |   | 2009     |   |
|-------------|--------|------------------------|--------|--------|----------|--------|
|        |   |                   |   |   | Weighted |   |   |   |   |   | Weighted |   |
| Year Ending |   |                   |   |   | Average  |   |   |   |   |   | Average |   |
| June 30,    |   | Amount                 |   |   | Rate     |   |   | Amount |   |   | Rate |   |
|        |   | (Dollars in thousands) |   |
|        |   |                   |   |   |     |   |   |   |   |   |   |   |
| 2010        |   | $                      | -      |   |     |   | - | % |   | $ | 35,593 |   |   |   | 3.35 | % |
| 2011        |   |                   | 29,316 |   |     |   | 2.09 |   |   |   | 4,923 |   |   |   | 3.23 |   |
| 2012        |   |                   | 20,634 |   |     |   | 2.93 |   |   |   | 13,298 |   |   |   | 3.62 |   |
| 2013        |   |                   | 2,078  |   |     |   | 2.91 |   |   |   | 732 |   |   |   | 3.04 |   |
| 2014        |   |                   | 2,032  |   |     |   | 2.84 |   |   |   | 1,954 |   |   |   | 2.90 |   |
| 2015        |   |                   | 1,069  |   |     |   | 2.27 |   |   |   | - |   |   |   | - |   |
|        |   |                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|        |   | $                      | 55,129 |   |     |   | 2.47 | % |   | $ | 56,500 |   |   |   | 3.39 | % |

----

----

|                                           |   | 2010                   |   |   | 2009     |   |
|------------------------------------------------|--------|------------------------|--------|--------|----------|--------|
| Fixed Maturity:                                |   |                   |   |   | Weighted |   |   |   |   |   | Weighted |   |
| Year Ending                                    |   |                   |   |   | Average  |   |   |   |   |   | Average |   |
| June 30,                                       |   | Amount                 |   |   | Rate     |   |   | Amount |   |   | Rate |   |
|                                           |   | (Dollars in thousands) |   |
|                                           |   |                   |   |   |     |   |   |   |   |   |   |   |
| 2010                                           |   | $                      | -      |   |     |   | - | % |   | $ | 9,000 |   |   |   | 4.90 | % |
|    2011*                             |   |                   | 10,500 |   |     |   | 4.31 |   |   |   | 12,500 |   |   |   | 4.29 |   |
| 2012                                           |   |                   | 1,000  |   |     |   | 3.83 |   |   |   | 4,000 |   |   |   | 4.73 |   |
|    2013*                             |   |                   | 8,000  |   |     |   | 3.35 |   |   |   | 6,500 |   |   |   | 3.46 |   |
|    2014*                             |   |                   | 8,500  |   |     |   | 3.85 |   |   |   | 4,000 |   |   |   | 3.47 |   |
| 2015                                           |   |                   | 4,000  |   |     |   | 2.75 |   |   |   | 500 |   |   |   | 3.91 |   |
| Thereafter*                                    |   |                   | 3,600  |   |     |   | 3.65 |   |   |   | 3,600 |   |   |   | 3.65 |   |
|                                           |   |                   | 35,600 |   |     |   | 3.73 |   |   |   | 40,100 |   |   |   | 4.19 |   |
| Amortizing advance,                            |   |                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|     due March 5, 2012,     |   |                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|     requiring monthly      |   |                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|     principal and interest |   |                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|     of $5,300              |   |                   | 111    |   |     |   | 4.90 |   |   |   | 168 |   |   |   | 4.90 |   |
|                                           |   |                   |   |   |     |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   | $                      | 35,711 |   |     |   | 3.73 | % |   | $ | 40,268 |   |   |   | 4.19 | % |

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

|   | * | At June 30, 2010, includes advances callable by the FHLB prior to maturity aggregating $10,600,000 with a weighted average rate of 3.65%. |
|--------|---|-------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                                              |   | Years Ended June 30, |   |
|---------------------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                              |   | 2010                 |   |   | 2009 |   |
|                                                                                              |   | (In thousands)       |   |
| Current tax provision:                                                                            |   |                 |   |   |   |   |
|     Federal                                                                   |   | $                    | 389    |   |   | $ | 88 |   |
|     State                                                                     |   |                 | 88     |   |   |   | 22 |   |
|                                                                                              |   |                 | 477    |   |   |   | 110 |   |
| Deferred tax provision (benefit):                                                                 |   |                 |   |   |   |   |   |   |
|     Federal                                                                   |   |                 | 53     |   |   |   | 71 |   |
|     State                                                                     |   |                 | (11    | ) |   |   | - |   |
|                                                                                              |   |                 | 42     |   |   |   | 71 |   |
|                                                                                              |   |                 |   |   |   |   |   |   |
|              Total tax provision |   | $                    | 519    |   |   | $ | 181 |   |

|                                                            |   | Years Ended June 30, |   |
|-----------------------------------------------------------------|--------|----------------------|--------|
|                                                            |   | 2010                 |   |   | 2009 |   |
|                                                            |   |                 |   |   |   |   |
| Statutory rate                                                  |   |                 | 34.0   | % |   |   | 34.0 | % |
| Increase (decrease) resulting from:                             |   |                 |   |   |   |   |   |   |
|     State taxes, net of federal tax benefit |   |                 | 3.5    |   |   |   | 2.7 |   |
|     Bank-owned life insurance               |   |                 | (1.2   | ) |   |   | - |   |
|     Stock compensation plans                |   |                 | (1.0   | ) |   |   | (2.8 | ) |
|     Other, net                              |   |                 | 0.3    |   |   |   | 0.2 |   |
|                                                            |   |                 |   |   |   |   |   |   |
| Effective tax rates                                             |   |                 | 35.6   | % |   |   | 34.1 | % |

----

|                            |   | 2010           |   |   | 2009   |    |
|---------------------------------|--------|----------------|--------|--------|--------|---------|
|                            |   | (In thousands) |   |
| Deferred tax assets:            |   |           |   |   |   |    |
|     Federal |   | $         | 842    |   |   | $  | 827 |   |
|     State   |   |           | 245    |   |   |    | 211 |   |
|                            |   |           | 1,087  |   |   |    | 1,038 |   |
| Deferred tax liabilities:       |   |           |   |   |   |    |   |   |
|     Federal |   |           | (511   | )      |   |    | (413 | ) |
|     State   |   |           | (111   | )      |   |    | (86 | ) |
|                            |   |           | (622   | )      |   |    | (499 | ) |
|                            |   |           |   |   |   |    |   |   |
| Net deferred tax asset          |   | $              | 465    |   |   | $       | 539 |   |

|                                       |   | 2010           |   |   | 2009   |   |
|--------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                       |   | (In thousands) |   |
|                                       |   |           |   |   |   |   |
| Deferred compensation                      |   | $              | 366    |   |   | $      | 320 |   |
| Net unrealized gain on securities          |   |           |   |   |   |   |   |   |
|     available for sale |   |           | (105   | )      |   |   | (73 | ) |
| Depreciation and amortization              |   |           | (357   | )      |   |   | (371 | ) |
| Allowance for loan losses                  |   |           | 669    |   |   |   | 581 |   |
| Mortgage servicing rights                  |   |           | (89    | )      |   |   | (46 | )  |
| Alternative minimum tax credit             |   |           | -      |   |   |   | 52 |   |
| Other, net                                 |   |           | (19    | )      |   |   | 76 |   |
|                                       |   |           |   |   |   |   |   |   |
| Net deferred tax asset                     |   | $              | 465    |   |   | $      | 539 |   |
|                                       |   |           |   |   |   |   |   |   |

|                                                          |   | Years Ended June 30, |   |
|---------------------------------------------------------------|--------|----------------------|--------|
|                                                          |   | 2010                 |   |   | 2009 |   |
|                                                          |   | (In thousands)       |   |
|                                                          |   |                 |   |   |   |   |
| Balance at beginning of year                                  |   | $                    | 539    |   |   | $ | 694 |   |
| Deferred tax provision                                        |   |                 | (42    | ) |   |   | (71 | ) |
| Deferred tax effects of net unrealized                        |   |                 |   |   |   |   |   |   |
|     gain on securities available for sale |   |                 | (32    | ) |   |   | (84 | ) |
|                                                          |   |                 |   |   |   |   |   |   |
| Balance at end of year                                        |   | $                    | 465    |   |   | $ | 539 |   |

----

----

|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   | Minimum    |   |
|----------------------------------------|--------|------------------------|---------|--------|-------------|--------|--------|-------------------|--------|--------|-------------------|--------|--------|------------|--------|
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   | To Be Well |   |
|                                   |   |                   |    |   |        |   |   | Minimum           |   |   | Capitalized Under |   |
|                                   |   |                   |    |   |        |   |   | Capital           |   |   | Prompt Corrective |   |
|                                   |   | Actual                 |    |   | Requirement |   |   | Action Provisions |   |
|                                   |   | Amount                 |    |   | Ratio       |   |   | Amount            |   |   | Ratio             |   |   | Amount     |   |   | Ratio |   |
|                                   |   | (Dollars in thousands) |    |
| At June 30, 2010                       |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   |                   | $18,645 |   |        |   | 11.4   | %                 |   |   | $13,060           |   |   |       | 8.0    | % |   |   | $16,326 |   |   |   | 10.0 | % |
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Risk Weighted Assets |   |                   | 17,058  |   |        |   | 10.4   |              |   |   | 6,530             |   |   |       | 4.0    |   |   |   | 9,795 |   |   |   | 6.0 |   |
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Average Assets       |   |                   | 17,058  |   |        |   | 8.5    |              |   |   | 8,050             |   |   |       | 4.0    |   |   |   | 10,062 |   |   |   | 5.0 |   |
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Tangible Capital to Tangible Assets    |   |                   | 17,058  |   |        |   | 8.1    |              |   |   | 3,170             |   |   |       | 1.5    |   |   |   | N/A |   |   |   | N/A |   |
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| At June 30, 2009                       |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   |                   | $16,906 |   |        |   | 11.3   | %                 |   |   | $12,015           |   |   |       | 8.0    | % |   |   | $15,018 |   |   |   | 10.0 | % |
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Risk Weighted Assets |   |                   | 15,551  |   |        |   | 10.4   |              |   |   | 6,007             |   |   |       | 4.0    |   |   |   | 9,011 |   |   |   | 6.0 |   |
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Average Assets       |   |                   | 15,551  |   |        |   | 8.0    |              |   |   | 7,779             |   |   |       | 4.0    |   |   |   | 9,724 |   |   |   | 5.0 |   |
|                                   |   |                   |    |   |        |   |   |              |   |   |              |   |   |       |   |   |   |   |   |   |   |   |   |   |
| Tangible Capital to Tangible Assets    |   |                   | 15,551  |   |        |   | 7.7    |              |   |   | 3,016             |   |   |       | 1.5    |   |   |   | N/A |   |   |   | N/A |   |

----

----

----

| Years Ending |   |           |   |
|--------------|--------|----------------|--------|
| June 30,     |   | Amount         |   |
|         |   | (In thousands) |   |
|         |   |           |   |
| 2011         |   | $              | 76     |   |
| 2012         |   |           | 83     |   |
| 2013         |   |           | 89     |   |
| 2014         |   |           | 97     |   |
| 2015         |   |           | 104    |   |
| Thereafter   |   |           | 53     |   |
|         |   |           |   |   |
|         |   | $              | 502    |   |

|                      |   | 2010   |   |   | 2009   |   |
|---------------------------|--------|--------|--------|--------|--------|--------|
|                      |   |   |   |   |   |   |
| Allocated                 |   |   | 54,999 |   |   |   | 46,807 |   |
| Committed to be allocated |   |   | 4,096  |   |   |   | 4,096 |   |
| Unallocated               |   |   | 40,886 |   |   |   | 49,078 |   |
| Paid out to participants  |   |   | (8,613 | )      |   |   | (8,527 | ) |
|                      |   |   |   |   |   |   |   |   |
|                      |   |   | 91,368 |   |   |   | 91,454 |   |

----

|                    |   | 2010      |   |
|-------------------------|--------|-----------|--------|
|                    |   |      |   |
| Expected dividends      |   |      | -      | % |
| Expected term           |   | 6.4 years |   |
| Expected volatility     |   |      | 34     | % |
| Risk-free interest rate |   |      | 3.80   | % |

----

|                      |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   | Non-vested            |   |
|---------------------------|--------|-----------------------|--------|--------|--------------------------------------|--------|--------|-----------------------------------------------------------|--------|--------|---------------------------|--------|--------|-----------------------|--------|
|                      |   | Stock Options         |   |   | Restricted Stock                     |   |
|                      |   | Number of Shares |   |   | Weighted Average Exercise Price |   |   | Weighted Average Remaining Contractural Term (years) |   |   | Aggregate Intrinsic Value |   |   | Number of Shares |   |   | Weighted Average Grant Date Value |   |
|                      |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   |                  |   |   |   |   |
| Oustanding at beginning   |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   |                  |   |   |   |   |
|   of year       |   |                  | -      |   |                                 | $      | -      |                                                      |   |   |                      |   |   |                  |   |   | - |   |   | $ | - |   |
|                      |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   |                  |   |   |   |   |   |   |   |   |
| Granted                   |   |                  | 25,000 |   |                                 | $      | 6.72   |                                                      |   |   |                      |   |   |                  |   |   | 25,000 |   |   | $ | 5.20 |   |
|                      |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   |                  |   |   |   |   |   |   |   |   |
|                      |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   |                  |   |   |   |   |   |   |   |   |
| Forfeited                 |   |                  | (1,000 | )      |                                 | $      | 6.72   |                                                      |   |   |                      |   |   |                  |   |   | (1,000 | ) |   | $ | 5.20 |   |
|                      |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   |                  |   |   |   |   |   |   |   |   |
| Oustanding at end of year |   |                  | 24,000 |   |                                 | $      | 6.72   |                                                      |   |   | 9.64                      |   |   | $                     | -      |   |   |   | 24,000 |   |   | $ | 5.20 |   |
|                      |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   |                  |   |   |   |   |   |   |   |   |   |   |
| Options exercisable at    |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   |                  |   |   |   |   |   |   |   |   |   |   |
|   end of year   |   |                  | -      |   |                                 | $      | -      |                                                      |   |   | -                         |   |   | $                     | -      |   |   |   |   |   |   |   |   |   |
|                      |   |                  |   |   |                                 |   |   |                                                      |   |   |                      |   |   |                  |   |   |   |   |   |   |   |   |   |   |

----

|                                              |   | 2010           |   |   | 2009   |   |
|---------------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                              |   | (In thousands) |   |
|                                              |   |           |   |   |   |   |
| Commitments to grant loans                        |   | $              | 10,953 |   |   | $      | 6,762 |   |
| Unadvanced funds on home equity lines of credit   |   |           | 10,617 |   |   |   | 11,731 |   |
| Unadvanced funds on commercial lines of credit    |   |           | 2,663  |   |   |   | 2,989 |   |
| Unadvanced funds on construction loans            |   |           | 5,728  |   |   |   | 5,691 |   |
| Unadvanced funds on other unsecured personal      |   |           |   |   |   |   |   |   |
|      lines of credit     |   |           | 493    |   |   |   | 512 |   |
| Unadvanced funds on commercial real estate loans  |   |           | 70     |   |   |   | - |   |
| Unadvanced funds on residential real estate loans |   |           | 17     |   |   |   | - |   |

----

| Years Ending |   |           |   |
|--------------|--------|----------------|--------|
| June 30,     |   |  Payments |   |
|         |   | (In thousands) |   |
|         |   |           |   |
| 2011         |   | $              | 167    |   |
| 2012         |   |           | 173    |   |
| 2013         |   |           | 172    |   |
| 2014         |   |           | 171    |   |
| 2015         |   |           | 170    |   |
| Thereafter   |   |           | 1,285  |   |
|         |   |           |   |   |
|         |   | $              | 2,138  |   |

----

|                          |   | Years Ended June 30, |   |
|-------------------------------|--------|----------------------|--------|
|                          |   | 2010                 |   |   | 2009 |   |
|                          |   | (In thousands)       |   |
|                          |   |                 |   |   |   |   |
| Beginning balance             |   | $                    | 4,759  |   |   | $ | 4,769 |   |
| Originations                  |   |                 | 125    |   |   |   | 160 |   |
| Payments and change in status |   |                 | (406   | ) |   |   | (170 | ) |
|                          |   |                 |   |   |   |   |   |   |
| Ending balance                |   | $                    | 4,478  |   |   | $ | 4,759 |   |
|                          |   |                 |   |   |   |   |   |   |

| 16. | DERIVATIVE FINANCIAL INSTRUMENTS |
|-----|----------------------------------|

|   | Mortgage loan commitments |
|--------|---------------------------|

----

|   | Mortgage loan commitments (concluded) |
|--------|---------------------------------------|

|                             |   | June 30, 2010               |   |
|----------------------------------|--------|-----------------------------|--------|
|                             |   | Assets                      |   |   | Liabilities |   |
|                             |   | Balance Sheet Location |   |   | Fair Value |   |   | Balance Sheet Location |   |   | Fair Value |   |
|                             |   | (In thousands)              |   |
| Derivatives not designated       |   |                        |   |   |   |   |   |   |   |   |   |   |
| as hedging instruments:          |   |                        |   |   |   |   |   |   |   |   |   |   |
|                             |   |                        |   |   |   |   |   |   |   |   |   |   |
| Derivative loan commitments      |   | Other assets                |   |   | $ | 84 |   |   |  N/A |   |   | $ | - |   |
|                             |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Forward loan sale commitments    |   |  N/A                   |   |   |   | - |   |   | Accrued expenses and other liabilities |   |   |   | 70 |   |
|                             |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total derivatives not designated |   |                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| as hedging instruments           |   |                        |   |   |   | $ | 84 |   |   |   |   |   |   | $ | 70 |   |

----

----

----

|                                                         |   |           |   |   |    |   |   |    |   |   | Total         |   |
|--------------------------------------------------------------|--------|----------------|--------|--------|---------|--------|--------|---------|--------|--------|---------------|--------|
|                                                         |   |           |   |   |    |   |   |    |   |   | Assets        |   |
|                                                         |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | at Fair Value |   |
| At June 30, 2010                                             |   | (In thousands) |   |
|                                                         |   |           |   |   |    |   |   |    |   |   |          |   |
| Assets                                                       |   |           |   |   |    |   |   |    |   |   |          |   |
|      Securities available for sale  |   | $              | -      |   |    | $      | 10,925 |    |   | $      | -             |   |   | $ | 10,925 |   |
|      Derivative loan commitments    |   |           | -      |   |    |   | -      |    |   |   | 84            |   |   |   | 84 |   |
|         Total assets |   | $              | -      |   |    | $      | 10,925 |    |   | $      | 84            |   |   | $ | 11,009 |   |
|                                                         |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
| Liabilities                                                  |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
|      Forward loan sale commitments  |   | $              | -      |   |    | $      | -      |    |   | $      | 70            |   |   | $ | 70 |   |
|                                                         |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
|                                                         |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
| At June 30, 2009                                             |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
|                                                         |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
| Assets                                                       |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
|      Securities available for sale  |   | $              | -      |   |    | $      | 9,528  |    |   | $      | -             |   |   | $ | 9,528 |   |

----

|           |   |           |   |   |    |   |   |    |   |   | Year Ended    |   |
|----------------|--------|----------------|--------|--------|---------|--------|--------|---------|--------|--------|---------------|--------|
|           |   |           |   |   |    |   |   |    |   |   | June 30, 2010 |   |
|           |   |           |   |   |    |   |   |    |   |   | Fair Value    |   |
|           |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | Adjustments   |   |
|           |   | (In thousands) |   |
|           |   |           |   |   |    |   |   |    |   |   |          |   |
| Impaired loans |   | $              | -      |   |    | $      | -      |    |   | $      | 73            |   |   | $ | 21 |   |
|           |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
|           |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
|           |   |           |   |   |    |   |   |    |   |   |          |   |   | Year Ended |   |
|           |   |           |   |   |    |   |   |    |   |   |          |   |   | June 30, 2009 |   |
|           |   |           |   |   |    |   |   |    |   |   |          |   |   | Fair Value |   |
|           |   | Level 1        |   |   | Level 2 |   |   | Level 3 |   |   | Adjustments   |   |
|           |   | (In thousands) |   |
|           |   |           |   |   |    |   |   |    |   |   |          |   |   |   |   |   |
| Impaired loans |   | $              | -      |   |    | $      | -      |    |   | $      | 357           |   |   | $ | (51 | ) |

----

|                                                 |   | At June 30,    |    |
|------------------------------------------------------|--------|----------------|---------|
|                                                 |   | 2010           |    |   | 2009 |   |
|                                                 |   | Carrying       |    |   | Fair |   |   | Carrying |   |   | Fair |   |
|                                                 |   | Amount         |    |   | Value |   |   | Amount |   |   | Value |   |
|                                                 |   | (In thousands) |    |
| Financial assets:                                    |   |           |    |   |   |   |   |   |   |   |   |   |
|   Cash and cash equivalents                |   | $              | 7,340   |   |   | $ | 7,340 |   |   | $ | 11,356 |   |   | $ | 11,356 |   |
|   Securities available for sale            |   |           | 10,925  |   |   |   | 10,925 |   |   |   | 9,528 |   |   |   | 9,528 |   |
|   Securities held to maturity              |   |           | 3,718   |   |   |   | 3,927 |   |   |   | 4,959 |   |   |   | 5,101 |   |
|   FHLB stock                               |   |           | 3,111   |   |   |   | 3,111 |   |   |   | 3,111 |   |   |   | 3,111 |   |
|   Loans held for sale                      |   |           | 1,559   |   |   |   | 1,559 |   |   |   | 269 |   |   |   | 274 |   |
|   Loans, net                               |   |           | 175,867 |   |   |   | 181,276 |   |   |   | 163,825 |   |   |   | 164,670 |   |
|   Accrued interest receivable              |   |           | 794     |   |   |   | 794 |   |   |   | 714 |   |   |   | 714 |   |
|   Capitalized mortgage servicing rights    |   |           | 222     |   |   |   | 237 |   |   |   | 116 |   |   |   | 119 |   |
|                                                 |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                               |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Deposits                                 |   |           | 147,286 |   |   |   | 148,511 |   |   |   | 141,126 |   |   |   | 143,018 |   |
|   Securities sold under agreements         |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       to repurchase    |   |           | 407     |   |   |   | 407 |   |   |   | 520 |   |   |   | 520 |   |
|   Short-term FHLB advances                 |   |           | 7,250   |   |   |   | 7,250 |   |   |   | - |   |   |   | - |   |
|   Long-term FHLB advances                  |   |           | 35,711  |   |   |   | 36,430 |   |   |   | 40,268 |   |   |   | 40,967 |   |
|   Accrued interest payable                 |   |           | 115     |   |   |   | 115 |   |   |   | 148 |   |   |   | 148 |   |
|                                                 |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| On-balance sheet derivative                          |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      financial instruments: |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Derivative loan commitments              |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      - Assets               |   |           | 84      |   |   |   | 84 |   |   |   | - |   |   |   | - |   |
|   Forward loan sale commitments            |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      - Liabilities          |   |           | 70      |   |   |   | 70 |   |   |   | - |   |   |   | - |   |

----

| BALANCE SHEETS                                                                                                                       |
|--------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                 |   | At June 30, |   |
|                                                                                                                                 |   | 2010 |   |   | 2009 |   |
|                                                                                                                                 |   | (In thousands) |   |
|                                                                                                                                 |   |   |   |   |   |   |
| ASSETS                                                                                                                               |
|                                                                                                                                 |   |   |   |   |   |   |
| Non-interest bearing deposit in the Bank                                                                                             |   | $ | 635 |   |   | $ | 1,083 |   |
| Loan to the Bank ESOP                                                                                                                |   |   | 502 |   |   |   | 573 |   |
| Investment in subsidiary                                                                                                             |   |   | 17,251 |   |   |   | 15,687 |   |
| Other assets                                                                                                                         |   |   | 1 |   |   |   | 1 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
|                Total assets                               |   | $ | 18,389 |   |   | $ | 17,344 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                                                 |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
| Other liabilities                                                                                                                    |   | $ | 21 |   |   | $ | 27 |   |
| Stockholders' equity                                                                                                                 |   |   | 18,368 |   |   |   | 17,317 |   |
|                                                                                                                                 |   |   |   |   |   |   |   |   |
|                Total liabilities and stockholders' equity |   | $ | 18,389 |   |   | $ | 17,344 |   |

| STATEMENTS OF INCOME                                 |   |
|------------------------------------------------------|--------|
|                                                 |   | Years Ended June 30, |   |
|                                                 |   | 2010 |   |   | 2009 |   |
|                                                 |   | (In thousands) |   |
|                                                 |   |   |   |   |   |   |
| Interest income -ESOP loan                           |   | $ | 46 |   |   | $ | 51 |   |
| Non-interest expense                                 |   |   | 66 |   |   |   | 51 |   |
| Loss before income taxes and equity in undistributed |   |   |   |   |   |   |   |   |
|      net income of the Bank |   |   | (20 | ) |   |   | - |   |
| Applicable income tax benefit                        |   |   | 7 |   |   |   | - |   |
|                                                 |   |   |   |   |   |   |   |   |
| Loss before equity in undistributed net income       |   |   |   |   |   |   |   |   |
|     of subsidiary                |   |   | (13 | ) |   |   | - |   |
|                                                 |   |   |   |   |   |   |   |   |
| Equity in undistributed net income of subsidiary     |   |   | 952 |   |   |   | 350 |   |
|                                                 |   |   |   |   |   |   |   |   |
| Net income                                           |   | $ | 939 |   |   | $ | 350 |   |

----

|                                                                                                                                                  |   | Years Ended June 30, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|
|                                                                                                                                                  |   | 2010                 |   |   | 2009 |   |
|                                                                                                                                                  |   | (In thousands)       |   |
|                                                                                                                                                  |   |                 |   |   |   |   |
| Cash flows from operating activities:                                                                                                                 |   |                 |   |   |   |   |
| Net income                                                                                                                                            |   | $                    | 939    |   |   | $ | 350 |   |
|     Adjustments to reconcile net income to net cash                                                                               |   |                 |   |   |   |   |   |   |
|         provided by operating activities:                                                                     |   |                 |   |   |   |   |   |   |
| Repayment of ESOP loan                                                                                                                                |   |                 | 71     |   |   |   | 65 |   |
| Equity in undistributed income of subsidiary                                                                                                          |   |                 | (952   | ) |   |   | (350 | ) |
| Other, net                                                                                                                                            |   |                 | (6     | ) |   |   | (4 | ) |
|                   Net cash provided by operating activities |   |                 | 52     |   |   |   | 61 |   |
|                                                                                                                                                  |   |                 |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                 |   |                 |   |   |   |   |   |   |
| Capital contribution to the Bank                                                                                                                      |   |                 | (500   | ) |   |   | (750 | ) |
|                   Net cash used by investing activities     |   |                 | (500   | ) |   |   | (750 | ) |
|                                                                                                                                                  |   |                 |   |   |   |   |   |   |
| Net change in cash and cash equivalents                                                                                                               |   |                 | (448   | ) |   |   | (689 | ) |
|                                                                                                                                                  |   |                 |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                                                                                        |   |                 | 1,083  |   |   |   | 1,772 |   |
|                                                                                                                                                  |   |                 |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                                                                              |   | $                    | 635    |   |   | $ | 1,083 |   |
|                                                                                                                                                  |   |                 |   |   |   |   |   |   |

----

|                                              |   | Years Ended June 30,                  |   |
|---------------------------------------------------|--------|---------------------------------------|--------|
|                                              |   | 2010                                  |   |   | 2009 |   |
|                                              |   | Fourth                                |   |   | Third |   |   | Second |   |   | First |   |   | Fourth |   |   | Third |   |   | Second |   |   | First |   |
|                                              |   | Quarter                               |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                                              |   | (In thousands, except per share data) |   |
|                                              |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and dividend income                      |   | $                                     | 2,806  |   |   | $ | 2,694 |   |   | $ | 2,622 |   |   | $ | 2,612 |   |   | $ | 2,638 |   |   | $ | 2,677 |   |   | $ | 2,686 |   |   | $ | 2,550 |   |
| Interest expense                                  |   |                                  | 872    |   |   |   | 864 |   |   |   | 913 |   |   |   | 1,031 |   |   |   | 1,120 |   |   |   | 1,217 |   |   |   | 1,204 |   |   |   | 1,168 |   |
|                                              |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                               |   |                                  | 1,934  |   |   |   | 1,830 |   |   |   | 1,709 |   |   |   | 1,581 |   |   |   | 1,518 |   |   |   | 1,460 |   |   |   | 1,482 |   |   |   | 1,382 |   |
| Provision for loan losses                         |   |                                  | 76     |   |   |   | 89 |   |   |   | 163 |   |   |   | 33 |   |   |   | 66 |   |   |   | 4 |   |   |   | 91 |   |   |   | 87 |   |
|                                              |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income, after                        |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     provision for loan losses |   |                                  | 1,858  |   |   |   | 1,741 |   |   |   | 1,546 |   |   |   | 1,548 |   |   |   | 1,452 |   |   |   | 1,456 |   |   |   | 1,391 |   |   |   | 1,295 |   |
| Non-interest income                               |   |                                  | 251    |   |   |   | 310 |   |   |   | 285 |   |   |   | 239 |   |   |   | 319 |   |   |   | 218 |   |   |   | 185 |   |   |   | 148 |   |
| Non-interest expenses                             |   |                                  | 1,596  |   |   |   | 1,599 |   |   |   | 1,597 |   |   |   | 1,528 |   |   |   | 1,546 |   |   |   | 1,566 |   |   |   | 1,416 |   |   |   | 1,405 |   |
|                                              |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income before income taxes                        |   |                                  | 513    |   |   |   | 452 |   |   |   | 234 |   |   |   | 259 |   |   |   | 225 |   |   |   | 108 |   |   |   | 160 |   |   |   | 38 |   |
|                                              |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax provision                              |   |                                  | 178    |   |   |   | 166 |   |   |   | 74 |   |   |   | 101 |   |   |   | 69 |   |   |   | 33 |   |   |   | 53 |   |   |   | 26 |   |
|                                              |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                        |   | $                                     | 335    |   |   | $ | 286 |   |   | $ | 160 |   |   | $ | 158 |   |   | $ | 156 |   |   | $ | 75 |   |   | $ | 107 |   |   | $ | 12 |   |
|                                              |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income per share:                                 |   |                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic and diluted                                 |   | $                                     | 0.13   |   |   | $ | 0.11 |   |   | $ | 0.06 |   |   | $ | 0.06 |   |   | $ | 0.06 |   |   | $ | 0.03 |   |   | $ | 0.04 |   |   | $ | - |   |

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| Richard F. Spencer, Chairman    | Thomas L. Hamelin |
|---------------------------------|-------------------|
| Mary L. Williams, Vice Chairman | Marybeth McInnis  |
| Robert E. Balletto              | J. Richard Murphy |
| Keith N. Congdon                | Kathleen R. Sachs |
| Anthony S. Conte, Jr.           | David A. Splaine  |
| Stephen L. Flynn                | Robert T. Wyman   |
|                            | John H. Yeaton    |

| INDEPENDENT REGISTERED         |                                    |
|--------------------------------|-----------------------------------------|
| PUBLIC ACCOUNTING FIRM         | LEGAL COUNSEL                           |
| Wolf & Company, P.C.       | Luse Gorman Pomerenk & Schick, P.C. |
| 99 High Street                 | 5335 Wisconsin Avenue, N.W.             |
| Boston, MA 02110               | Suite 780                               |
| (617) 439-9700                 | Washington, DC 20015                    |
|                           | (202) 274-2000                          |
|                           |                                    |
|                           |                                    |
| REGISTRAR AND TRANSFER AGENT   | STOCK LISTING                           |
| Registrar and Transfer Company | OTC BULLETIN BOARD                      |
| 10 Commerce Drive              | SYMBOL: GTWN                            |
| Cranford, NJ 07016             | WWW.OTCBB.COM                           |
| (800) 368-5948                 |                                    |
| www.rtco.com                   |                                    |

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|       |          |   |
|------------|---------------|--------|
| Georgetown | North Andover | Rowley |