----

| QUARTERLY REPORT UNDER SECTION 13 OR 15(d) |
|--------------------------------------------|

| OF THE SECURITIES EXCHANGE ACT OF 1934 |
|----------------------------------------|

| For the Quarter Ended March 31, 2010      | Commission file number 000-29599 |
|--------------------------------------------------------------------|----------------------------------|

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

----

| Table of Contents |
|-------------------|
|              |   |   |
|              |   | 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 | 30 |
|              |   |   |
| Item 3.           | Quantitative and Qualitative Disclosures about Market Risk | 47 |
|              |   |   |
| Item 4.           | Controls and Procedures | 50 |
|              |   |   |
| Part II           | OTHER INFORMATION |   |
|              |   |   |
| Item 1.           | Legal Proceedings | 50 |
|              |   |   |
| Item 1A.          | Risk Factors | 52 |
|              |   |   |
| Item 6.           | Exhibits | 52 |

----

|                                                                                                                                 | March 31, 2010                                                                                                                                                                                          |   | December 31, 2009                                                                                                                                                                                       |
|--------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                 | (Unaudited)                                                                                                                                                                                             |   |                                                                                                                                                                                                    |
| ASSETS                                                                                                                               |                                                                                                                                                                                                    |   |                                                                                                                                                                                                    |
| Cash and due from banks:                                                                                                             |                                                                                                                                                                                                    |   |                                                                                                                                                                                                    |
|    Noninterest bearing deposits and cash                                                                              |  $          10,127,565                                                                                                                           |   |  $         19,465,521                                                                                                                                 |
|    Interest bearing deposits                                                                                          |                 43,753,160                                                                                              |   |                 78,070,072                                                                                              |
| Federal funds sold                                                                                                                   |                 10,000,000                                                                                              |   |                 10,000,000                                                                                              |
| Short term investments                                                                                                               |                      311,634                                                                   |   |                      263,839                                                                   |
|                Cash and cash equivalents                  |                 64,192,359                                                                                              |   |               107,799,432                                                                                                         |
|                                                                                                                                 |                                                                                                                                                                                                    |   |                                                                                                                                                                                                    |
| Available for sale securities (at fair value)                                                                                        |                 63,000,520                                                                                              |   |                 48,829,981                                                                                              |
| Federal Reserve Bank stock                                                                                                           |                   1,315,500                                                                                   |   |                   1,839,650                                                                                   |
| Federal Home Loan Bank stock                                                                                                         |                   4,508,300                                                                                   |   |                   4,508,300                                                                                   |
| Loans receivable (net of allowance for loan losses:  2010 $15,061,796;                                                     |                                                                                                                                                                                                    |   |
|      2009 $15,794,118)                                                                                      |               624,941,545                                                                                                         |   |               645,205,943                                                                                                         |
| Accrued interest and dividends receivable                                                                                            |                   3,228,539                                                                                   |   |                   3,236,252                                                                                   |
| Premises and equipment, net                                                                                                          |                   6,230,846                                                                                   |   |                   6,595,727                                                                                   |
| Cash surrender value of life insurance                                                                                               |                 19,989,843                                                                                              |   |                 19,859,732                                                                                              |
| Other real estate owned                                                                                                              |                 18,207,196                                                                                              |   |                 19,073,993                                                                                              |
| Other assets                                                                                                                         |                   9,134,612                                                                                   |   |                   9,467,911                                                                                   |
|                Total assets                               |  $       814,749,260                                                                                                                                            |   |  $       866,416,921                                                                                                                                            |
|                                                                                                                                 |                                                                                                                                                                                                    |   |                                                                                                                                                                                                    |
| LIABILITIES AND SHAREHOLDERS' EQUITY                                                                                                 |                                                                                                                                                                                                    |   |                                                                                                                                                                                                    |
| Liabilities                                                                                                                          |                                                                                                                                                                                                    |   |                                                                                                                                                                                                    |
|      Deposits:                                                                                              |                                                                                                                                                                                                    |   |                                                                                                                                                                                                    |
|           Noninterest bearing deposits                                             |  $         49,314,543                                                                                                                                 |   |  $         49,755,521                                                                                                                                 |
|           Interest bearing deposits                                                |               662,526,332                                                                                                         |   |               711,578,771                                                                                                         |
|                Total deposits                             |            711,840,875                                                                                                                           |   |            761,334,292                                                                                                                           |
|      Repurchase agreements                                                                                  |                   7,000,000                                                                                   |   |                   7,000,000                                                                                   |
|      Federal Home Loan Bank borrowings                                                                      |                 50,000,000                                                                                              |   |                 50,000,000                                                                                              |
|      Junior subordinated debt owed to unconsolidated trust                                                  |                   8,248,000                                                                                   |   |                   8,248,000                                                                                   |
|      Accrued expenses and other liabilities                                                                 |                   4,586,265                                                                                   |   |                   3,973,319                                                                                   |
|                Total liabilities                          |            781,675,140                                                                                                                           |   |            830,555,611                                                                                                                           |
|                                                                                                                                 |                                                                                                                                                                                                    |   |                                                                                                                                                                                                    |
| Shareholders' equity                                                                                                                 |                                                                                                                                                                                                    |   |                                                                                                                                                                                                    |
|      Preferred stock: no par value; 1,000,000 shares authorized; no shares issued                           |                               -    |   |                               -    |
|      Common stock, $2 par value: 60,000,000 shares authorized; shares issued                                |
|      4,774,432; shares outstanding 4,762,727.                                                               |                   9,548,864                                                                                   |   |                   9,548,864                                                                                   |
|      Additional paid in capital                                                                             |                 49,651,534                                                                                              |   |                 49,651,534                                                                                              |
|      Accumulated deficit                                                                                    |               (27,131,966)                                                                                                        |   |               (24,000,400)                                                                                                        |
|      Less: Treasury stock at cost:  11,705 shares                                                 |                    (160,025)                                                                             |   |                    (160,025)                                                                             |
|      Accumulated other comprehensive income - net unrealized                                                |                                                                                                                                                                                                    |   |
|           gain on available-for-sale securities, net of taxes                      |                   1,165,713                                                                                   |   |                      821,337                                                                   |
|                Total shareholders' equity                 |              33,074,120                                                                                                                |   |              35,861,310                                                                                                                |
|                Total liabilities and shareholders' equity |  $      814,749,260                                                                                                                                                  |   |  $       866,416,921                                                                                                                                            |

----

|                                 |                                                                                                    |                                                                                                                                                                      | Three Months Ended March 31,                                                                                                                                              |
|--------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                 |                                                                                                    |                                                                                                                                                                      | 2010                                                                                                                                                                      | 2009 |
| Interest and Dividend Income         |                                                                                                    |                                                                                                                                                                      |
|                                 | Interest and fees on loans                                                                              |  $          9,096,489                                                                                              |  $        11,774,941                                                                                                         |
|                                 | Interest on investment securities                                                                       |                 489,564                                                                   |                 528,636                                                                   |
|                                 | Dividends on investment securities                                                                      |                   69,286                                                        |                   42,444                                                        |
|                                 | Interest on federal funds sold                                                                          |                     3,361                                             |                   12,922                                                        |
|                                 | Other interest income                                                                                   |                   31,815                                                        |                        291                             |
|                                 |                                                                                                    | Total interest and dividend income                                                                                                                                        |            9,690,515                                                                                               |          12,359,234 |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
| Interest Expense                     |                                                                                                    |                                                                                                                                                                      |
|                                 | Interest on deposits                                                                                    |              3,117,316                                                                                   |              6,242,773                                                                                   |
|                                 | Interest on Federal Home Loan Bank borrowings                                                           |                 418,875                                                                   |                 418,876                                                                   |
|                                 | Interest on subordinated debt                                                                           |                   69,333                                                        |                   93,220                                                        |
|                                 | Interest on other borrowings                                                                            |                   76,081                                                        |                   76,081                                                        |
|                                 |                                                                                                    | Total interest expense                                                                                                                                                    |            3,681,605                                                                                               |            6,830,950 |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
|                                 |                                                                                                    | Net interest income                                                                                                                                                       |            6,008,910                                                                                               |            5,528,284 |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
| Provision for Loan Losses            |                 727,000 |              1,600,000                                                                                   |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
|                                 |                                                                                                    | Net interest income after                                                                                                                                                 |                                                                                                                                                                      |   |
|                                 |                                                                                                    |      provision for loan losses                                                                                                                   |            5,281,910                                                                                               |            3,928,284 |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
| Noninterest Income                   |                                                                                                    |                                                                                                                                                                      |
|                                 | Mortgage brokerage referral fees                                                                        |                   26,884                                                        |                     2,495                                             |
|                                 | Loan origination & processing fees                                                                  |                   35,828                                                        |                   69,202                                                        |
|                                 | Fees and service charges                                                                                |                 253,521                                                                   |                 245,605                                                                   |
|                                 | Gain on sale of investment securities                                                                   |                             - |                 434,333                                                                   |
|                                 | Earnings on cash surrender value of life insurance                                                      |                 130,111                                                                   |                 189,013                                                                   |
|                                 | Other income                                                                                            |                   92,124                                                        |                   82,006                                                        |
|                                 |                                                                                                    | Total noninterest income                                                                                                                                                  |               538,468                                                                               |            1,022,654 |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
| Noninterest Expenses                 |                                                                                                    |                                                                                                                                                                      |
|                                 | Salaries and benefits                                                                                   |              3,361,284                                                                                   |              2,991,181                                                                                   |
|                                 | Occupancy and equipment expense, net                                                                    |              1,416,150                                                                                   |              1,405,223                                                                                   |
|                                 | Data processing                                                                                         |                 348,934                                                                   |                 317,991                                                                   |
|                                 | Professional services and other outside services                                                        |              1,063,595                                                                                   |                 720,817                                                                   |
|                                 | Advertising and promotional expenses                                                                    |                   83,633                                                        |                   57,773                                                        |
|                                 | Loan administration and processing expenses                                                             |                   95,803                                                        |                   97,729                                                        |
|                                 | Regulatory assessments                                                                                  |                 694,843                                                                   |                 279,374                                                                   |
|                                 | Insurance expense                                                                                       |                 273,297                                                                   |                   34,765                                                        |
|                                 | Other real estate operations                                                                            |                 978,691                                                                   |                             - |
|                                 | Other noninterest expenses                                                                              |                 410,714                                                                   |                 401,046                                                                   |
|                                 |                                                                                                    | Total noninterest expenses                                                                                                                                                |            8,726,944                                                                                               |            6,305,899 |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
|                                 |                                                                                                    | Loss before income taxes                                                                                                                                                  |          (2,906,566)                                                                                                         |          (1,354,961) |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
| (Provision) Benefit for Income Taxes |                (225,000)     |                 258,000                                                                   |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
|                                 |                                                                                                    | Net loss                                                                                                                                                                  |  $      (3,131,566)                                                                                                                    |  $      (1,096,961) |
|                                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |   |
|                                 |                                                                                                    | Basic and diluted loss per share                                                                                                                                          |  $               (0.66)                                                                   |  $               (0.23) |

----

|                                                                    |                                                                                                    | Three Months Ended                                           |
|-------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|--------------------------------------------------------------|
|                                                                    |                                                                                                    | March 31,                                                    |
|                                                                    |                                                                                                    | 2010                                                         |   | 2009 |
|                                                                    |                                                                                                    |                                                         |   |   |
| Net loss                                                                |                                                                                                    |  $       (3,131,566) |   |  $       (1,096,961) |
|                                                                    |                                                                                                    |                                                         |   |   |
| Unrealized holding gains (losses) on securities:                        |                                                                                                    |                                                         |   |
|      Unrealized holding gains (losses) arising |                                                                                                    |                                                         |   |
|      during the period, net of taxes           |                 344,376 |                                                         |                  (65,482) |
|                                                                    |                                                                                                    |                                                         |   |   |
| Comprehensive loss                                                      |  $      (2,787,190)                                                  |                                                         |  $      (1,162,443) |

----

|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |  Accumulated                                                                                                                                       |                                                                                   |
|--------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------|
|                                                                                                               |                                                                                                                |                                                                                                                            |  Additional                                                                                                                                  |                                                                                                                                  |                                                                                                                            |  Other                                                                                                                                             |                                                                                   |
|                                                                                                               |  Number of                                                                                                     |  Common                                                                                                                    |  Paid-In                                                                                                                                     |  Accumulated                                                                                                                     |  Treasury                                                                                                                  |  Comprehensive                                                                                                                                     |                                                                                   |
|                                                                                                               |  Shares                                                                                                        |  Stock                                                                                                                     |  Capital                                                                                                                                     |  Deficit                                                                                                                         |  Stock                                                                                                                     |  (Loss) Income                                                                                                                                     |  Total                                                                            |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
| Three months ended March 31, 2009                                                                                  |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
| Balance at December 31, 2008                                                                                       |     4,743,409                                                                                   |  $    9,510,228                                                                                        |  $    49,634,337                                                                                                         |  $     (119,886)                                                                                        |  $     (160,025)                                                                                  |  $           (90,510)                                                                       |  $     58,774,144                                        |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
| Comprehensive loss                                                                                                 |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
|   Net loss                                                                                               |                    - |                      - |                         - |      (1,096,961)                                                                                             |                      - |                          - |         (1,096,961)                            |
|   Unrealized holding loss on available for                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
|      sale securities, net of taxes                                                        |                    - |                      - |                         - |                       - |                      - |               (65,482)                                                            |              (65,482) |
|                Total comprehensive loss |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |         (1,162,443)                            |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
| Balance, March 31, 2009                                                                                            |     4,743,409                                                                                   |  $    9,510,228                                                                                        |  $    49,634,337                                                                                                         |  $  (1,216,847)                                                                                                        |  $     (160,025)                                                                                  |  $         (155,992)                                                                                  |  $     57,611,701                                        |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
| Three months ended March 31, 2010                                                                                  |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
| Balance at December 31, 2009                                                                                       |     4,762,727                                                                                   |  $    9,548,864                                                                                        |  $    49,651,534                                                                                                         |  $(24,000,400)                                                                                                                   |  $     (160,025)                                                                                  |  $           821,337                                                                        |  $     35,861,310                                        |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
| Comprehensive loss                                                                                                 |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
|   Net loss                                                                                               |                    - |                      - |                         - |      (3,131,566)                                                                                             |                      - |                          - |         (3,131,566)                            |
|   Unrealized holding gain on available for                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
|      sale securities, net of taxes                                                        |                    - |                      - |                         - |                       - |                      - |               344,376                                                             |              344,376  |
|                Total comprehensive loss |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |         (2,787,190)                            |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
|                                                                                                               |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                                  |                                                                                                                            |                                                                                                                                                    |                                                                                   |
| Balance, March 31, 2010                                                                                            |     4,762,727                                                                                   |  $    9,548,864                                                                                        |  $    49,651,534                                                                                                         |  $(27,131,966)                                                                                                                   |  $     (160,025)                                                                                  |  $        1,165,713                                                                                        |  $     33,074,120                                        |

----

|                                                                                        |   | Three Months Ended |        |
|---------------------------------------------------------------------------------------------|--------|--------------------|-------------|
|                                                                                        |   | March 31,          |        |
|                                                                                        |   | 2010               |        |   | 2009 |   |
|                                                                                        |   |               |        |   |   |   |
| Cash Flows from Operating Activities:                                                       |   |               |        |   |   |   |
| Net loss                                                                                    |   | $                  | (3,131,566  | ) |   | $ | (1,096,961 | ) |
| Adjustments to reconcile net loss to net cash                                               |   |               |        |   |   |   |   |   |
| used in operating activities:                                                               |   |               |        |   |   |   |   |   |
| Amortization and accretion of investment premiums and discounts, net                        |   |               | 45,171      |   |   |   | 15,258 |   |
| Provision for loan losses                                                                   |   |               | 727,000     |   |   |   | 1,600,000 |   |
| Gain on sale of investment securities                                                       |   |               | -           |   |   |   | (434,333 | ) |
| Amortization of core deposit intangible                                                     |   |               | 3,975       |   |   |   | 4,197 |   |
| Earnings on cash surrender value of life insurance                                          |   |               | (130,111    | ) |   |   | (189,013 | ) |
| Depreciation and amortization                                                               |   |               | 389,515     |   |   |   | 424,555 |   |
| Loss on sale of other real estate owned                                                     |   |               | 52,977      |   |   |   | - |   |
| Impairment writedown on other real estate owned                                             |   |               | 701,197     |   |   |   | - |   |
| Deferred income taxes                                                                       |   |               | -           |   |   |   | (823,142 | ) |
| Changes in assets and liabilities:                                                          |   |               |        |   |   |   |   |   |
|      Decrease in deferred loan fees                                |   |               | (134,918    | ) |   |   | (237,713 | ) |
|      Decrease in accrued interest receivable                       |   |               | 7,713       |   |   |   | 384,383 |   |
|      Decrease in other assets                                      |   |               | 853,474     |   |   |   | 169,280 |   |
|      Increase (decrease) in accrued expenses and other liabilities |   |               | 401,878     |   |   |   | (647,556 | ) |
|      Net cash used in operating activities                         |   |               | (213,695    | ) |   |   | (831,045 | ) |
|                                                                                        |   |               |        |   |   |   |   |   |
| Cash Flows from Investing Activities:                                                       |   |               |        |   |   |   |   |   |
| Purchases of available for sale securities                                                  |   |               | (15,162,500 | ) |   |   | - |   |
| Principal repayments on available for sale securities                                       |   |               | 1,502,234   |   |   |   | 1,095,929 |   |
| Proceeds from redemptions of available for sale securities                                  |   |               | -           |   |   |   | 6,000,000 |   |
| Net decrease in loans                                                                       |   |               | 19,672,316  |   |   |   | 2,103,221 |   |
| Proceeds from sale of other real estate owned                                               |   |               | 112,623     |   |   |   |   |   |
| Purchase of bank premises and equipment                                                     |   |               | (24,634     | ) |   |   | (122,199 | ) |
|      Net cash provided by investing activities                     |   |               | 6,100,039   |   |   |   | 9,076,951 |   |
|                                                                                        |   |               |        |   |   |   |   |   |
| Cash Flows from Financing Activities:                                                       |   |               |        |   |   |   |   |   |
| Net (decrease) increase in demand, savings and money market deposits                        |   |               | (8,359,465  | ) |   |   | 45,868,465 |   |
| Net (decrease) increase in time certificates of deposits                                    |   |               | (41,133,952 | ) |   |   | 13,255,317 |   |
| Dividends paid on common stock                                                              |   |               | -           |   |   |   | (213,454 | ) |
|      Net cash (used in) provided by financing activities           |   |               | (49,493,417 | ) |   |   | 58,910,328 |   |
|                                                                                        |   |               |        |   |   |   |   |   |
|      Net (decrease) increase in cash and cash equivalents          |   |               | (43,607,073 | ) |   |   | 67,156,234 |   |
|                                                                                        |   |               |        |   |   |   |   |   |
| Cash and Cash Equivalents:                                                                  |   |               |        |   |   |   |   |   |
| Beginning                                                                                   |   |               | 107,799,432 |   |   |   | 24,602,751 |   |
|                                                                                        |   |               |        |   |   |   |   |   |
| Ending                                                                                      |   | $                  | 64,192,359  |   |   | $ | 91,758,985 |   |

----

|                                                                    |                                                              | Three Months Ended                                                                                     |
|-------------------------------------------------------------------------|-------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------|
|                                                                    |                                                              | March 31,                                                                                              |
|                                                                    |                                                              | 2010                                                                                                   | 2009 |
|                                                                    |                                                              |                                                                                                   |   |
| Supplemental Disclosures of Cash Flow Information                       |                                                              |                                                                                                   |
|                                                                    | Cash paid for:                                                    |                                                                                                   |   |
|                                                                    |      Interest                            |  $        3,658,816                                       |  $        6,950,959 |
|                                                                    |                                                              |                                                                                                   |   |
|                                                                    |      Income taxes                        |  $               2,080 |  $        1,234,080 |
|                                                                    |                                                              |                                                                                                   |   |
| Supplemental disclosures of noncash investing and financing activities: |                                                              |                                                                                                   |
|                                                                    |                                                              |                                                                                                   |   |
|                                                                    | Unrealized holding gain (loss) on available for sale              |                                                                                                   |   |
|                                                                    | securities arising during the period                              |  $           555,444                       |  $        (105,624) |
|                                                                    |                                                              |                                                                                                   |   |
|                                                                    | Proceeds receivable from redemption of Federal Reserve Bank Stock |                                                                                                   |   |
|                                                                    | and investment sales transactions                                 |  $           524,150                       |  $      19,852,542 |

----

----

|                                     |                                                      | Gross                                                                                                                 | Gross                                                                                                                     |                                                      |
|------------------------------------------|-----------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|
|                                     | Amortized                                                 | Unrealized                                                                                                            | Unrealized                                                                                                                | Fair                                                      |
|                                     | Cost                                                      | Gains                                                                                                                 | Losses                                                                                                                    | Value                                                     |
| March 31, 2010:                          |                                                      |                                                                                                                  |                                                                                                                      |                                                      |
|                                     |                                                      |                                                                                                                  |                                                                                                                      |                                                      |
| U. S. Government agency obligations      |  $   15,175,233                       |  $         334,316                                                       |  $        (35,674)                                                           |  $    15,473,875                      |
| U. S. Government agency mortgage-backed  |                                                      |                                                                                                                  |                                                                                                                      |
|    securities             |       44,045,385            |           340,707                                                   |          (146,073)                                                           |       44,240,019            |
| Money market preferred equity securities |         1,899,720 |         1,386,906                                                             |                     - |         3,286,626 |
| Total Available-for-Sale Securities      |  $   61,120,338                       |  $     2,061,929                                                                        |  $       (181,747)                                                                     |  $   63,000,520                       |
|                                     |                                                      |                                                                                                                  |                                                                                                                      |                                                      |
| December 31, 2009:                       |                                                      |                                                                                                                  |                                                                                                                      |                                                      |
|                                     |                                                      |                                                                                                                  |                                                                                                                      |                                                      |
| U. S. Government agency obligations      |  $     5,176,712            |  $                   - |  $         (68,212)                                                          |  $     5,108,500            |
| U. S. Government agency mortgage-backed  |                                                      |                                                                                                                  |                                                                                                                      |
|    securities             |       40,428,810            |           241,520                                                   |          (166,872)                                                           |       40,503,458            |
| Money market preferred equity securities |         1,899,720 |         1,318,303                                                             |                     - |         3,218,023 |
| Total Available-for-Sale Securities      |  $   47,505,242                       |  $     1,559,823                                                                        |  $      (235,084)                                                                      |  $   48,829,981                       |

----

|                                                     | Less Than 12 Months                      |                                                      | 12 Months or More |                                                                                                                        | Total                                                                                                                       |   |
|----------------------------------------------------------|------------------------------------------|-----------------------------------------------------------|-------------------|-----------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------|--------|
|                                                     | Fair                                     | Unrealized                                                |              | Fair                                                                                                                        | Unrealized                                                                                                                  |   | Fair | Unrealized |
|                                                     | Value                                    | Loss                                                      |              | Value                                                                                                                       | Loss                                                                                                                        |   | Value | Loss |
| March 31, 2010:                                          |                                     |                                                      |              |                                                                                                                        |                                                                                                                        |   |   |   |
|                                                     |                                     |                                                      |              |                                                                                                                        |                                                                                                                        |   |   |   |
| U. S. Government agency                                  |                                     |                                                      |              |                                                                                                                        |                                                                                                                        |   |   |   |
|      obligations                |  $    5,139,560 |  $       (35,674) |              |  $                 -    |  $                 -    |   |  $    5,139,560 |  $       (35,674) |
| U. S. Government agency                                  |                                     |                                                      |              |                                                                                                                        |                                                                                                                        |   |   |   |
|      mortgage-backed securities | 20,316,531                               | (145,901)                                                 |              | 733,175                                                                                                                     | (172)                                                                                                                       |   | 21,049,706 | (146,073) |
| Totals                                                   |  $  25,456,091            |  $     (181,575)            |              |  $       733,175                                                                    |  $            (172)                                        |   |  $  26,189,266 |  $     (181,747) |
|                                                     |                                     |                                                      |              |                                                                                                                        |                                                                                                                        |   |   |   |
| December 31, 2009:                                       |                                     |                                                      |              |                                                                                                                        |                                                                                                                        |   |   |   |
|                                                     |                                     |                                                      |              |                                                                                                                        |                                                                                                                        |   |   |   |
| U. S. Government agency                                  |                                     |                                                      |              |                                                                                                                        |                                                                                                                        |   |   |   |
|      obligations                |  $    5,108,500 |  $       (68,212) |              |  $                -     |  $                -     |   |  $    5,108,500 |  $       (68,212) |
| U. S. Government agency                                  |                                     |                                                      |              |                                                                                                                        |                                                                                                                        |   |   |   |
|      mortgage-backed securities | 19,548,726                               | (159,918)                                                 |              | 759,207                                                                                                                     | (6,954)                                                                                                                     |   | 20,307,933 | (166,872) |
| Totals                                                   |  $  24,657,226            |  $     (228,130)            |              |  $       759,207                                                                    |  $         (6,954)                                                        |   |  $  25,416,433 |  $     (235,084) |

----

|                                                     | Amortized Cost                                 | Fair Value                                     |
|----------------------------------------------------------|------------------------------------------------|------------------------------------------------|
| March 31, 2010:                                          |                                           |                                           |
| Maturity:                                                |                                           |                                           |
|      > 10 years              |  $   15,175,233            |  $   15,473,875            |
|      Mortgage-backed securities |       44,045,385 |       44,240,019 |
| Total                                                    |  $   59,220,618            |  $   59,713,894            |

----

|                                        |   | March 31, |        |   | December 31, |   |
|---------------------------------------------|--------|-----------|-------------|--------|--------------|--------|
|                                        |   | 2010      |        |   | 2009         |   |
| Real Estate                                 |   |      |        |   |         |   |
|    Commercial                |   | $         | 226,521,896 |   |         | $      | 230,225,306 |   |
|    Residential               |   |      | 205,584,121 |   |         |   | 195,571,225 |   |
|    Construction              |   |      | 130,986,865 |   |         |   | 154,457,082 |   |
|    Construction to permanent |   |      | 13,396,736  |   |         |   | 15,989,976 |   |
| Commercial                                  |   |      | 18,497,228  |   |         |   | 19,298,505 |   |
| Consumer home equity                        |   |      | 43,541,316  |   |         |   | 44,309,265 |   |
| Consumer installment                        |   |      | 1,347,956   |   |         |   | 1,155,059 |   |
| Total Loans                                 |   |      | 639,876,118 |   |         |   | 661,006,418 |   |
| Premiums on purchased loans                 |   |      | 130,655     |   |         |   | 131,993 |   |
| Net deferred loan fees                      |   |      | (3,432      | )      |         |   | (138,350 | ) |
| Allowance for loan losses                   |   |      | (15,061,796 | )      |         |   | (15,794,118 | ) |
| Loans receivable, net                       |   | $         | 624,941,545 |   |         | $      | 645,205,943 |   |

|                           |   | Three months ended |       |
|--------------------------------|--------|--------------------|------------|
|                           |   | March 31,          |       |
|                           |   | 2010               |       |   | 2009 |   |
|                           |   |               |       |   |   |   |
| Balance at beginning of period |   | $                  | 15,794,118 |   |   | $ | 16,247,070 |   |
| Provision for loan losses      |   |               | 727,000    |   |   |   | 1,600,000 |   |
| Charge-offs                    |   |               | (1,583,247 | ) |   |   | (1,216,165 | ) |
| Recoveries                     |   |               | 123,925    |   |   |   | - |   |
| Balance at end of period       |   | $                  | 15,061,796 |   |   | $ | 16,630,905 |   |

----

|                                                  | March 31,                                                        |   | December 31,                                                     |
|-------------------------------------------------------|------------------------------------------------------------------|--------|------------------------------------------------------------------|
|                                                  | 2010                                                             |   | 2009                                                             |
|                                                  |                                                             |   |                                                             |
| Impaired loans receivable for which there is a        |                                                             |   |                                                             |
|    related allowance for credit losses |  $      42,354,301            |   |  $      30,968,602            |
|                                                  |                                                             |   |                                                             |
| Impaired loans receivable for which there is no       |                                                             |   |                                                             |
|    related allowance for credit losses |  $      67,745,963            |   |  $      82,568,512            |
|                                                  |                                                             |   |                                                             |
| Allowance for credit losses related to impaired loans |  $        4,355,836 |   |  $        3,942,012 |

----

|                                                                | March 31,                                                        | December 31,                                                     |
|---------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
|                                                                | 2010                                                             | 2009                                                             |
|                                                                |                                                             |                                                             |
| Non-interest bearing                                                |  $      49,314,543            |  $      49,755,521            |
|                                                                |                                                             |                                                             |
| Interest bearing                                                    |                                                             |                                                             |
|      NOW                                   |          23,774,411 |          21,581,697 |
|      Savings                               |          58,906,759 |          69,766,296 |
|      Money market                          |        112,766,323            |        112,017,987            |
|      Time certificates, less than $100,000 |        284,275,901            |        305,719,484            |
|      Time certificates, $100,000 or more   |        182,802,938            |        202,493,307            |
| Total interest bearing                                              |        662,526,332            |        711,578,771            |
| Total Deposits                                                      |  $    711,840,875                       |  $    761,334,292                       |

----

| Three months ended March 31, 2010                          |   |       |       |   |   |   |      |   |   |
|------------------------------------------------------------|--------|------------|------------|--------|--------|--------|-----------|--------|--------|
|                                                       |   |       |       |   |   |   |      |   |   |
|                                                       |   | Net Loss   |       |   | Shares |   |      | Amount |   |
| Basic and Diluted Loss Per Share                           |   |       |       |   |   |   |      |   |   |
|    Loss attributable to common shareholders |   | $          | (3,131,566 | )      |   |   | 4,762,727 |   |   | $ | (0.66 | ) |
|                                                       |   |       |       |   |   |   |      |   |   |   |   |   |
| Three months ended March 31, 2009                          |   |       |       |   |   |   |      |   |   |   |   |   |
|                                                       |   |       |       |   |   |   |      |   |   |   |   |   |
|                                                       |   | Net Income |       |   | Shares |   |      | Amount |   |
| Basic and Diluted Loss Per Share                           |   |       |       |   |   |   |      |   |   |   |   |   |
|    Loss attributable to common shareholders |   | $          | (1,096,961 | )      |   |   | 4,743,409 |   |   | $ | (0.23 | ) |

|                              |   | Three Months Ended |    |   | Three Months Ended |   |
|-----------------------------------|--------|--------------------|---------|--------|--------------------|--------|
|                              |   | March 31, 2010     |    |   | March 31, 2009     |   |
|                              |   | Before Tax         |    |   |               |   |   | Net of Tax |   |   | Before Tax |   |   |   |   |   | Net of Tax |   |
|                              |   | Amount             |    |   | Tax Effect         |   |   | Amount |   |   | Amount |   |   | Tax Effect |   |   | Amount |   |
|                              |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains          |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |
| arising during the period         |   | $                  | 555,443 |   |               | $      | (211,067 | ) |   | $ | 344,376 |   |   | $ | 328,709 |   |   | $ | (124,905 | ) |   | $ | 203,804 |   |
|                              |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Reclassification adjustment       |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for gains recognized in income    |   |               | -       |   |               |   | - |   |   |   | - |   |   |   | (434,333 | ) |   |   | 165,047 |   |   |   | (269,286 | ) |
|                              |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Unrealized holding gains (losses) |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| on available for sale securities, |   |               |    |   |               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| net of taxes                      |   | $                  | 555,443 |   |               | $      | (211,067 | ) |   | $ | 344,376 |   |   | $ | (105,624 | ) |   | $ | 40,142 |   |   | $ | (65,482 | ) |

----

|   | Commitments to extend credit:       |                                                                                              |                                                                              |
|--------|-------------------------------------|---------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
|   |                                | Future loan commitments                                                                           |  $       15,013,250                       |   |
|   |                                | Home equity line of credit                                                                        |           24,518,635            |   |
|   |                                | Unused lines of credit                                                                            |             9,960,965 |   |
|   |                                | Undisbursed construction loans                                                                    |           11,077,727            |   |
|   | Financial standby letters of credit |                172,000 |                                                                              |
|   |                                |                                                                                              |  $       60,742,577                       |   |
|   |                                |                                                                                              |                                                                              |   |

----

----

----

|                                     |                                                   |              |                                                   |              | To Be Well                                             |
|------------------------------------------|--------------------------------------------------------|-------------------|--------------------------------------------------------|-------------------|--------------------------------------------------------|
|                                     |                                                   |              |                                                   |              | Capitalized Under                                      |
|                                     |                                                   |              | For Capital                                            | Prompt Corrective |
|                                     | Actual                                                 | Adequacy Purposes | Action Provisions                                      |
|                                     | Amount                                                 | Ratio             | Amount                                                 | Ratio             | Amount                                                 | Ratio |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| March 31, 2010                           |                                                   |              |                                                   |              |                                                   |   |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| The Company:                             |                                                   |              |                                                   |              |                                                   |   |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| Total Capital (to Risk Weighted Assets)  |  $     47,607            | 8.45%             |  $     45,072            | 8.00%             | N/A                                                    | N/A |
| Tier 1 Capital (to Risk Weighted Assets) |         39,844 | 7.07%             |         22,543 | 4.00%             | N/A                                                    | N/A |
| Tier 1 Capital (to Average Assets)       |         39,844 | 4.78%             |         33,342 | 4.00%             | N/A                                                    | N/A |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| The Bank:                                |                                                   |              |                                                   |              |                                                   |   |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| Total Capital (to Risk Weighted Assets)  |  $     47,667            | 8.47%             |  $     45,022            | 8.00%             |  $     56,277            | 10.00% |
| Tier 1 Capital (to Risk Weighted Assets) |         39,909 | 7.09%             |         22,516 | 4.00%             |         33,773 | 6.00% |
| Tier 1 Capital (to Average Assets)       |         39,909 | 4.79%             |         33,327 | 4.00%             |         41,659 | 5.00% |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| December 31, 2009                        |                                                   |              |                                                   |              |                                                   |   |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| The Company:                             |                                                   |              |                                                   |              |                                                   |   |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| Total Capital (to Risk Weighted Assets)  |  $     51,072            | 8.58%             |  $     47,894            | 8.00%             | N/A                                                    | N/A |
| Tier 1 Capital (to Risk Weighted Assets) |         42,971 | 7.22%             |         23,945 | 4.00%             | N/A                                                    | N/A |
| Tier 1 Capital (to Average Assets)       |         42,971 | 4.72%             |         36,512 | 4.00%             | N/A                                                    | N/A |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| The Bank:                                |                                                   |              |                                                   |              |                                                   |   |
|                                     |                                                   |              |                                                   |              |                                                   |   |
| Total Capital (to Risk Weighted Assets)  |  $     51,056            | 8.58%             |  $     47,821            | 8.00%             |  $     59,506            | 10.00% |
| Tier 1 Capital (to Risk Weighted Assets) |         42,960 | 7.22%             |         23,908 | 4.00%             |         35,701 | 6.00% |
| Tier 1 Capital (to Average Assets)       |         42,960 | 4.72%             |         36,454 | 4.00%             |         45,508 | 5.00% |

----

----

|   | 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. |
|--------|---|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | Separate disclosure of the significant transfers in and out of Level 1 and Level 2 fair value measurements, and a description of the reasons for the transfers.  The Company had no significant transfers into, or out of, levels 1 or 2 during the three months ended March 31, 2010. |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | · | In the rollforward of activity for Level 3 fair value measurements (significant unobservable inputs), purchases, sales , issuances, and settlements should be presented separately (on a gross basis rather than as one net number). |
|--------|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Fair value measurements and disclosures should be presented for each class of assets and liabilities within a line item in the statement of financial position. |
|--------|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | Reporting entities should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements that fall in either Level 2 or Level 3. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                      | Fair Value at Reporting Date Using                                                                                                                                                    |   |                                                                        |
|-------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------|
|                                      |  Quoted Prices in                                                                                                                                                                |   | Significant                                                                 |   | Significant |   |   |
|                                      |  Active Markets                                                                                                                                                                  |   | Observable                                                                  |   | Unobservable |   | Balance |
|                                      | for Identical Assets                                                                                                                                                                  |   |  Inputs                                                                |   |  Inputs |   |  as of |
| March 31, 2010                            | (Level 1)                                                                                                                                                                             |   | (Level 2)                                                                   |   | (Level 3) |   | March 31, 2010 |
|                                      |                                                                                                                                                                                  |   |                                                                        |   |   |   |   |
| U.S. Government agency obligations        |  $                          -                  |   |  $      15,473,875                       |   |  $                       - |   |  $          15,473,875 |
| U.S. Government agency mortgage-          |                                                                                                                                                                                  |   |                                                                        |   |   |   |   |
|     backed securities |                               - |   |          44,240,019            |   |                           - |   |              44,240,019 |
| Money market preferred equity securities  |                               - |   |            3,286,626 |   |                           - |   |                3,286,626 |
| Securities available for sale             |  $                           -            |   |  $      63,000,520                       |   |  $                       - |   |  $          63,000,520 |
|                                      |                                                                                                                                                                                  |   |                                                                        |   |   |   |   |
|                                      |  Quoted Prices in                                                                                                                                                                |   | Significant                                                                 |   | Significant |   |   |
|                                      |  Active Markets                                                                                                                                                                  |   | Observable                                                                  |   | Unobservable |   | Balance |
|                                      | for Identical Assets                                                                                                                                                                  |   |   Inputs                                                               |   |   Inputs |   | as of |
| December 31, 2009                         | (Level 1)                                                                                                                                                                             |   | (Level 2)                                                                   |   | (Level 3) |   | December 31, 2009 |
|                                      |                                                                                                                                                                                  |   |                                                                        |   |   |   |   |
| U.S. Government agency obligations        |  $                           -            |   |  $        5,108,500            |   |  $                       - |   |  $            5,108,500 |
| U.S. Government agency mortgage-          |                                                                                                                                                                                  |   |                                                                        |   |   |   |                               - |
|     backed securities |                               - |   |          40,503,458            |   |                           - |   |              40,503,458 |
| Money market preferred equity securities  |                               - |   |            3,218,023 |   |                           - |   |                3,218,023 |
| Securities available for sale             |  $                           -            |   |  $      48,829,981                       |   |  $                       - |   |  $          48,829,981 |

----

|               |  Quoted Prices in                                                                                                                                                                                         | Significant                                                                                                                                                                                              | Significant                                                                                           |                                                                                |
|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------|
|               |  Active Markets                                                                                                                                                                                           | Observable                                                                                                                                                                                               | Unobservable                                                                                          | Balance                                                                             |
|               |  for Identical Assets                                                                                                                                                                                     | Inputs                                                                                                                                                                                                   | Inputs                                                                                                | as of                                                                               |
| March 31, 2010     | (Level 1)                                                                                                                                                                                                      | (Level 2)                                                                                                                                                                                                | (Level 3)                                                                                             | March 31, 2010                                                                      |
|               |                                                                                                                                                                                                           |                                                                                                                                                                                                     |                                                                                                  |                                                                                |
| Impaired Loans(1)  |  $                                 - |  $                                - |  $              28,791,829 |  $           28,791,829 |
|               |                                                                                                                                                                                                           |                                                                                                                                                                                                     |                                                                                                  |                                                                                |
|               | Quoted Prices in                                                                                                                                                                                               | Significant                                                                                                                                                                                              | Significant                                                                                           |                                                                                |
|               | Active Markets                                                                                                                                                                                                 | Observable                                                                                                                                                                                               | Unobservable                                                                                          | Balance                                                                             |
|               | for Identical Assets                                                                                                                                                                                           | Inputs                                                                                                                                                                                                   | Inputs                                                                                                | as of                                                                               |
| December 31, 2009  | (Level 1)                                                                                                                                                                                                      | (Level 2)                                                                                                                                                                                                | (Level 3)                                                                                             | December 31, 2009                                                                   |
|               |                                                                                                                                                                                                           |                                                                                                                                                                                                     |                                                                                                  |                                                                                |
| Impaired Loans (1) |  $                                 - |  $                               -       |  $            49,322,844             |  $         49,322,844             |

|                    |  Quoted Prices in                                                                                                                                                                                               | Significant                                                                                                                                                                                                                      | Significant                                                                   |                                                                                      |
|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|
|                    |  Active Markets                                                                                                                                                                                                 | Observable                                                                                                                                                                                                                       | Unobservable                                                                  | Balance                                                                                   |
|                    |  for Identical Assets                                                                                                                                                                                           | Inputs                                                                                                                                                                                                                           | Inputs                                                                        | as of                                                                                     |
| March 31, 2010          | (Level 1)                                                                                                                                                                                                            | (Level 2)                                                                                                                                                                                                                        | (Level 3)                                                                     | March 31, 2010                                                                            |
|                    |                                                                                                                                                                                                                 |                                                                                                                                                                                                                             |                                                                          |                                                                                      |
| Other real estate owned |  $                                  - |  $                                    - |  $          18,207,196 |  $            18,207,196 |
|                    |                                                                                                                                                                                                                 |                                                                                                                                                                                                                             |                                                                          |                                                                                      |
|                    |  Quoted Prices in                                                                                                                                                                                               | Significant                                                                                                                                                                                                                      | Significant                                                                   |                                                                                      |
|                    |  Active Markets                                                                                                                                                                                                 | Observable                                                                                                                                                                                                                       | Unobservable                                                                  | Balance                                                                                   |
|                    |  for Identical Assets                                                                                                                                                                                           | Inputs                                                                                                                                                                                                                           | Inputs                                                                        | as of                                                                                     |
| December 31, 2009       | (Level 1)                                                                                                                                                                                                            | (Level 2)                                                                                                                                                                                                                        | (Level 3)                                                                     | December 31, 2009                                                                         |
|                    |                                                                                                                                                                                                                 |                                                                                                                                                                                                                             |                                                                          |                                                                                      |
| Other real estate owned |  $                                 -       |  $                                  -             |  $        19,073,993                  |  $          19,073,993             |

----

----

|                                                 |                                                                  |                                                                              |                                                                  |                                                                              |
|------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------|-----------------------------------------------------------------------|-----------------------------------------------------------------------------------|
|                                                 | March 31, 2010                                                        | December 31, 2009                                                                 |
|                                                 |  Recorded                                              |                                                                              |  Recorded                                              |                                                                              |
|                                                 |  Book                                                            |  Fair                                                                        |  Book                                                            |  Fair                                                                        |
|                                                 |  Balance                                                         |  Value                                                                       |  Balance                                                         |  Value                                                                       |
| Financial Assets:                                    |                                                                  |                                                                              |                                                                  |                                                                              |
| Cash and noninterest bearing balances due from banks |       10,128                            |         10,128                            |       19,466                            |         19,466                            |
| Interest-bearing deposits due from banks             |       43,753                            |         43,753                            |       78,070                            |         78,070                            |
| Federal funds sold                                   |       10,000                            |         10,000                            |       10,000                            |         10,000                            |
| Short-term investments                               |            312 |              312 |            264 |              264 |
| Available-for-sale securities                        |       63,001                            |         63,001                            |       48,830                            |         48,830                            |
| Federal Reserve Bank stock                           |         1,316                 |           1,316                 |         1,840                 |           1,840                 |
| Federal Home Loan Bank stock                         |         4,508                 |           4,508                 |         4,508                 |           4,508                 |
| Loans receivable, net                                |     624,942                                       |       624,014                                       |     645,206                                       |       644,977                                       |
| Accrued interest receivable                          |         3,229                 |           3,229                 |         3,236                 |           3,236                 |
|                                                 |                                                                  |                                                                              |                                                                  |                                                                              |
| Financial Liabilities:                               |                                                                  |                                                                              |                                                                  |                                                                              |
| Demand deposits                                      |       49,315                            |         49,315                            |       49,756                            |         49,756                            |
| Savings deposits                                     |       58,907                            |         58,907                            |       69,766                            |         69,766                            |
| Money market deposits                                |     112,766                                       |       112,766                                       |     112,018                                       |       112,018                                       |
| Negotiable orders of withdrawal                      |       23,774                            |         23,774                            |       21,582                            |         21,582                            |
| Time deposits                                        |     467,079                                       |       471,887                                       |     508,213                                       |       512,524                                       |
| FHLB Borrowings                                      |       50,000                            |         50,739                            |       50,000                            |         50,270                            |
| Securities sold under repurchase agreements          |         7,000                 |           7,780                 |         7,000                 |           7,778                 |
| Subordinated debentures                              |         8,248                 |           8,248                 |         8,248                 |           8,248                 |
| Accrued interest payable                             |            528 |              528 |            505 |              505 |

----

----

----

----

----

|                                     | March 31,                                                                                                 |   | December 31                                                                                               |
|------------------------------------------|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|                                     | 2010                                                                                                      |   | 2009                                                                                                      |
|                                     |                                                                                                      |   |                                                                                                      |
| U. S. Government Agency obligations      |  $           15,473,875                       |   |  $             5,108,500            |
| U. S. Government Agency mortgage-backed  |                                                                                                      |   |                                                                                                      |
|    securities             |               44,240,019            |   |               40,503,458            |
| Money market preferred equity securities |                 3,286,626 |   |                 3,218,023 |
| Total Available for Sale Securities      |  $           63,000,520                       |   |  $           48,829,981                       |

----

|                                        | March 31,                                                                                                                                               | December 31,                                                                                                                          |
|---------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|
|                                        | 2010                                                                                                                                                    | 2009                                                                                                                                  |
| Real Estate                                 |                                                                                                                                                    |                                                                                                                                  |
|    Commercial                |  $           226,521,896                                                                    |  $           230,225,306                                                  |
|    Residential               |               205,584,121                                                         |               195,571,225                                       |
|    Construction              |               130,986,865                                                         |               154,457,082                                       |
|    Construction to permanent |                 13,396,736                                              |                 15,989,976                            |
| Commercial                                  |                 18,497,228                                              |                 19,298,505                            |
| Consumer home equity                        |                 43,541,316                                              |                 44,309,265                            |
| Consumer installment                        |                   1,347,956                                   |                   1,155,059                 |
| Total Loans                                 |               639,876,118                                                         |               661,006,418                                       |
| Premiums on purchased loans                 |                      130,655                   |                      131,993 |
| Net deferred loan fees                      |                         (3,432) |                     (138,350)     |
| Allowance for loan losses                   |                (15,061,796)                                                  |                (15,794,118)                                |
| Loans receivable, net                       |  $           624,941,545                                                                    |  $           645,205,943                                                  |

----

----

----

|                                                        |   | Three months ended |   |   |
|-------------------------------------------------------------|--------|--------------------|--------|--------|
|                                                        |   | March 31,          |   |   | March 31, |   |   |
| (Thousands of dollars)                                      |   | 2010               |   |   | 2009 |   |   |
|                                                        |   |               |   |   |   |   |   |
| Balance at beginning of period                              |   | $                  | 15,794 |   |   | $ | 16,247 |   |   |
| Charge-offs                                                 |   |               | (1,583 | )      |   |   | (1,216 | ) |   |
| Recoveries                                                  |   |               | 124    |   |   |   | - |   |   |
| Net Charge-offs                                             |   |               | (1,459 | )      |   |   | (1,216 | ) |   |
| Provision charged to operations                             |   |               | 727    |   |   |   | 1,600 |   |   |
| Balance at end of period                                    |   | $                  | 15,062 |   |   | $ | 16,631 |   |   |
|                                                        |   |               |   |   |   |   |   |   |   |
| Ratio of net charge-offs during                             |   |               |   |   |   |   |   |   |   |
|      the period to average loans   |   |               |   |   |   |   |   |   |   |
|      outstanding during the period |   |               | 0.22   | %      |   |   | 0.15 | % |   |
|                                                        |   |               |   |   |   |   |   |   |   |
| Ratio of ALLL / Gross Loans                                 |   |               | 2.35   | %      |   |   | 2.07 | % |   |

|   |                                         | March 31,                                                                                               | December 31,                                                                                                       |   |
|--------|----------------------------------------------|---------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|--------|
|   | (Thousands of dollars)                       | 2010                                                                                                    | 2009                                                                                                               |   |
|   |                                         |                                                                                                    |                                                                                                               |   |
|   | Loans past due over 90 days                  |  $               11,192 |  $                 3,571 |   |
|   |      still accruing |                                                                                                    |                                                                                                               |   |
|   | Non accruing loans                           |                 110,100 |                 113,537            |   |
|   |      Total          |  $             121,292            |  $             117,108                       |   |
|   | % of Total Loans                             | 18.95%                                                                                                  | 17.72%                                                                                                             |   |
|   | % of Total Assets                            | 14.89%                                                                                                  | 13.52%                                                                                                             |   |

----

----

|                    | 2010                                                                      | 2009                                                                      |
|-------------------------|---------------------------------------------------------------------------|---------------------------------------------------------------------------|
|                    |                                                                      |                                                                      |
| Construction            |  $    13,080,399                                 |  $     13,524,597                                |
| Commercial              |         4,512,297                 |         4,934,896                 |
| Land                    |            614,500 |            614,500 |
|                    |                                                                      |                                                                      |
| Other real estate owned |  $    18,207,196                                      |  $     19,073,993                                |

----

|                                                                | March 31,                                                        | December 31,                                                     |
|---------------------------------------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|
|                                                                | 2010                                                             | 2009                                                             |
|                                                                |                                                             |                                                             |
| Non-interest bearing                                                |  $      49,314,543            |  $      49,755,521            |
|                                                                |                                                             |                                                             |
| Interest bearing                                                    |                                                             |                                                             |
|      NOW                                   |          23,774,411 |          21,581,697 |
|      Savings                               |          58,906,759 |          69,766,296 |
|      Money market                          |        112,766,323            |        112,017,987            |
|      Time certificates, less than $100,000 |        284,275,901            |        305,719,484            |
|      Time certificates, $100,000 or more   |        182,802,938            |        202,493,307            |
| Total interest bearing                                              |        662,526,332            |        711,578,771            |
| Total Deposits                                                      |  $    711,840,875                       |  $    761,334,292                       |

----

----

|                               | Three months ended March 31,                                |
|------------------------------------|-------------------------------------------------------------|
|                               |                                                        | 2010 |   |   |   | 2009 |   |
|                               |                                                        | Interest |   |   |   | Interest |   |
|                               | Average                                                     | Income/ | Average |   | Average | Income/ | Average |
|                               | Balance                                                     | Expense | Rate |   | Balance | Expense | Rate |
|                               | (dollars in thousands)                                      |
| Interest earning assets:           |                                                        |   |   |   |   |   |   |
| Loans                              |  $   654,046                            |  $      9,097 | 5.56% |   |  $   809,331 |  $   11,775 | 5.82% |
| Federal funds sold and             |                                                        |   |   |   |   |   |   |
|   other cash equivalents |        53,957            |              35 | 0.26% |   |        36,600 |             15 | 0.16% |
| Investments                        |        66,391            |            559 | 3.37% |   |        54,797 |           569 | 4.15% |
| Total interest                     |                                                        |   |   |   |   |   |   |
|   earning assets         |      774,394                       |          9,691 | 5.01% |   |      900,728 |       12,359 | 5.49% |
|                               |                                                        |   |   |   |   |   |   |
| Cash and due from banks            |        20,268            |   |   |   |        17,375 |   |   |
| Premises and equipment, net        |          6,246 |   |   |   |          7,629 |   |   |
| Allowance for loan losses          |       (15,921)                |   |   |   |       (16,651) |   |   |
| Other assets                       |        49,605            |   |   |   |        30,567 |   |   |
| Total Assets                       |  $   834,592                            |   |   |   |  $   939,648 |   |   |
|                               |                                                        |   |   |   |   |   |   |
| Interest bearing liabilities:      |                                                        |   |   |   |   |   |   |
| Deposits                           |  $   679,451                            |  $      3,117 | 1.84% |   |  $   763,619 |  $     6,243 | 3.27% |
| FHLB advances                      |        50,000            |            419 | 3.36% |   |        50,000 |           419 | 3.35% |
| Subordinated debt                  |          8,248 |              69 | 3.35% |   |          8,248 |             93 | 4.51% |
| Other borrowings                   |          7,000 |              76 | 4.35% |   |          7,000 |             76 | 4.34% |
| Total interest                     |                                                        |   |   |   |   |   |   |
|   bearing liabilities    |      744,699                       |          3,682 | 1.98% |   |      828,867 |         6,831 | 3.30% |
|                               |                                                        |   |   |   |   |   |   |
| Demand deposits                    |        49,926            |   |   |   |        46,842 |   |   |
| Accrued expenses and               |                                                        |   |   |   |   |   |   |
|   other liabilities      |          4,681 |   |   |   |          4,972 |   |   |
| Shareholders' equity               |        35,286            |   |   |   |        58,967 |   |   |
| Total liabilities and equity       |  $   834,592                            |   |   |   |  $   939,648 |   |   |
|                               |                                                        |   |   |   |   |   |   |
| Net interest income                |                                                        |  $      6,009 |   |   |   |  $     5,528 |   |
| Interest margin                    |                                                        |   | 3.10% |   |   |   | 2.45% |
| Interest spread                    |                                                        |   | 3.03% |   |   |   | 2.19% |
|                               |                                                        |   |   |   |   |   |   |

----

|   |                               | Three months ended March 31,                                                                |                                                                                        |
|--------|------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|
|   |                               | 2010 vs 2009                                                                                |                                                                                        |
|   |                               | Increase (decrease) in Interest                                                             |                                                                                        |
|   |                               | Income/Expense                                                                              |                                                                                        |
|   |                               | Due to change in:                                                                           |                                                                                        |
|   |                               | Volume                                                                                      | Rate                                                                                        | Total |   |
|   |                               | (dollars in thousands)                                                                      |                                                                                        |
|   | Interest earning assets:           |                                                                                        |                                                                                        |   |   |
|   | Loans                              |  $    (2,172)                                                      |  $       (506)                                      |  $    (2,678) |   |
|   | Federal funds sold and             |                                                                                        |                                                                                        |   |   |
|   |   other cash equivalents |               5       |              15            |              20 |   |
|   | Investments                        |            108                       |          (119)                                 |            (11) |   |
|   | Total interest                     |                                                                                        |                                                                                        |   |   |
|   |   earning assets         |        (2,059)                                           |          (610)                                 |        (2,669) |   |
|   |                               |                                                                                        |                                                                                        |   |   |
|   | Interest bearing liabilities:      |                                                                                        |                                                                                        |   |   |
|   | Deposits                           |  $       (747)                                      |  $    (2,379)                                                      |  $    (3,126) |   |
|   | FHLB advances                      |                - |                - |                - |   |
|   | Subordinated debt                  |                - |            (24)                      |            (24) |   |
|   | Other borrowings                   |                - |                - |                - |   |
|   | Total interest                     |                                                                                        |                                                                                        |   |   |
|   |   bearing liabilities    |          (747)                                 |        (2,403)                                           |        (3,150) |   |
|   |                               |                                                                                        |                                                                                        |   |   |
|   | Net interest income                |  $    (1,312)                                                      |  $      1,793                                            |  $        481 |   |

----

----

----

|   |                      | March 31, 2010 |   | December 31, 2009 |   |
|--------|---------------------------|----------------|--------|-------------------|--------|
|   | Total Risk-based Capital  | 8.45%          |   | 8.58%             |   |
|   | Tier 1 Risk-based Capital | 7.07%          |   | 7.22%             |   |
|   | Tier 1 Leverage Capital   | 4.78%          |   | 4.72%             |   |

|   |                      | March 31, 2010 |   | December 31, 2009 |   |
|--------|---------------------------|----------------|--------|-------------------|--------|
|   | Total Risk-based Capital  | 8.47%          |   | 8.58%             |   |
|   | Tier 1 Risk-based Capital | 7.09%          |   | 7.22%             |   |
|   | Tier 1 Leverage Capital   | 4.79%          |   | 4.72%             |   |

----

----

----

|                 | Basis     | Interest Rate   | March 31, | December 31, |
|----------------------|-----------|-----------------|-----------|--------------|
|                 | Points    | Risk Guidelines | 2010      | 2009         |
|                 |      |            |      |         |
| GAP percentage total |      | +/- 10%         | 0.52%     | 3.98%        |
| Net interest income  |  200 | +/- 10%         | -9.74%    | 4.67%        |
|                 | -200      | +/- 10%         | 8.56%     | 5.12%        |
| Net portfolio value  |  200 | +/- 20%         | 3.32%     | -8.93%       |
|                 | -200      | +/- 20%         | 0.49%     | -7.42%       |

----

| Net Interest Income and Economic Value |
|----------------------------------------|
| Summary Performance                    |
|                                   |
| March 31, 2010                         |
|                                   | 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                                  |       25,626 |       (2,765) | -9.74% |   |       40,130 |         1,289 | 3.32% |
| + 100                                  |       26,990 |       (1,401) | -4.93% |   |       39,769 |            928 | 2.39% |
| BASE                                   |       28,391 |   |   |   |       38,841 |   |   |
| - 100                                  |       30,488 |         2,097 | 7.39% |   |       37,836 |       (1,005) | -2.59% |
| - 200                                  |       30,821 |         2,430 | 8.56% |   |       39,032 |            192 | 0.49% |
|                                   |   |   |   |   |   |   |   |
| December 31, 2009                      |
|                                   | 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                                  |       20,750 |            925 | 4.67% |   |       49,704 |       (4,872) | -8.93% |
| + 100                                  |       20,113 |            288 | 1.45% |   |       51,762 |       (2,814) | -5.16% |
| BASE                                   |       19,825 |                - |                - |   |       54,576 |                - |                - |
| - 100                                  |       20,557 |            732 | 3.69% |   |       54,945 |            369 | 0.68% |
| - 200                                  |       20,841 |         1,016 | 5.12% |   |       50,525 |       (4,051) | -7.42% |

----

----

----

| 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))                                                                            |

----

|   | No.       | Description                                                                                                                                                                                                                                                                                                                          |
|--------|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      |                                                                                                                                                                                                                                                                                                                                 |
|   | 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)).                                                                                                       |
|   |      |                                                                                                                                                                                                                                                                                                                                 |
|   | 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, 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)(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(a)(15) | Formal Written Agreement between Patriot National Bank and the Office of the Comptroller of the Currency (incorporated by reference to Exhibit 10(a)(15) to Bancorp’s Current Report on Form 8-K dated February 9, 2009 (Commission File No. 000-29599)).                                                 |
|   |      |                                                                                                                                                                                                                                                                                                            |
|   | 10(a)(16) | Securities Purchase Agreement by and among Patriot National Bancorp, Inc., Patriot National Bank and PNBK Holdings LLC dated as of December 16, 2009 (incorporated by reference to Exhibit 10.1 to Bancorp’s Current Report on Form 10-K dated December 17, 2009 (Commission File No. 000-29599)).        |
|   |      |                                                                                                                                                                                                                                                                                                            |
|   | 10(a)(17) | First Amendment to Securities Purchase Agreement by and among Patriot National Bancorp, Inc., Patriot National Bank and PNBK Holdings LLC dated as of May 3, 2010 (incorporated by reference to Exhibit 10(a) to Bancorp’s Current Report on Form 8-K dated May 3, 2010 (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)).                                                                                                                           |

----

|   | No.    | Description                                                                                                                                                                                                                   |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                          |
|   | 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                                                                                                                                                                                                   |

----

|   | 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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