----

| For      the Quarter Ended March 31, 2008 | Commission      file number 000-29599 |
|-------------------------------------------|---------------------------------------|

| Connecticut                   | 06-1559137                                   |
|-------------------------------|----------------------------------------------|
| (State      of incorporation) | (I.R.S.      Employer Identification Number) |

----

|          |                                                            |  Page     |
|---------------|-----------------------------------------------------------------|----------------|
|          |                                                            |           |
| Part      I   | FINANCIAL      INFORMATION                                      |           |
|          |                                                            |           |
| Item      1.  | Consolidated      Financial Statements                          | 3              |
|          |                                                            |           |
| Item      2.  | Management’s      Discussion and Analysis of              |           |
|          | Financial      Condition and Results of Operations              | 19             |
|          |                                                            |           |
| Item      3.  | Quantitative      and Qualitative Disclosures about Market Risk |  31       |
|          |                                                            |           |
| Item      4.  | Controls      and Procedures                                    | 34             |
|          |                                                            |           |
| Part      II  | OTHER      INFORMATION                                          |           |
|          |                                                            |           |
| Item      1A. | Risk      Factors                                               |        34 |
|          |                                                            |           |
| Item      6.  | Exhibits                                                        | 35             |

----

|                                                                                                                                      | March      31, 2008                                                                                                                                                       |   | December      31, 2007                                                                                                                                                    |
|-------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                      | (Unaudited)                                                                                                                                                               |   |                                                                                                                                                                      |
| ASSETS                                                                                                                                    |                                                                                                                                                                      |   |                                                                                                                                                                      |
| Cash      and due from banks                                                                                                              |  $          10,671,404                                                                                             |   |  $            2,760,246                                                                                  |
| Federal      funds sold                                                                                                                   |              12,600,000                                                                                  |   |              11,000,000                                                                                  |
| Short      term investments                                                                                                               |                5,455,546                                                                       |   |                   251,668                                                       |
|      Cash      and cash equivalents                                                                              |            28,726,950                                                                                              |   |            14,011,914                                                                                              |
|                                                                                                                                      |                                                                                                                                                                      |   |                                                                                                                                                                      |
| Available      for sale securities (at fair value)                                                                                        |              60,831,388                                                                                  |   |              67,290,040                                                                                  |
| Federal      Reserve Bank stock                                                                                                           |                1,913,200                                                                       |   |                1,911,700                                                                       |
| Federal      Home Loan Bank stock                                                                                                         |                2,856,100                                                                       |   |                2,656,100                                                                       |
| Loans      receivable (net of allowance for loan losses:  2008      $6,149,620                                                  |                                                                                                                                                                      |   |                                                                                                                                                                      |
|      2007      $5,672,620)                                                                                       |            754,649,235                                                                                             |   |            685,885,990                                                                                             |
| Accrued      interest receivable                                                                                                          |                5,029,539                                                                       |   |                4,576,018                                                                       |
| Premises      and equipment                                                                                                               |                7,976,472                                                                       |   |                7,805,565                                                                       |
| Deferred      tax asset, net                                                                                                              |                2,626,501                                                                       |   |                2,788,024                                                                       |
| Goodwill      and other intangible assets                                                                                                 |                1,464,653                                                                       |   |                1,469,075                                                                       |
| Cash      surrender value of life insurance                                                                                               |              18,424,926                                                                                  |   |              18,193,684                                                                                  |
| Other      assets                                                                                                                         |                1,153,867                                                                       |   |                   942,144                                                       |
|           Total      assets                                                             |  $     885,652,831                                                                                                                          |   |  $     807,530,254                                                                                                                          |
|                                                                                                                                      |                                                                                                                                                                      |   |                                                                                                                                                                      |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                                                 |                                                                                                                                                                      |   |                                                                                                                                                                      |
| Liabilities                                                                                                                               |                                                                                                                                                                      |   |                                                                                                                                                                      |
|      Deposits:                                                                                                   |                                                                                                                                                                      |   |                                                                                                                                                                      |
|           Noninterest      bearing deposits                                             |  $          52,594,143                                                                                             |   |  $          51,925,991                                                                                             |
|           Interest      bearing deposits                                                |            712,994,997                                                                                             |   |            620,473,418                                                                                             |
|                Total      deposits                             |         765,589,140                                                                                                               |   |         672,399,409                                                                                                               |
|      Repurchase      agreements                                                                                  |                7,000,000                                                                       |   |                7,000,000                                                                       |
|      Federal      Home Loan Bank borrowings                                                                      |              35,000,000                                                                                  |   |              47,500,000                                                                                  |
|      Junior      subordinated debt owed to unconsolidated trust                                                  |                8,248,000                                                                       |   |                8,248,000                                                                       |
|      Accrued      expenses and other liabilities                                                                 |                2,729,177                                                                       |   |                5,547,478                                                                       |
|                Total      liabilities                          |         818,566,317                                                                                                               |   |         740,694,887                                                                                                               |
|                                                                                                                                      |                                                                                                                                                                      |   |                                                                                                                                                                      |
| Shareholders'      equity                                                                                                                 |                                                                                                                                                                      |   |                                                                                                                                                                      |
|      Preferred      stock:  1,000,000 shares authorized; no shares      issued                         |                             - |   |                             - |
|      Common      stock, $2 par value: 60,000,000 shares authorized; shares                                       |                                                                                                                                                                      |   |                                                                                                                                                                      |
|      issued      and outstanding:  2008 - 4,751,844  2007 -      4,746,844                   |                9,503,688                                                                       |   |                9,493,688                                                                       |
|      Additional      paid in capital                                                                             |              49,589,669                                                                                  |   |              49,549,119                                                                                  |
|      Retained      earnings                                                                                      |                7,783,119                                                                       |   |                7,846,060                                                                       |
|      Accumulated      other comprehensive income - net unrealized gain                                           |                                                                                                                                                                      |   |                                                                                                                                                                      |
|           (loss)      on available for sale securities, net of taxes                    |                   210,038                                                       |   |                    (53,500)                                                |
|                Total      shareholders' equity                 |            67,086,514                                                                                              |   |            66,835,367                                                                                              |
|                Total      liabilities and shareholders' equity |  $     885,652,831                                                                                                                          |   |  $     807,530,254                                                                                                                          |

----

|                              | Three      Months Ended March 31,                                                                                  |
|-----------------------------------|--------------------------------------------------------------------------------------------------------------------|
|                              | 2008                                                                                                               | 2007 |
|                              |                                                                                                               |   |
| Interest      and Dividend Income |                                                                                                               |   |
|                              | Interest      and fees on loans                                                                                    |  $        13,322,161 |  $        10,336,121 |
|                              | Interest      and dividends on investment securities                                                               |                 922,104 |                 1,015,259 |
|                              | Interest      on federal funds sold and other cash equivalents                                                     |                 54,411 |                 213,228 |
|                              |                                                                                                               | Total      interest and dividend income |          14,298,676 |          11,564,608 |
|                              |                                                                                                               |   |   |   |
| Interest      Expense             |                                                                                                               |   |
|                              | Interest      on deposits                                                                                          |              7,609,656 |              5,693,242 |
|                              | Interest      on Federal Home Loan Bank borrowings                                                                 |                 301,270 |                   98,450 |
|                              | Interest      on subordinated debt                                                                                 |                 160,091 |                 171,398 |
|                              | Interest      on other borrowings                                                                                  |                   79,649 |                             - |
|                              |                                                                                                               | Total      interest expense |            8,150,666 |            5,963,090 |
|                              |                                                                                                               |   |   |   |
|                              |                                                                                                               | Net      interest income |            6,148,010 |            5,601,518 |
|                              |                                                                                                               |   |   |   |
| Provision      for Loan Losses    |                 477,000            |                             - |
|                              |                                                                                                               |   |   |   |
|                              |                                                                                                               | Net      interest income after |   |   |
|                              |                                                                                                               |      provision      for loan losses |            5,671,010 |            5,601,518 |
|                              |                                                                                                               |   |   |   |
| Noninterest      Income           |                                                                                                               |   |
|                              | Mortgage      brokerage referral fees                                                                              |                   54,114 |                 288,334 |
|                              | Loan      origination & processing fees                                                                        |                 106,024 |                   48,602 |
|                              | Fees      and service charges                                                                                      |                 250,856 |                 181,342 |
|                              | Other      income                                                                                                  |                 342,745 |                   66,736 |
|                              |                                                                                                               | Total      noninterest income |               753,739 |               585,014 |
|                              |                                                                                                               |   |   |   |
| Noninterest      Expenses         |                                                                                                               |   |
|                              | Salaries      and benefits                                                                                         |              3,311,051 |              3,091,955 |
|                              | Occupancy      and equipment expense, net                                                                          |              1,296,919 |                 947,064 |
|                              | Data      processing and other outside services                                                                    |                 466,349 |                 412,329 |
|                              | Professional      services                                                                                         |                 223,376 |                 136,335 |
|                              | Advertising      and promotional expenses                                                                          |                 186,995 |                 199,302 |
|                              | Loan      administration and processing expenses                                                                   |                   59,519 |                   38,819 |
|                              | Regulatory      assessments                                                                                        |                 169,410 |                   64,455 |
|                              | Other      real estate operations                                                                                  |                             - |                    (6,962) |
|                              | Other      noninterest expenses                                                                                    |                 508,463 |                 459,816 |
|                              |                                                                                                               | Total      noninterest expenses |            6,222,082 |            5,343,113 |
|                              |                                                                                                               |   |   |   |
|                              |                                                                                                               | Income      before income taxes |               202,667 |               843,419 |
|                              |                                                                                                               |   |   |   |
| Provision      for Income Taxes   |                   52,000 |                 327,000 |
|                              |                                                                                                               |   |   |   |
|                              |                                                                                                               | Net      income |  $           150,667 |  $           516,419 |
|                              |                                                                                                               |   |   |   |
|                              |                                                                                                               | Basic      income Per Share |  $                0.030 |  $                  0.11 |
|                              |                                                                                                               |   |   |   |
|                              |                                                                                                               | Diluted      income Per Share |  $                0.030 |  $                  0.11 |
|                              |                                                                                                               |   |   |   |
|                              |                                                                                                               | Dividends      per share |  $                0.045 |  $                0.045 |

----

|                                                                |   | Three      Months Ended |    |
|---------------------------------------------------------------------|--------|-------------------------|---------|
|                                                                |   | March      31,          |    |
|                                                                |   | 2008                    |    |   | 2007 |   |
|                                                                |   |                    |    |   |   |   |
| Net      income                                                     |   | $                       | 150,667 |   |   | $ | 516,419 |   |
|                                                                |   |                    |    |   |   |   |   |   |
| Unrealized      holding gains on securities:                        |   |                    |    |   |   |   |   |   |
|      Unrealized      holding gains arising |   |                    |    |   |   |   |   |   |
|      during      the period, net of taxes  |   |                    | 263,538 |   |   |   | 222,110 |   |
|                                                                |   |                    |    |   |   |   |   |   |
| Comprehensive      income                                           |   | $                       | 414,205 |   |   | $ | 738,529 |   |

----

|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   | Accumulated   |      |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------|--------|----------------|-----------|--------|--------|--------|-----------|------------|--------|--------|------------|--------|--------|---------------|-----------|--------|--------|--------|
|                                                                                                                      |   |           |      |   |   |   |      | Additional |   |   |       |   |   | Other         |      |   |   |   |
|                                                                                                                      |   | Number      of |      |   | Common |   |      | Paid-In    |   |   | Retained   |   |   | Comprehensive |      |   |   |   |
|                                                                                                                      |   | Shares         |      |   | Stock  |   |      | Capital    |   |   | Earnings   |   |   | Gain (Loss)   |      |   | Total  |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |
| Three      months ended March 31, 2007                                                                                    |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |
| Balance      at December 31, 2006                                                                                         |   |           | 4,739,494 |   |   | $      | 9,478,988 |       |   | $      | 49,463,307 |   |   | $             | 6,022,012 |   |   | $      | (680,962 | ) |   | $ | 64,283,345 |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Comprehensive      income                                                                                                 |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
|   Net      income                                                                                               |   |           |      |   |   |   |      |       |   |   |       |   |   |          | 516,419   |   |   |   |   |   |   |   | 516,419 |   |
|   Unrealized      holding gain on available for                                                                 |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |
|      sale      securities, net of taxes                                                          |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   | 222,110 |   |   |   | 222,110 |   |
|                Total      comprehensive income |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   | 738,529 |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Dividends                                                                                                                 |   |           |      |   |   |   |      |       |   |   |       |   |   |          | (213,278  | )      |   |   |   |   |   |   | (213,278 | ) |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Balance,      March 31, 2007                                                                                              |   |           | 4,739,494 |   |   | $      | 9,478,988 |       |   | $      | 49,463,307 |   |   | $             | 6,325,153 |   |   | $      | (458,852 | ) |   | $ | 64,808,596 |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Three      months ended March 31, 2008                                                                                    |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2007                                                                                         |   |           | 4,746,844 |   |   | $      | 9,493,688 |       |   | $      | 49,549,119 |   |   | $             | 7,846,060 |   |   | $      | (53,500 | ) |   | $ | 66,835,367 |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Comprehensive      income                                                                                                 |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
|   Net      income                                                                                               |   |           |      |   |   |   |      |       |   |   |       |   |   |          | 150,667   |   |   |   |   |   |   |   | 150,667 |   |
|   Unrealized      holding gain on available for                                                                 |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |
|      sale      securities, net of taxes                                                          |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   | 263,538 |   |   |   | 263,538 |   |
|                Total      comprehensive income |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   | 414,205 |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Dividends                                                                                                                 |   |           |      |   |   |   |      |       |   |   |       |   |   |          | (213,608  | )      |   |   |   |   |   |   | (213,608 | ) |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Issuance      of capital stock                                                                                            |   |           | 5,000     |   |   |   | 10,000    |       |   |   | 40,550     |   |   |          |      |   |   |   |   |   |   |   | 50,550 |   |
|                                                                                                                      |   |           |      |   |   |   |      |       |   |   |       |   |   |          |      |   |   |   |   |   |   |   |   |   |
| Balance,      March 31, 2008                                                                                              |   |           | 4,751,844 |   |   | $      | 9,503,688 |       |   | $      | 49,589,669 |   |   | $             | 7,783,119 |   |   | $      | 210,038 |   |   | $ | 67,086,514 |   |

----

|                                                                                  |   | Three      Months Ended |         |
|---------------------------------------------------------------------------------------|--------|-------------------------|--------------|
|                                                                                  |   | March      31,          |         |
|                                                                                  |   | 2008                    |         |   | 2007 |   |
|                                                                                  |   |                    |         |   |   |   |
| Cash      Flows from Operating Activities                                             |   |                    |         |   |   |   |
| Net      income                                                                       |   | $                       | 150,667      |   |   | $ | 516,419 |   |
| Adjustments      to reconcile net income to net cash                                  |   |                    |         |   |   |   |   |   |
| provided      by operating activities:                                                |   |                    |         |   |   |   |   |   |
| Amortization      and accretion of investment premiums and discounts, net             |   |                    | 43,444       |   |   |   | 48,349 |   |
| Provision      for loan losses                                                        |   |                    | 477,000      |   |   |   | - |   |
| Amortization      of core deposit intangible                                          |   |                    | 4,422        |   |   |   | 4,644 |   |
| Earnings      on cash surrender value of life insurance                               |   |                    | (231,242     | ) |   |   | - |   |
| Depreciation      and amortization                                                    |   |                    | 386,311      |   |   |   | 236,919 |   |
| Loss      on disposal of bank premises and equipment                                  |   |                    | 46           |   |   |   | 137 |   |
| Changes      in assets and liabilities:                                               |   |                    |         |   |   |   |   |   |
|      Increase      in deferred loan fees                     |   |                    | 19,208       |   |   |   | 22,793 |   |
|      Increase      in accrued interest receivable            |   |                    | (453,521     | ) |   |   | (231,202 | ) |
|      Increase      in other assets                           |   |                    | (211,723     | ) |   |   | (158,450 | ) |
|      Decrease      in accrued expenses and other liabilities |   |                    | (2,818,301   | ) |   |   | (1,187,250 | ) |
|      Net      cash used in operating activities              |   |                    | (2,633,689   | ) |   |   | (747,641 | ) |
|                                                                                  |   |                    |         |   |   |   |   |   |
| Cash      Flows from Investing Activities                                             |   |                    |         |   |   |   |   |   |
| Purchase      of available for sale securities                                        |   |                    | (8,366,036   | ) |   |   | (3,000,125 | ) |
| Principal      repayments on available for sale securities                            |   |                    | 3,206,305    |   |   |   | 3,663,353 |   |
| Proceeds      from redemptions of available for sale securities                       |   |                    | 12,000,000   |   |   |   | - |   |
| Purchase      of Federal Reserve Bank Stock                                           |   |                    | (1,500       | ) |   |   | - |   |
| Purchase      of Federal Home Loan Bank Stock                                         |   |                    | (200,000     | ) |   |   | - |   |
| Net      increase in loans                                                            |   |                    | (69,259,453  | ) |   |   | (41,876,500 | ) |
| Purchase      of bank premises and equipment                                          |   |                    | (557,264     | ) |   |   | (2,515,429 | ) |
|      Net      cash used in investing activities              |   |                    | (63,177,948  | ) |   |   | (43,728,701 | ) |
|                                                                                  |   |                    |         |   |   |   |   |   |
| Cash      Flows from Financing Activities                                             |   |                    |         |   |   |   |   |   |
| Net      decrease in demand, savings and money market deposits                        |   |                    | 12,857,202   |   |   |   | 10,987,458 |   |
| Net      increase in time certificates of deposits                                    |   |                    | 80,332,529   |   |   |   | 67,841,037 |   |
| Proceeds      from FHLB borrowings                                                    |   |                    | 111,000,000  |   |   |   | - |   |
| Principal      repayments of FHLB borrowings                                          |   |                    | (123,500,000 | ) |   |   | - |   |
| Proceeds      from issuance of common stock                                           |   |                    | 50,550       |   |   |   | - |   |
| Dividends      paid on common stock                                                   |   |                    | (213,608     | ) |   |   | (213,278 | ) |
|      Net      cash provided by financing activities          |   |                    | 80,526,673   |   |   |   | 78,615,217 |   |
|                                                                                  |   |                    |         |   |   |   |   |   |
|      Net      increase in cash and cash equivalents          |   |                    | 14,715,036   |   |   |   | 34,138,875 |   |

----

|                                                                         |   | Three      Months Ended |       |
|------------------------------------------------------------------------------|--------|-------------------------|------------|
|                                                                         |   | March      31,          |       |
|                                                                         |   | 2008                    |       |   | 2007 |   |
|                                                                         |   |                    |       |   |   |   |
| Cash      and cash equivalents                                               |   |                    |       |   |   |   |
| Beginning                                                                    |   |                    | 14,011,914 |   |   |   | 55,474,539 |   |
|                                                                         |   |                    |       |   |   |   |   |   |
| Ending                                                                       |   | $                       | 28,726,950 |   |   | $ | 89,613,414 |   |
|                                                                         |   |                    |       |   |   |   |   |   |
|                                                                         |   |                    |       |   |   |   |   |   |
| Supplemental      Disclosures of Cash Flow Information                       |   |                    |       |   |   |   |   |   |
| Cash      paid for:                                                          |   |                    |       |   |   |   |   |   |
|      Interest                                       |   | $                       | 8,102,629  |   |   | $ | 5,953,409 |   |
|                                                                         |   |                    |       |   |   |   |   |   |
|      Income      taxes                              |   | $                       | 352,599    |   |   | $ | 195,000 |   |
|                                                                         |   |                    |       |   |   |   |   |   |
| Supplemental      disclosures of noncash investing and financing activities: |   |                    |       |   |   |   |   |   |
|                                                                         |   |                    |       |   |   |   |   |   |
| Unrealized      holding gain on available for sale                           |   |                    |       |   |   |   |   |   |
| securities      arising during the period                                    |   | $                       | 425,061    |   |   | $ | 358,241 |   |
|                                                                         |   |                    |       |   |   |   |   |   |
| Dividends      declared on common stock                                      |   | $                       | 213,608    |   |   | $ | 213,278 |   |

----

|                                                     |   | March      31,                                                                                            | December      31,                                                                                         |
|----------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------|
|                                                     |   | 2008                                                                                                      | 2007                                                                                                      |
|                                                     |   |                                                                                                      |                                                                                                      |
| U.      S. Government sponsored                          |   |                                                                                                      |                                                                                                      |
|   agency      obligations                      |   |  $             6,004,629            |  $           16,924,648                       |
| U.      S. Government Agency and sponsored               |   |                                                                                                      |                                                                                                      |
|    agency      mortgage-backed securities |   |               46,785,585            |               41,325,870            |
| Money      market preferred                              |   |                                                                                                      |                                                                                                      |
|   equity      securities                       |   |                 8,041,174 |                 9,039,522 |
| Total      Available for Sale Securities                 |   |  $           60,831,388                       |  $           67,290,040                       |

----

|                                                     |                                                                                    | Gross                                                                                                                           | Gross                                                                                                                           |                                                                                    |
|----------------------------------------------------------|-----------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------|
|                                                     | Amortized                                                                               | Unrealized                                                                                                                      | Unrealized                                                                                                                      | Fair                                                                                    |
|                                                     | Cost                                                                                    | Gains                                                                                                                           | Losses                                                                                                                          | Value                                                                                   |
| U.      S. Government sponsored                          |                                                                                    |                                                                                                                            |                                                                                                                            |                                                                                    |
|    agency      obligations                |  $          6,000,000            |  $           4,629                                                  |  $                  -            |  $          6,004,629            |
| U.      S. Government Agency and sponsored               |                                                                                    |                                                                                                                            |                                                                                                                            |                                                                                    |
|    agency      mortgage-backed securities |            46,451,442            |           413,639                                                             |           (79,496)                                                            |            46,785,585            |
| Money      market preferred                              |                                                                                    |                                                                                                                            |                                                                                                                            |                                                                                    |
|   equity      securities                       |              8,041,174 |                      - |                      - |              8,041,174 |
| Total      Available For Sale Securities                 |  $        60,492,616                       |  $       418,268                                                                        |  $       (79,496)                                                                       |  $        60,831,388                       |

----

|                                             |   | March      31, |        |   | December      31, |   |
|--------------------------------------------------|--------|----------------|-------------|--------|-------------------|--------|
|                                             |   | 2008           |        |   | 2007              |   |
| Real      Estate                                 |   |           |        |   |              |   |
|    Commercial                     |   | $              | 257,537,069 |   |              | $      | 233,121,685 |   |
|    Residential                    |   |           | 125,402,792 |   |              |   | 110,154,838 |   |
|    Construction                   |   |           | 275,825,146 |   |              |   | 254,296,326 |   |
|    Construction      to permanent |   |           | 37,747,013  |   |              |   | 37,701,509 |   |
| Commercial                                       |   |           | 28,786,578  |   |              |   | 27,494,531 |   |
| Consumer      installment                        |   |           | 1,386,495   |   |              |   | 1,270,360 |   |
| Consumer      home equity                        |   |           | 35,769,942  |   |              |   | 29,154,498 |   |
| Total      Loans                                 |   |           | 762,455,035 |   |              |   | 693,193,747 |   |
| Premiums      on purchased loans                 |   |           | 193,970     |   |              |   | 195,805 |   |
| Net      deferred fees                           |   |           | (1,850,150  | )      |              |   | (1,830,942 | ) |
| Allowance      for loan losses                   |   |           | (6,149,620  | )      |              |   | (5,672,620 | ) |
| Loans      receivable, net                       |   | $              | 754,649,235 |   |              | $      | 685,885,990 |   |

|   |                                                                  |   | Three      months ending |   |   |
|--------|-----------------------------------------------------------------------|--------|--------------------------|--------|--------|
|   |                                                                  |   | March      31,           |   |   |
|   | (Thousands      of dollars)                                           |   | 2008                     |   |   | 2007 |   |   |
|   |                                                                  |   |                     |   |   |   |   |   |
|   | Balance      at beginning of period                                   |   | $                        | 5,673  |   |   | $ | 5,630 |   |   |
|   | Charge-offs                                                           |   |                     | -      |   |   |   | - |   |   |
|   | Recoveries                                                            |   |                     | -      |   |   |   | - |   |   |
|   | Net      (charge-offs) recoveries                                     |   |                     | -      |   |   |   | - |   |   |
|   | Provision      charged to operations                                  |   |                     | 477    |   |   |   | - |   |   |
|   | Balance      at end of period                                         |   | $                        | 6,150  |   |   | $ | 5,630 |   |   |
|   |                                                                  |   |                     |   |   |   |   |   |   |   |
|   | Ratio      of net (charge-offs) recoveries                            |   |                     |   |   |   |   |   |   |   |
|   |      during      the period to average loans |   |                     |   |   |   |   |   |   |   |
|   |      outstanding      during the period.     |   |                     | 0.00   | %      |   |   | 0.00 | % |   |

----

|                                                                     |   | March      31, |   December      31, |
|--------------------------------------------------------------------------|--------|----------------|-------------------------------|
|                                                                     |   | 2008           |                          |   | 2007 |   |
|                                                                     |   |           |                          |   |   |   |
| Noninterest      bearing                                                 |   | $              | 52,594,143                    |   |   | $ | 51,925,991 |   |
|                                                                     |   |           |                          |   |   |   |   |   |
| Interest      bearing                                                    |   |           |                          |   |   |   |   |   |
|      NOW                                        |   |           | 25,441,609                    |   |   |   | 19,462,123 |   |
|      Savings                                    |   |           | 34,755,408                    |   |   |   | 34,261,389 |   |
|      Money      market                          |   |           | 40,596,382                    |   |   |   | 34,880,837 |   |
|      Time      certificates, less than $100,000 |   |           | 345,768,287                   |   |   |   | 300,502,281 |   |
|      Time      certificates, $100,000 or more   |   |           | 266,433,311                   |   |   |   | 231,366,788 |   |
| Total      interest bearing                                              |   |           | 712,994,997                   |   |   |   | 620,473,418 |   |
| Total      Deposits                                                      |   | $              | 765,589,140                   |   |   | $ | 672,399,409 |   |

----

| Three      months ended March 31, 2008                                         |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|--------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                           |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|                                                                           | Net      Income                                                                                                                                                                             | Shares                                                                                                             | Amount                                                                                                                                                        |
| Basic      Income Per Share                                                    |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|    Income      available to common shareholders                 |  $                 150,667                                                                        |              4,751,020                            |  $                   0.03                                 |
|      Effect      of Dilutive Securities               |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|         Stock      Options outstanding |                                - |                   19,455 |                           - |
| Diluted      Income Per Share                                                  |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|    Income      available to common shareholders                 |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|    plus      assumed conversions                                |  $                 150,667                                                                        |              4,770,475                            |  $                   0.03                                 |
|                                                                           |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
| Three      months ended March 31, 2007                                         |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|                                                                           |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|                                                                           | Net      Income                                                                                                                                                                             | Shares                                                                                                             | Amount                                                                                                                                                        |
| Basic      Income Per Share                                                    |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|    Income      available to common shareholders                 |  $                 516,419                                                                        |              4,739,494                            |  $                   0.11                                 |
|      Effect      of Dilutive Securities               |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|         Stock      Options outstanding |                                - |                   37,750 |                           - |
| Diluted      Income Per Share                                                  |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|    Income      available to common shareholders                 |                                                                                                                                                                                        |                                                                                                               |                                                                                                                                                          |
|    plus      assumed conversions                                |  $                 516,419                                                                        |              4,777,244                            |  $                   0.11                                 |

|                                   |   | Three      Months Ended |    |            | Three      Months Ended |   |
|----------------------------------------|--------|-------------------------|---------|-----------------|-------------------------|--------|
|                                   |   | March      31, 2008     |    |            | March      31, 2007     |   |
|                                   |   | Before      Tax         |    |            |                    |   |   | Net      of Tax |   |   | Before      Tax |   |   |   |   |   | Net      of Tax |   |
|                                   |   | Amount                  |    | Tax      Effect |                    | Amount |   |   | Amount |   | Tax      Effect |   | Amount |   |
|                                   |   |                    |    |            |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      holding gain           |   |                    |    |            |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| arising      during the period         |   | $                       | 425,061 |            |                    | $      | (161,523 | ) |   | $ | 263,538 |   |   | $ | 358,241 |   |   | $ | (136,131 | ) |   | $ | 222,110 |   |
|                                   |   |                    |    |            |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification      adjustment       |   |                    |    |            |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for      gains recognized in income    |   |                    | -       |            |                    |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|                                   |   |                    |    |            |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized      holding gain           |   |                    |    |            |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on      available for sale securities, |   |                    |    |            |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net      of taxes                      |   | $                       | 425,061 |            |                    | $      | (161,523 | ) |   | $ | 263,538 |   |   | $ | 358,241 |   |   | $ | (136,131 | ) |   | $ | 222,110 |   |

----

|   | Commitments      to extend credit:       |                                                                        |                                                             |
|--------|------------------------------------------|-----------------------------------------------------------------------------|------------------------------------------------------------------|
|   |                                     | Future      loan commitments                                                |  $      71,769,437            |   |
|   |                                     | Unused      lines of credit                                                 |          62,133,408 |   |
|   |                                     | Undisbursed      construction loans                                         |          86,746,286 |   |
|   | Financial      standby letters of credit |            1,642,391 |                                                             |
|   |                                     |                                                                        |  $    222,291,522                       |   |

----

----

|   | o | Level 1 Inputs -      Unadjusted quoted prices in active markets for identical assets or      liabilities that the reporting entity has the ability to access at the      measurement date. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | o | Level 2 Inputs -      Inputs other than quoted prices included in Level 1 that are      observable for the asset or liability, either directly or indirectly.      These might include quoted prices for similar assets or liabilities in      active markets, quoted prices for identical or similar assets or      liabilities in markets that are not active, inputs other than quoted      prices that are observable for the asset or liability (such as interest      rates, volatilities, prepayment speeds, credit risks, etc.) or inputs that      are derived principally from or corroborated by market data by correlation      or other means. |
|--------|---|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | o | Level 3 Inputs -      Unobservable inputs for determining the fair values of assets or      liabilities that reflect an entity's own assumptions about the assumptions      that market participants would use in pricing the assets or      liabilities. |
|--------|---|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                               |   | Level      1 |   |   | Level      2 |   |       | Level      3 |   |   | Total      |   |
|------------------------------------|--------|--------------|--------|--------|--------------|--------|------------|--------------|--------|--------|------------|--------|
|                               |   | Inputs       |   |   | Inputs       |   |       | Inputs       |   |   | Fair Value |   |
|                               |   |         |   |   |         |   |       |         |   |   |       |   |
| Securities      available for sale |   | $            | -      |   |         | $      | 60,831,388 |         |   | $      | -          |   |   | $ | 60,831,388 |   |

----

----

----

----

|   |                                              |          March      31,                                                               |    December      31,                                                                                                |   |
|--------|---------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | (Thousands      of dollars)                       |       2008                                                                                           |       2007                                                                                           |   |
|   |                                              |                                                                                                                               |                                                                                                                               |   |
|   | Loans      delinquent over 90 days                |  $                    107 |  $                    112 |   |
|   |      still      accruing |                                                                                                                               |                                                                                                                               |   |
|   | Non      accruing loans                           |                     5,127      |                     3,832      |   |
|   |      Total               |  $                 5,234                 |  $                 3,944                 |   |
|   | %      of Total Loans                             | 0.69%                                                                                                                              | 0.57%                                                                                                                              |   |
|   | %      of Total Assets                            | 0.59%                                                                                                                              | 0.49%                                                                                                                              |   |

----

----

----

|                                    |   |                        |    |   | Three months ended March      31, |   |   |    |   |   |
|-----------------------------------------|--------|-----------------------------|---------|--------|-----------------------------------|--------|--------|---------|--------|--------|
|                                    |   |                        |    | 2008   |                              |   |   |    |   |   |   |   | 2007 |   |   |   |   |
|                                    |   |                        |    |   | Interest                          |   |   |    |   |   |   |   |   | Interest |   |   |   |   |
|                                    |   | Average                     |    |   | Income/                           |   |   | Average |   |   | Average |   |   | Income/ |   |   | Average |   |
|                                    |   | Balance                     |    |   | Expense                           |   |   | Rate    |   |   | Balance |   |   | Expense |   |   | Rate |   |
|                                    |   | (dollars      in thousands) |    |
| Interest      earning assets:           |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |
| Loans                                   |   | $                           | 722,748 |   |                              | $      | 13,322 |    |   |   | 7.37 | % |   | $ | 530,741 |   |   | $ | 10,336 |   |   |   | 7.79 | % |
| Federal      funds sold and             |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   other      cash equivalents |   |                        | 23,269  |   |                              |   | 211    |    |   |   | 3.63 | % |   |   | 41,073 |   |   |   | 527 |   |   |   | 5.13 | % |
| Investments                             |   |                        | 65,904  |   |                              |   | 766    |    |   |   | 4.65 | % |   |   | 69,330 |   |   |   | 701 |   |   |   | 4.04 | % |
| Total      interest                     |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   earning      assets         |   |                        | 811,921 |   |                              | 14,299 |   |    | 7.04   | %      |   |   | 641,144 |   |   | 11,564 |   |   | 7.21 | % |
|                                    |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks            |   |                        | 5,963   |   |                              |   |   |    |   |   |   |   |   |   | 4,578 |   |   |   |   |   |   |   |   |   |
| Premises      and equipment, net        |   |                        | 7,647   |   |                              |   |   |    |   |   |   |   |   |   | 4,898 |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses          |   |                        | (5,837  | )      |                              |   |   |    |   |   |   |   |   |   | (5,630 | ) |   |   |   |   |   |   |   |   |
| Other      assets                       |   |                        | 28,794  |   |                              |   |   |    |   |   |   |   |   |   | 9,485 |   |   |   |   |   |   |   |   |   |
| Total      Assets                       |   | $                           | 848,488 |   |                              |   |   |    |   |   |   |   |   | $ | 654,475 |   |   |   |   |   |   |   |   |   |
|                                    |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing liabilities:      |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                |   | $                           | 674,273 |   |                              | $      | 7,610  |    |   |   | 4.51 | % |   | $ | 518,298 |   |   | $ | 5,693 |   |   |   | 4.39 | % |
| FHLB      advances                      |   |                        | 34,670  |   |                              |   | 301    |    |   |   | 3.47 | % |   |   | 8,000 |   |   |   | 98 |   |   |   | 4.90 | % |
| Subordinated      debt                  |   |                        | 8,248   |   |                              |   | 160    |    |   |   | 7.76 | % |   |   | 8,248 |   |   |   | 171 |   |   |   | 8.29 | % |
| Other      borrowings                   |   |                        | 7,017   |   |                              | 80     |   |    | 4.56   | %      |   |   | - |   |   | - |   |   | 0.00 | % |
| Total      interest                     |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   bearing      liabilities    |   |                        | 724,208 |   |                              | 8,151  |   |    | 4.50   | %      |   |   | 534,546 |   |   | 5,962 |   |   | 4.46 | % |
|                                    |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                    |   |                        | 50,959  |   |                              |   |   |    |   |   |   |   |   |   | 49,651 |   |   |   |   |   |   |   |   |   |
| Accrued      expenses and               |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   other      liabilities      |   |                        | 5,814   |   |                              |   |   |    |   |   |   |   |   |   | 5,405 |   |   |   |   |   |   |   |   |   |
| Shareholders'      equity               |   |                        | 67,507  |   |                              |   |   |    |   |   |   |   |   |   | 64,873 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and equity       |   | $                           | 848,488 |   |                              |   |   |    |   |   |   |   |   | $ | 654,475 |   |   |   |   |   |   |   |   |   |
|                                    |   |                        |    |   |                              |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                |   |                        |    |   |                              | $      | 6,148  |    |   |   |   |   |   |   |   |   |   | $ | 5,602 |   |   |   |   |   |
| Interest      margin                    |   |                        |    |   |                              |   |   |    |   |   | 3.03 | % |   |   |   |   |   |   |   |   |   |   | 3.50 | % |
| Interest      spread                    |   |                        |    |   |                              |   |   |    |   |   | 2.54 | % |   |   |   |   |   |   |   |   |   |   | 2.75 | % |

----

|                                    | Three months ended      March 31,                                                           |                                                                                        |
|-----------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
|                                    | 2008 vs 2007                                                                                |                                                                                        |
|                                    | Fluctuations      in Interest                                                               |                                                                                        |
|                                    | Income/Expense                                                                              |                                                                                        |
|                                    | Due      to change in:                                                                      |                                                                                        |
|                                    | Volume                                                                                      | Rate                                                                                        | Total |   |
|                                    | (dollars      in thousands)                                                                 |                                                                                        |
| Interest      earning assets:           |                                                                                        |                                                                                        |   |   |
| Loans                                   |  $      3,568                                            |  $       (582)                                      |  $      2,986 |   |
| Federal      funds sold and             |                                                                                        |                                                                                        |   |   |
|   other      cash equivalents |          (188)                                 |          (128)                                 |          (316) |   |
| Investments                             |            (33)                      |              98            |              65 |   |
| Total      interest                     |                                                                                        |                                                                                        |   |   |
|   earning      assets         |         3,347                                       |          (612)                                 |         2,735 |   |
|                                    |                                                                                        |                                                                                        |   |   |
| Interest      bearing liabilities:      |                                                                                        |                                                                                        |   |   |
| Deposits                                |  $      1,758                                            |  $        159                                  |  $      1,917 |   |
| FHLB      advances                      |            239                       |            (36)                      |            203 |   |
| Subordinated      debt                  |                - |            (11)                      |            (11) |   |
| Other      borrowings                   |              80            |                - |              80 |   |
| Total      interest                     |                                                                                        |                                                                                        |   |   |
|   bearing      liabilities    |         2,077                                       |            112                       |         2,189 |   |
|                                    |                                                                                        |                                                                                        |   |   |
| Net      interest income                |  $      1,270                                            |  $       (726)                                      |  $        546 |   |

----

----

----

|   |                           | March      31, 2008 |   | December      31, 2007 |   |
|--------|--------------------------------|---------------------|--------|------------------------|--------|
|   | Total      Risk-based Capital  | 11.21%              |   | 12.17%                 |   |
|   | Tier      1 Risk-based Capital | 10.34%              |   | 11.30%                 |   |
|   | Leverage      Capital          | 8.67%               |   | 9.42%                  |   |

|   |                           | March      31, 2008 |   | December      31, 2007 |   |
|--------|--------------------------------|---------------------|--------|------------------------|--------|
|   | Total      Risk-based Capital  | 11.09%              |   | 12.03%                 |   |
|   | Tier      1 Risk-based Capital | 10.22%              |   | 11.15%                 |   |
|   | Leverage      Capital          | 8.57%               |   | 9.30%                  |   |

----

----

----

|                      | Basis  | Interest      Rate   | March      31, | December      31, |
|---------------------------|--------|----------------------|----------------|-------------------|
|                      | Points | Risk      Guidelines | 2008           | 2007              |
|                      |   |                 |           |              |
| Gap      percentage total |   | +/-      15%         | 2.07%          | -8.33%            |
| Net      interest income  | 200    | +/-      15%         | -4.40%         | -1.05%            |
|                      | -200   | +/-      15%         | 1.51%          | -0.59%            |
| Net      portfolio value  | 200    | +/-      25%         | -4.92%         | -12.60%           |
|                      | -200   | +/-      25%         | 8.71%          | 7.35%             |

----

| Net      Interest Income and Economic Value |
|---------------------------------------------|
| Summary      Performance                    |
|                                        |
| March      31, 2008                         |
|                                        |   |   | Net      Interest Income |   | Net      Portfolio Value |   |
| Projected      Interest                     | Estimated |   |   | $      Change |   |   | %      Change |   |   | Estimated |   |   | $      Change |   |   | %      Change |   |
| Rate      Scenario                          |   |   | Value |   |   | from      Base |   |   | from      Base |   |   | Value |   |   | from      Base |   |   | from      Base |   |
|  +      200                            |   |   |   | 24,708 |   |   |   | (1,137 | ) |   |   | -4.40 | % |   |   | 90,282 |   |   |   | (4,669 | ) |   |   | -4.92 | % |
|  +      100                            |   |   |   | 25,373 |   |   |   | (472 | ) |   |   | -1.83 | % |   |   | 93,876 |   |   |   | (1,075 | ) |   |   | -1.13 | % |
| BASE                                        |   |   |   | 25,845 |   |   |   |   |   |   |   |   |   |   |   | 94,951 |   |   |   |   |   |   |   |   |   |
|  -      100                            |   |   |   | 25,786 |   |   |   | (59 | ) |   |   | -0.23 | % |   |   | 94,086 |   |   |   | (865 | ) |   |   | -0.91 | % |
|  -      200                            |   |   |   | 26,236 |   |   |   | 391 |   |   |   | 1.51 | % |   |   | 103,221 |   |   |   | 8,270 |   |   |   | 8.71 | % |
|                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2007                      |   |
|                                        |   |   |   | Net      Interest Income |   | Net      Portfolio Value |   |
| Projected      Interest                     | Estimated |   |   | $      Change |   |   | %      Change |   |   | Estimated |   |   | $      Change |   |   | %      Change |   |
| Rate      Scenario                          |   |   | Value |   |   | from      Base |   |   | from      Base |   |   | Value |   |   | from      Base |   |   | from      Base |   |
|  +      200                            |   |   |   | 24,969 |   |   |   | (265 | ) |   |   | -1.05 | % |   |   | 69,103 |   |   |   | (9,966 | ) |   |   | -12.60 | % |
|  +      100                            |   |   |   | 25,138 |   |   |   | (96 | ) |   |   | -0.38 | % |   |   | 73,971 |   |   |   | (5,098 | ) |   |   | -6.45 | % |
| BASE                                        |   |   |   | 25,234 |   |   |   |   |   |   |   |   |   |   |   | 79,069 |   |   |   |   |   |   |   |   |   |
|  -      100                            |   |   |   | 25,316 |   |   |   | 82 |   |   |   | 0.32 | % |   |   | 83,213 |   |   |   | 4,144 |   |   |   | 5.24 | % |
|  -      200                            |   |   |   | 25,084 |   |   |   | (150 | ) |   |   | -0.59 | % |   |   | 84,881 |   |   |   | 5,812 |   |   |   | 7.35 | % |

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| Item      6. | Exhibits |
|--------------|----------|
|         |     |   |
|         | No.      | Description |
|         |     |   |
|         | 2        | Agreement      and Plan of Reorganization dated as of June 28, 1999 between      Bancorp and the Bank (incorporated by reference to Exhibit 2 to Bancorp’s      Current Report on Form 8-K dated December 1, 1999 (Commission File No.      000-29599)). |
|         |     |   |
|         | 3(i)     | Certificate      of Incorporation of Bancorp, (incorporated by reference to Exhibit 3(i) to      Bancorp’s Current Report on Form 8-K dated December 1, 1999 (Commission      File No. 000-29599)). |
|         |     |   |
|         | 3(i)(A)  | Certificate      of Amendment of Certificate of Incorporation of Patriot National Bancorp,      Inc. dated July 16, 2004 (incorporated by reference to Exhibit 3(i)(A) to      Bancorp's Annual Report on Form 10-KSB for the year ended      December 31, 2004 (Commission File No.000-29599)). |
|         |     |   |
|         | 3(i)(B)  | Certificate      of Amendment of Certificate of Incorporation of Patriot National Bancorp,      Inc. dated June 15, 2006 (incorporated by reference to Exhibit 3(i)(B) to      Bancorp’s Quarterly Report of Form 10-Q for the quarter ended September      30, 2006 (commission File No. 000-29599)). |
|         |     |   |
|         | 3(ii)    | Amended      and Restated By-laws of Bancorp (incorporated by reference to Exhibit 3.2      to Bancorp’s Current Report on Form 8-K dated December 26, 2007      (Commission File No. 1-32007)) |
|         |     |   |
|         | 4        | Reference      is made to the Rights Agreement dated April 19, 2004 by and between      Patriot National Bancorp, Inc. and Registrar and Transfer Company filed as      Exhibit 99.2 to Bancorp’s Report on Form 8-K filed on April 19, 2004, and      the First Amendment to the Rights Agreement dated      January 23, 2008 filed as Exhibit 4.1 to Bancorp’s Report on      Form 8-K dated January 24, 2008 which are incorporated herein by      reference. |
|         |     |   |
|         | 10(a)(1) | 2001      Stock Appreciation Rights Plan of Bancorp (incorporated by reference to      Exhibit 10(a)(1) to Bancorp’s Annual Report on Form 10-KSB for the year      ended December 31, 2001 (Commission File No.      000-29599)). |

----

|   | No.       | Description                                                                                                                                                                                                                                                                                                                                                   |
|--------|-----------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      |                                                                                                                                                                                                                                                                                                                                                          |
|   | 10(a)(3)  | Employment      Agreement, dated as of October 23, 2000, as amended by a First Amendment,      dated as of March 21, 2001, among the Bank, Bancorp and Charles F. Howell      (incorporated by reference to Exhibit 10(a)(4) to Bancorp’s Annual Report      on Form 10-KSB for the year ended December 31, 2000 (Commission File No.      000-29599)). |
|   |      |                                                                                                                                                                                                                                                                                                                                                          |
|   | 10(a)(4)  | Change      of Control Agreement, dated as of January 1, 2007 among Angelo De Caro,      and Patriot National Bank and Bancorp (incorporated by reference to      Exhibit 10(a)(4) to Bancorp's Annual Report on Form 10-K for the year      ended December 31, 2006 (Commission File No.      000-29599)).                                                   |
|   |      |                                                                                                                                                                                                                                                                                                                                                          |
|   | 10(a)(5)  |  Employment      Agreement dated as of January 1, 2008 among Patriot National      Bank, Bancorp and Robert F. O’Connell (incorporated by reference to      Exhibit 10(a)(5) to Bancorp’s Annual Report on Form 10-K for the year      ended December 31, 2007 (Commission File No.  000-29599)).                                  |
|   |      |                                                                                                                                                                                                                                                                                                                                                          |
|   | 10(a)(6)  | Change      of Control Agreement, dated as of January 1, 2007 among Robert F.      O’Connell and Patriot National Bank and Bancorp (incorporated by reference      to Exhibit 10(a)(6) to Bancorp's Annual Report on Form 10-K for the year      ended December 31, 2006 (Commission File No.      000-29599)).                                         |
|   |      |                                                                                                                                                                                                                                                                                                                                                          |
|   | 10(a)(8)  | Employment      Agreement dated as of January 1, 2008 between Patriot National Bank and      Marcus Zavattaro (incorporated by reference to Exhibit 10(a)(8) to      Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2007      (Commission File No. 000-29599)).                                                                   |
|   |      |                                                                                                                                                                                                                                                                                                                                                          |
|   | 10(a)(9)  | License      agreement dated July 1, 2003 between Patriot National Bank and L. Morris      Glucksman (incorporated by reference to Exhibit 10(a)(9) to Bancorp’s      Annual Report on Form 10-KSB for the year ended December 31, 2003      (Commission File No. 000-29599)).                                                                     |
|   |      |                                                                                                                                                                                                                                                                                                                                                          |
|   | 10(a)(10) | Employment      Agreement dated as of January 1, 2007 among Patriot National Bank, Bancorp      and Charles F. Howell (incorporated by reference to Exhibit 10(a)(10) to      Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2006      (Commission File No.000-29599)).                                                      |

----

|   | No.       | Description                                                                                                                                                                                                                                                                                                       |
|--------|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 10(a)(11) | Change      of Control Agreement, dated as of January 1, 2007 among Charles F. Howell,      Patriot National Bank and Bancorp (incorporated by reference to Exhibit      10(a)(11) to Bancorp’s Annual Report on Form 10-K for the year ended      December 31, 2006 (Commission File No. 000-29599)). |
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 10(a)(12) | 2005      Director Stock Award Plan (incorporated by reference to Exhibit 10(a)(12)      to Bancorp’s Quarterly Report on Form 10-Q for the quarter ended June 30,      2006 (Commission File No. 000-295999)).                                                                                             |
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 10(a)(13) | Change      of Control Agreement, dated as of January 1, 2007 between Martin G. Noble      and Patriot National Bank (incorporated by reference to Exhibit 10(a)(13)      to Bancorp’s Annual Report on Form 10-K for the year ended December 31,      2006 (Commission File No. 000-29599)).          |
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 10(a)(14) | Change      of Control Agreement, dated as of January 1, 2007 among Philip W. Wolford,      Patriot National Bank and Bancorp (incorporated by reference to Exhibit      10(a)(14) to Bancorp’s Annual Report on Form 10-K for the year ended      December 31, 2006 (Commission File No.000-29599)).  |
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 10(c)     | 1999      Stock Option Plan of the Bank (incorporated by reference to Exhibit 10(c)      to Bancorp’s Current Report on Form 8-K dated December 1, 1999 (Commission      File No. 000-29599)).                                                                                                              |
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 14        | Code      of Conduct for Senior Financial Officers (incorporated by reference to      Exhibit 14 to Bancorp’s Annual Report on Form 10-KSB for the year ended      December 31, 2004 (Commission File No. 000-29599).                                                                                       |
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 21        | Subsidiaries      of Bancorp (incorporated by reference to Exhibit 21 to Bancorp’s Annual      Report on Form 10-KSB for the year ended December 31, 1999 (Commission      File No. 000-29599)).                                                                                                            |
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 31(1)     | Rule      13a-14(a)/15d-14(a) Certification of Chief Executive    Officer                                                                                                                                                                                                                                         |
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 31(2)     | Rule      13a-14(a)/15d-14(a) Certification of Chief Financial    Officer                                                                                                                                                                                                                                         |
|   |      |                                                                                                                                                                                                                                                                                                              |
|   | 32        | Section      1350 Certifications                                                                                                                                                                                                                                                                                  |

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|   | Patriot      National Bancorp, inc.               |
|--------|---------------------------------------------------|
|   | (Registrant)                                      |
|   |                                              |
|   |                                              |
|   | By:       /s/      Robert F. O’Connell |
|   | Robert      F. O’Connell,                   |
|   | Senior      Executive Vice President              |
|   | Chief      Financial Officer                      |
|   |                                              |
|   | On      behalf of the registrant and as           |
|   | chief      financial officer)                     |

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