----

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

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

| For      the Quarter Ended September 30, 2008 | Commission      file number 00029599 |
|-----------------------------------------------|--------------------------------------|

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

----

|          |                                                            | Page   |
|---------------|-----------------------------------------------------------------|--------|
|          |                                                            |   |
| Part      I   | FINANCIAL      INFORMATION                                      |   |
|          |                                                            |   |
| Item      1.  | Consolidated      Financial Statements                          | 3      |
|          |                                                            |   |
| Item      2.  | Management’s      Discussion and Analysis of              |   |
|          | Financial      Condition and Results of Operations              | 21     |
|          |                                                            |   |
| Item      3.  | Quantitative      and Qualitative Disclosures about Market Risk | 39     |
|          |                                                            |   |
| Item      4.  | Controls      and Procedures                                    | 42     |
|          |                                                            |   |
|          |                                                            |   |
| Part      II  | OTHER      INFORMATION                                          |   |
|          |                                                            |   |
| Item      1A. | Risk      Factors                                               | 42     |
|          |                                                            |   |
| Item      6.  | Exhibits                                                        | 44     |

----

|                                                                                                                                      | September      30, 2008                                                                                                                                                               |   | December      31, 2007                                                                                                                                                                |
|-------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                      | (Unaudited)                                                                                                                                                                           |   |                                                                                                                                                                                  |
| ASSETS                                                                                                                                    |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| Cash      and due from banks                                                                                                              |  $               7,080,938                                                                            |   |  $               2,760,246                                                                            |
| Federal      funds sold                                                                                                                   |                   5,000,000                                                                 |   |                 11,000,000                                                                            |
| Short      term investments                                                                                                               |                   1,406,383                                                                 |   |                      251,668                                                 |
|      Cash      and cash equivalents                                                                              |              13,487,321                                                                                              |   |              14,011,914                                                                                              |
|                                                                                                                                      |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| Available      for sale securities (at fair value)                                                                                        |                 56,049,085                                                                            |   |                 67,290,040                                                                            |
| Federal      Reserve Bank stock                                                                                                           |                   1,913,200                                                                 |   |                   1,911,700                                                                 |
| Federal      Home Loan Bank stock                                                                                                         |                   4,508,300                                                                 |   |                   2,656,100                                                                 |
| Loans      receivable (net of allowance for loan losses:  2008      $9,502,148;                                                 |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|      2007      $5,672,620)                                                                                       |               790,593,877                                                                                       |   |               685,885,990                                                                                       |
| Accrued      interest receivable                                                                                                          |                   4,691,428                                                                 |   |                   4,576,018                                                                 |
| Premises      and equipment                                                                                                               |                   7,602,514                                                                 |   |                   7,805,565                                                                 |
| Deferred      tax asset, net                                                                                                              |                   4,169,084                                                                 |   |                   2,788,024                                                                 |
| Goodwill      and other intangible assets                                                                                                 |                   1,455,809                                                                 |   |                   1,469,075                                                                 |
| Cash      surrender value of life insurance                                                                                               |                 18,920,652                                                                            |   |                 18,193,684                                                                            |
| Other      assets                                                                                                                         |                   1,369,421                                                                 |   |                      942,144                                                 |
|           Total      assets                                                             |  $       904,760,691                                                                                                                          |   |  $       807,530,254                                                                                                                          |
|                                                                                                                                      |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                                                 |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| Liabilities                                                                                                                               |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|      Deposits:                                                                                                   |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|           Noninterest      bearing deposits                                             |  $             54,145,346                                                                                       |   |  $             51,925,991                                                                                       |
|           Interest      bearing deposits                                                |               677,798,055                                                                                       |   |               620,473,418                                                                                       |
|                Total      deposits                             |            731,943,401                                                                                                         |   |            672,399,409                                                                                                         |
|      Repurchase      agreements                                                                                  |                   7,000,000                                                                 |   |                   7,000,000                                                                 |
|      Federal      Home Loan Bank borrowings                                                                      |                 89,000,000                                                                            |   |                 47,500,000                                                                            |
|      Junior      subordinated debt owed to unconsolidated trust                                                  |                   8,248,000                                                                 |   |                   8,248,000                                                                 |
|      Accrued      expenses and other liabilities                                                                 |                   3,623,208                                                                 |   |                   5,547,478                                                                 |
|                Total      liabilities                          |            839,814,609                                                                                                         |   |            740,694,887                                                                                                         |
|                                                                                                                                      |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| Shareholders'      equity                                                                                                                 |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|      Preferred      stock:  1,000,000 shares authorized; no shares      issued                         |                               - |   |                               - |
|      Common      stock, $2 par value: 60,000,000 shares authorized; shares                                       |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|      issued      2008 4,755,114; outstanding 4,745,263; 2007 issued and                                          |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|      outstanding:  2007      - 4,746,844                                                               |                   9,510,228                                                                 |   |                   9,493,688                                                                 |
|      Additional      paid in capital                                                                             |                 49,633,061                                                                            |   |                 49,549,119                                                                            |
|      Retained      earnings                                                                                      |                   5,842,288                                                                 |   |                   7,846,060                                                                 |
|      Less      Treasury stock at cost:  2008 - 9,851 shares                                            |                    (138,235)                                                           |   |                               - |
|      Accumulated      other comprehensive income - net unrealized gain                                           |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|           (loss)      on available for sale securities, net of taxes                    |                        98,740                                      |   |                      (53,500)                                                |
|                Total      shareholders' equity                 |              64,946,082                                                                                              |   |              66,835,367                                                                                              |
|                Total      liabilities and shareholders' equity |  $       904,760,691                                                                                                                          |   |  $       807,530,254                                                                                                                          |

----

|                                      |                                                                                                    |                                                                                                                                                                      | Three      Months Ended                                                                                                                                                   | Nine      Months Ended                                                                                                                                                    |
|-------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                      |                                                                                                    |                                                                                                                                                                      | September      30,                                                                                                                                                        | September      30,                                                                                                                                                        |
|                                      |                                                                                                    |                                                                                                                                                                      |             2008                                                                                                                            |             2007                                                                                                                            |             2008 |             2007 |
| Interest      and Dividend Income         |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |
|                                      | Interest      and fees on loans                                                                         |  $        12,685,086                                                                                                         |  $        12,279,795                                                                                                         |  $        39,782,456                                                                                                         |  $        33,886,658 |
|                                      | Interest      and dividends on investment securities                                                    |                 759,776                                                                   |                 872,820                                                                   |              2,387,372                                                                                   |              3,043,623 |
|                                      | Interest      on federal funds sold                                                                     |                   28,303                                                        |                 145,539                                                                   |                 125,550                                                                   |                 926,497 |
|                                      |                                                                                                    | Total      interest and dividend income                                                                                                                                   |          13,473,165                                                                                                          |          13,298,154                                                                                                          |          42,295,378 |          37,856,778 |
|                                      |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
| Interest      Expense                     |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |
|                                      | Interest      on deposits                                                                               |              5,585,521                                                                                   |              6,843,693                                                                                   |            20,020,142                                                                                              |            19,434,408 |
|                                      | Interest      on Federal Home Loan Bank borrowings                                                      |                 583,203                                                                   |                   45,735                                                        |              1,265,176                                                                                   |                 166,783 |
|                                      | Interest      on subordinated debt                                                                      |                 123,767                                                                   |                 174,941                                                                   |                 401,664                                                                   |                 519,292 |
|                                      | Interest      on other borrowings                                                                       |                   77,772                                                        |                     2,144                                             |                 231,625                                                                   |                     2,144 |
|                                      |                                                                                                    | Total      interest expense                                                                                                                                               |            6,370,263                                                                                               |            7,066,513                                                                                               |          21,918,607 |          20,122,627 |
|                                      |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
|                                      |                                                                                                    | Net      interest income                                                                                                                                                  |            7,102,902                                                                                               |            6,231,641                                                                                               |          20,376,771 |          17,734,151 |
|                                      |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
| Provision      for Loan Losses            |              3,000,000                 |                             - |              4,545,000                                                                                   |                             - |
|                                      |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
|                                      |                                                                                                    | Net      interest income after                                                                                                                                            |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
|                                      |                                                                                                    |      provision      for loan losses                                                                                                              |            4,102,902                                                                                               |            6,231,641                                                                                               |          15,831,771 |          17,734,151 |
|                                      |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
| Noninterest      Income                   |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |
|                                      | Mortgage      brokerage referral fees                                                                   |                   56,110                                                        |                 133,449                                                                   |                 206,670                                                                   |                 638,160 |
|                                      | Loan      origination & processing fees                                                             |                   75,881                                                        |                   57,131                                                        |                 247,004                                                                   |                 163,375 |
|                                      | Fees      and service charges                                                                           |                 245,766                                                                   |                 213,416                                                                   |                 750,664                                                                   |                 588,797 |
|                                      | Loss      on impaired investment security                                                               |             (1,050,000)                                                                                       |                             - |             (1,050,000)                                                                                       |                             - |
|                                      | Gain      on redemption of investment securities                                                        |                             - |                             - |                             - |                     5,000 |
|                                      | Earnings      on cash surrender value of life insurance                                                 |                 237,235                                                                   |                             - |                 726,968                                                                   |                             - |
|                                      | Gain      on sale of other real estate owned                                                            |                             - |                   86,473                                                        |                             - |                   86,473 |
|                                      | Other      income                                                                                       |                 131,444                                                                   |                   61,063                                                        |                 329,882                                                                   |                 181,118 |
|                                      |                                                                                                    | Total      noninterest income                                                                                                                                             |              (303,564)                                                                                   |               551,532                                                                               |            1,211,188 |            1,662,923 |
|                                      |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
| Noninterest      Expenses                 |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |
|                                      | Salaries      and benefits                                                                              |              3,006,518                                                                                   |              3,005,582                                                                                   |              9,670,358                                                                                   |              9,181,398 |
|                                      | Occupancy      and equipment expense, net                                                               |              1,356,155                                                                                   |              1,148,430                                                                                   |              3,841,503                                                                                   |              3,108,686 |
|                                      | Data      processing and other outside services                                                         |                 250,344                                                                   |                 458,378                                                                   |                 1,338,257                                                                 |              1,358,612 |
|                                      | Professional      services                                                                              |                 247,493                                                                   |                 128,671                                                                   |                 700,638                                                                   |                 354,876 |
|                                      | Advertising      and promotional expenses                                                               |                 189,669                                                                   |                 174,908                                                                   |                 618,839                                                                   |                 582,586 |
|                                      | Loan      administration and processing expenses                                                        |                   77,217                                                        |                   55,538                                                        |                 197,533                                                                   |                 146,512 |
|                                      | Regulatory      assessments                                                                             |                 191,103                                                                   |                 169,061                                                                   |                 554,909                                                                   |                 412,728 |
|                                      | Other      real estate operations                                                                       |                             - |                  (30,687)                                                            |                             - |                  (48,243) |
|                                      | Other      noninterest expenses                                                                         |                 677,921                                                                   |                 462,567                                                                   |              1,666,807                                                                                   |              1,371,426 |
|                                      |                                                                                                    | Total      noninterest expenses                                                                                                                                           |            5,996,420                                                                                               |            5,572,448                                                                                               |          18,588,844 |          16,468,581 |
|                                      |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
|                                      |                                                                                                    | Income/(loss)      before income taxes                                                                                                                                    |          (2,197,082)                                                                                                         |            1,210,725                                                                                               |          (1,545,885) |            2,928,493 |
|                                      |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
| Benefit/(Provision)      for Income Taxes |                 288,000 |                (470,000)                                                                       |                 183,000                                                                   |             (1,137,000)                                                                                       |
|                                      |                                                                                                    |                                                                                                                                                                      |                                                                                                                                                                      |                                                                                                                                                                      |   |   |
|                                      |                                                                                                    | Net      income/(loss)                                                                                                                                                    |  $      (1,909,082)                                                                                                                    |  $           740,725                                                                                          |  $      (1,362,885) |  $        1,791,493 |
|                                      |                                                                                                    | Basic      income/(loss) per Share                                                                                                                                        |  $                (0.40)                                                             |  $                  0.16                                                   |  $                (0.29) |  $                  0.38 |
|                                      |                                                                                                    | Diluted      income/(loss) per Share                                                                                                                                      |  $                (0.40)                                                             |  $                  0.16                                                   |  $                (0.29) |  $                  0.38 |
|                                      |                                                                                                    | Dividends      per share                                                                                                                                                  |  $               0.045                                                               |  $                0.045                                                              |  $               0.135  |  $                0.135 |

----

|                                                                |                                                                                                               | Three      Months Ended                                                                              |                                                                                                    | Nine      Months Ended                                                                                           |
|---------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------|
|                                                                |                                                                                                               | September      30,                                                                                   |                                                                                                    | September      30,                                                                                               |
|                                                                |                                                                                                               |                      2008 |                                                                                                    |                        2007 |   |                 2008 |   |                 2007 |
|                                                                |                                                                                                               |                                                                                                 |                                                                                                    |                                                                                                             |   |   |   |   |
| Net      income                                                     |                                                                                                               |  $         (1,909,082)                             |                                                                                                    |  $             740,725                     |   |  $      (1,362,885) |   |  $       1,791,493 |
|                                                                |                                                                                                               |                                                                                                 |                                                                                                    |                                                                                                             |   |   |   |   |
| Unrealized      holding gains on securities:                        |                                                                                                               |                                                                                                 |                                                                                                    |                                                                                                             |   |   |   |
|      Unrealized      holding gains arising |                                                                                                               |                                                                                                 |                                                                                                    |                                                                                                             |   |   |   |
|      during      the period, net of taxes  |                   69,425 |                                                                                                 |                 297,166 |                                                                                                             |              152,240 |   |              459,538 |
|                                                                |                                                                                                               |                                                                                                 |                                                                                                    |                                                                                                             |   |   |   |   |
| Comprehensive      income                                           |  $      (1,839,657)                                                             |                                                                                                 |  $        1,037,891                                        |                                                                                                             |  $   (1,210,645) |   |  $     2,251,031 |
|                                                                |                                                                                                               |                                                                                                 |                                                                                                    |                                                                                                             |   |   |   |   |

----

|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |  Accumulated                                                                     |                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------|-------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------|-----------------------------------------------------------|----------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |  Other                                                                           |                                                                                             |
|                                                                                                                      |  Number      of                                                    |  Common                                                                              |  Paid-In                                                                              |  Retained                                            |  Treasury                                                                               |  Comprehensive                                                                   |                                                                                             |
|                                                                                                                      |  Shares                                                            |  Stock                                                                               |  Capital                                                                              |  Earnings                                            |  Stock                                                                                  |  Gain      (Loss)                                                                |  Total                                                                                      |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Nine      months ended September 30, 2007                                                                                 |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Balance      at December 31, 2006                                                                                         |     4,739,494                                       |  $    9,478,988                                                  |  $    49,463,307                                                  |  $   6,022,012                        |  $              - |  $         (680,962)                |  $     64,283,345                                                  |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Comprehensive      income                                                                                                 |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
|   Net      income                                                                                               |                                                                    |                                                                                      |                                                                                       |       1,791,493             |                                                                                         |                                                                                  |           1,791,493                            |
|   Unrealized      holding gain on available for                                                                 |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |
|      sale      securities, net of taxes                                                          |                                                                    |                                                                                      |                                                                                       |                                                      |               459,538  |              459,538 |
|                Total      comprehensive income |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |           2,251,031                 |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Issuance      of common stock                                                                                             |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
|    Stock      options exercised                                                                            |            5,000 |             10,000            |               40,551 |                                                      |                                                                                         |                                                                                  |                50,551 |
|    Stock      issued to directors                                                                          |            2,350 |               4,700 |               45,261 |                                                      |                                                                                         |                                                                                  |                49,961 |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Dividends                                                                                                                 |                                                                    |                                                                                      |                                                                                       |         (640,270) |                                                                                         |                                                                                  |            (640,270)                      |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Balance,      September 30, 2007                                                                                          |     4,746,844                                       |  $  9,493,688                                                              |  $  49,549,119                                                              |  $ 7,173,235                                    |  $              - |  $   (221,424)                                                    |  $  65,994,618                                                                    |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Nine      months ended September 30, 2008                                                                                 |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Balance      at December 31, 2007                                                                                         |     4,746,844                                       |  $    9,493,688                                                  |  $    49,549,119                                                  |  $   7,846,060                        |  $              - |  $           (53,500)     |  $     66,835,367                                                  |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Comprehensive      income                                                                                                 |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
|   Net      loss                                                                                                 |                                                                    |                                                                                      |                                                                                       |      (1,362,885)                 |                                                                                         |                                                                                  |         (1,362,885)                                      |
|   Unrealized      holding gain on available for                                                                 |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |
|      sale      securities, net of taxes                                                          |                                                                    |                                                                                      |                                                                                       |                                                      |               152,240  |              152,240 |
|                Total      comprehensive loss   |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |         (1,210,645)                           |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Issuance      of common stock                                                                                             |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
|    Stock      options exercised                                                                            |            5,000 |             10,000            |               40,550 |                                                      |                                                                                         |                                                                                  |                50,550 |
|    Stock      issued to directors                                                                          |            3,270 |               6,540 |               43,392 |                                                      |                                                                                         |                                                                                  |                49,932 |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |              100,482            |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Treasury      Stock                                                                                                       |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
|    Stock      purchased under buyback                                                                      |                                                                    |                                                                                      |                                                                                       |     (138,235)                         |                                                                                         |            (138,235)           |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Dividends                                                                                                                 |                                                                    |                                                                                      |                                                                                       |         (640,887) |                                                                                         |                                                                                  |            (640,887)                      |
|                                                                                                                      |                                                                    |                                                                                      |                                                                                       |                                                      |                                                                                         |                                                                                  |                                                                                             |
| Balance,      September 30, 2008                                                                                          |     4,755,114                                       |  $  9,510,228                                                              |  $  49,633,061                                                              |  $ 5,842,288                                    |  $      (138,235)                                                                       |  $  98,740                                                             |  $  64,946,082                                                                    |

----

|                                       |                                                                                  | Nine      Months Ended                                                                                                                       |
|--------------------------------------------|---------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |                                                                                  | September      30,                                                                                                                           |
|                                       |                                                                                  | 2008                                                                                                                                         | 2007 |
|                                       |                                                                                  |                                                                                                                                         |   |
| Cash      Flows from Operating Activities: |                                                                                  |                                                                                                                                         |
|                                       | Net      (loss) income                                                                |  $      (1,362,885)                                                                                       |  $       1,791,493 |
|                                       | Adjustments      to reconcile net income to net cash                                  |                                                                                                                                         |   |
|                                       | provided      by operating activities:                                                |                                                                                                                                         |   |
|                                       | Amortization      and accretion of investment premiums and discounts, net             |               114,453                                                  |              142,909 |
|                                       | Provision      for loan losses                                                        |            4,545,000                                                                  |                        - |
|                                       | Loss      on impaired investment security                                             |            1,050,000                                                                  |                        - |
|                                       | Gain      on sale of other real estate owned                                          |                        -  |               (86,473) |
|                                       | Gain      on redemption of investment security                                        |                        -  |                 (5,000) |
|                                       | Amortization      of core deposit intangible                                          |                 13,266                                       |                13,932 |
|                                       | Earnings      on cash surrender value of life insurance                               |             (726,968)                                                            |                        - |
|                                       | Depreciation      and amortization                                                    |            1,197,200                                                                  |              867,438 |
|                                       | Loss      on disposal of bank premises and equipment                                  |                        46 |                  2,896 |
|                                       | Payment      of fees to directors in common stock                                     |                 49,932                                       |                49,961 |
|                                       | Deferred      Income Taxes                                                            |          (1,474,368)                                                                            |                        - |
|                                       | Changes      in assets and liabilities:                                               |                                                                                                                                         |   |
|                                       |      (Decrease)      increase in deferred loan fees          |             (553,329)                                                            |              284,154 |
|                                       |      Increase      in accrued interest receivable            |             (115,410)                                                            |             (988,075) |
|                                       |      Increase      in other assets                           |             (427,277)                                                            |             (158,269) |
|                                       |      Decrease      in accrued expenses and other liabilities |          (1,923,735)                                                                            |             (257,665) |
|                                       |      Net      cash provided by operating activities          |             385,925                                                              |         1,657,301 |
|                                       |                                                                                  |                                                                                                                                         |   |
| Cash      Flows from Investing Activities: |                                                                                  |                                                                                                                                         |
|                                       | Purchases      of available for sale securities                                       |        (18,366,036)                                                                                       |          (4,985,925) |
|                                       | Principal      repayments on available for sale securities                            |          19,688,086                                                                             |           9,981,571 |
|                                       | Proceeds      from redemptions of available for sale securities                       |            9,000,000                                                                  |           2,005,000 |
|                                       | Purchases      of Federal Reserve Bank Stock                                          |                 (1,500)                                      |                        - |
|                                       | Purchases      of Federal Home Loan Bank Stock                                        |          (1,852,200)                                                                            |             (938,900) |
|                                       | Net      increase in loans                                                            |      (108,699,558)                                                                                                  |      (134,826,902) |
|                                       | Capital      improvements to other real estate owned                                  |                        -  |             (156,700) |
|                                       | Proceeds      from sale of other real estate owned                                    |                        -  |           1,077,515 |
|                                       | Purchase      of bank premises and equipment                                          |             (994,195)                                                            |          (4,144,980) |
|                                       |      Net      cash used in investing activities              |   (101,225,403)                                                                                                                    |   (131,989,321) |
|                                       |                                                                                  |                                                                                                                                         |   |
| Cash      Flows from Financing Activities: |                                                                                  |                                                                                                                                         |
|                                       | Net      increase(decrease) in demand, savings and money market      deposits         |          36,398,254                                                                             |             (691,603) |
|                                       | Net      increase in time certificates of deposits                                    |          23,145,738                                                                             |         95,742,284 |
|                                       | Net      proceeds from FHLB borrowings                                                |          41,500,000                                                                             |         27,000,000 |
|                                       | Proceeds      from issuance of common stock                                           |                 50,550                                       |                50,550 |
|                                       | Payments      under stock buyback program                                             |             (138,235)                                                            |                        - |
|                                       | Dividends      paid on common stock                                                   |             (641,422)                                                            |             (639,939) |
|                                       |      Net      cash provided by financing activities          |     100,314,885                                                                                                          |    121,461,292 |
|                                       |                                                                                  |                                                                                                                                         |   |
|                                       |      Net      increase in cash and cash equivalents          |           (524,593)                                                                        |       (8,870,728) |

----

|                                                                         |                                               | Nine      Months Ended                                                           |
|------------------------------------------------------------------------------|----------------------------------------------------|----------------------------------------------------------------------------------|
|                                                                         |                                               | September      30,                                                               |
|                                                                         |                                               | 2008                                                                             | 2007 |
|                                                                         |                                               |                                                                             |   |
| Cash      and Cash Equivalents:                                              |                                               |                                                                             |
|                                                                         | Beginning                                          |          14,011,914                 |         55,474,539 |
|                                                                         |                                               |                                                                             |   |
|                                                                         | Ending                                             |  $      13,487,321                            |  $     46,603,811 |
|                                                                         |                                               |                                                                             |   |
|                                                                         |                                               |                                                                             |   |
| Supplemental      Disclosures of Cash Flow Information                       |                                               |                                                                             |
|                                                                         | Cash      paid for:                                |                                                                             |   |
|                                                                         |      Interest             |  $      21,741,157                            |  $     20,088,558 |
|                                                                         |                                               |                                                                             |   |
|                                                                         |      Income      taxes    |  $        1,231,245                 |  $       1,151,728 |
|                                                                         |                                               |                                                                             |   |
| Supplemental      disclosures of noncash investing and financing activities: |                                               |                                                                             |
|                                                                         |                                               |                                                                             |   |
|                                                                         | Unrealized      holding gain on available for sale |                                                                             |   |
|                                                                         | securities      arising during the period          |  $           245,548 |  $          741,190 |
|                                                                         |                                               |                                                                             |   |
|                                                                         | Dividends      declared on common stock            |  $           213,073 |  $          213,608 |

----

----

| Three      months ended September 30, 2008                                     |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|--------------------------------------------------------------------------------|---------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------------------------------------------------------------------|---------|---------------------------------------------------------------|
|                                                                           |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|                                                                           |                | Net      Income                                                                                                                                                                             |   | Shares                                                                                                             |    | Amount                                                        |
| Basic      Income Per Share                                                    |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    Income      available to common shareholders                 |   $       |             (1,909,082)                                                                                                         |   |              4,749,534                            |  $ | (0.40)                                                        |
|      Effect      of Dilutive Securities               |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|         Stock      Options outstanding |                |                                - |   |                   14,571 |    |           - |
| Diluted      Income Per Share                                                  |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    Income      available to common shareholders                 |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    plus      assumed conversions                                |   $  |            (1,909,082)                                                                                                               |   |              4,764,105                            |  $ | (0.40)                                                        |
|                                                                           |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
| Three      months ended September 30, 2007                                     |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|                                                                           |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|                                                                           |                | Net      Income                                                                                                                                                                             |   | Shares                                                                                                             |    | Amount                                                        |
| Basic      Income Per Share                                                    |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    Income      available to common shareholders                 |   $       |                  740,725                                                                               |   |              4,744,453                            |  $ | 0.16                                                          |
|      Effect      of Dilutive Securities               |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|         Stock      Options outstanding |                |                                - |   |                   30,353 |    |           - |
| Diluted      Income Per Share                                                  |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    Income      available to common shareholders                 |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    plus      assumed conversions                                |   $  |                 740,725                                                                                     |   |              4,774,806                            |  $ | 0.16                                                          |
|                                                                           |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
| Nine      months ended September 30, 2008                                      |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|                                                                           |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|                                                                           |                | Net      Income                                                                                                                                                                             |   | Shares                                                                                                             |    | Amount                                                        |
| Basic      Income Per Share                                                    |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    Income      available to common shareholders                 |   $  |            (1,362,885)                                                                                                               |   |              4,750,584                            |  $ | (0.29)                                                        |
|      Effect      of Dilutive Securities               |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|         Stock      Options outstanding |                |                                - |   |                   17,382 |    |           - |
| Diluted      Income Per Share                                                  |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    Income      available to common shareholders                 |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    plus      assumed conversions                                |   $  |            (1,362,885)                                                                                                               |   |              4,767,966                            |  $ | (0.29)                                                        |
|                                                                           |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
| Nine      months ended September 30, 2007                                      |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|                                                                           |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|                                                                           |                | Net      Income                                                                                                                                                                             |   | Shares                                                                                                             |    | Amount                                                        |
| Basic      Income Per Share                                                    |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    Income      available to common shareholders                 |   $  |              1,791,493                                                                                                     |   |              4,741,182                            |  $ | 0.38                                                          |
|      Effect      of Dilutive Securities               |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|         Stock      Options outstanding |                |                                - |   |                   34,536 |    |           - |
| Diluted      Income Per Share                                                  |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    Income      available to common shareholders                 |                |                                                                                                                                                                                        |   |                                                                                                               |    |                                                          |
|    plus      assumed conversions                                |   $       |               1,791,493                                                                                               |   |              4,775,718                            |  $ | 0.38                                                          |

----

|                                   | Three      Months Ended                                                                                                   |                                                                                                                      | Nine      Months Ended                                                                                                    |
|----------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------|
|                                   | September      30, 2008                                                                                                   |                                                                                                                      | September      30, 2008                                                                                                   |
|                                   | Before      Tax                                                                                                           |                                                                                                                      | Net      of Tax                                                                                                           |   |  Before      Tax |   |  Net      of Tax |
|                                   | Amount                                                                                                                    | Tax      Effect                                                                                                           | Amount                                                                                                                    |   |  Amount |  Tax      Effect |  Amount |
|                                   |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Unrealized      holding losses         |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| arising      during the period         |  $    (938,024)                                                                                  |  $     361,449                                                                              |  $   (576,575)                                                                                        |   |  $   (804,452) |  $    310,692 |  $   (493,760) |
|                                   |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Reclassification      adjustment       |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| for      losses recognized in income   |        1,050,000                                                                       |         (404,000)                                                                 |           646,000                                                       |   |        1,050,000 |         (404,000) |           646,000 |
|                                   |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Unrealized      holding losses         |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| on      available for sale securities, |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| net      of taxes                      |  $    111,976                                                                                    |  $    (42,551)                                                                                   |  $     69,425                                                                               |   |  $    245,548 |  $    (93,308) |  $   152,240 |
|                                   |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
|                                   | Three      Months Ended                                                                                                   |                                                                                                                      | Nine      Months Ended                                                                                                    |
|                                   | September      30, 2007                                                                                                   |                                                                                                                      | September      30, 2007                                                                                                   |
|                                   | Before      Tax                                                                                                           |                                                                                                                      | Net      of Tax                                                                                                           |   |  Before      Tax |   |  Net      of Tax |
|                                   | Amount                                                                                                                    | Tax      Effect                                                                                                           | Amount                                                                                                                    |   |  Amount |  Tax      Effect |  Amount |
|                                   |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Unrealized      holding gain           |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| arising      during the period         |  $    479,301                                                                                    |  $   (182,135)                                                                                        |  $   297,166                                                                                          |   |  $    741,190 |  $   (281,652) |  $   459,538 |
|                                   |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Reclassification      adjustment       |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| for      gains recognized in income    |                     - |                     - |                     - |   |                       - |                       - |                       - |
|                                   |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| Unrealized      holding gain           |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| on      available for sale securities, |                                                                                                                      |                                                                                                                      |                                                                                                                      |   |   |   |   |
| net      of taxes                      |  $   479,301                                                                                          |  $    (182,135)                                                                                  |  $    297,166                                                                                    |   |  $   741,190 |  $   (281,652) |  $   459,538 |

----

|   | Commitments      to extend credit:       |                                                                              |                                                                   |
|--------|------------------------------------------|-----------------------------------------------------------------------------------|------------------------------------------------------------------------|
|   |                                     | Future      loan commitments                                                      |  $       31,750,801            |   |
|   |                                     | Unused      lines of credit                                                       |           58,809,785 |   |
|   |                                     | Undisbursed      construction loans                                               |           90,177,968 |   |
|   | Financial      standby letters of credit |             1,481,600 |                                                                   |
|   |                                     |                                                                              |  $     182,220,154                       |   |

----

----

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

----

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

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

----

|                               |   | Level      1 |   |   | Level      2 |   |       | Level      3    |   |   | Total  |   |
|------------------------------------|--------|--------------|--------|--------|--------------|--------|------------|-----------------|--------|--------|--------|--------|
|                               |   | Inputs       |   | Inputs |         | Inputs |       | Fair      Value |   |
|                               |   |         |   |   |         |   |       |            |   |   |   |   |
| Securities      available for sale |   | $            | -      |   |         | $      | 56,049,085 |            |   | $      | -      |   |   | $ | 56,049,085 |   |

|                    |   | Level      1 |   |   | Level      2 |   |   | Level      3    |   |   | Total      |   |
|-------------------------|--------|--------------|--------|--------|--------------|--------|--------|-----------------|--------|--------|------------|--------|
|                    |   | Inputs       |   | Inputs |         | Inputs |   | Fair      Value |   |
|                    |   |         |   |   |         |   |   |            |   |   |       |   |
| Impaired      Loans (1) |   | $            | -      |   |         | $      | -      |            |   | $      | 28,569,719 |   |   | $ | 28,569,719 |   |

----

|                                                     |   |      |       |   | Gross      |   |    | Gross      |   |     |     |      |
|----------------------------------------------------------|--------|-----------|------------|--------|------------|--------|---------|------------|--------|----------|----------|-----------|
|                                                     |   | Amortized |       |   | Unrealized |   |    | Unrealized |   |     | Fair     |      |
|                                                     |   | Cost      |       | Gains  |       | Losses |    | Value      |   |
| U.      S. Government sponsored                          |   |      |       |   |       |   |    |       |   |     |     |      |
|    agency      obligations                |   | $         | 10,000,000 |   |       | $      | 86,300  |       |   | $        | -        |      |   | $ | 10,086,300 |   |
| U.      S. Government Agency and sponsored               |   |      |       |   |       |   |    |       |   |     |     |      |   |   |   |   |
|    agency      mortgage-backed securities |   |      | 39,895,428 |   |       |   | 185,111 |       |   |     | (112,153 | )         |   |   | 39,968,386 |   |
| Money      market preferred                              |   |      |       |   |       |   |    |       |   |     |     |      |   |   |   |   |
|   equity      securities                       |   |      | 5,994,399  |   |       | -      |    |       | -      |     |     | 5,994,399 |   |
| Total      Available For Sale Securities                 |   | $         | 55,889,827 |   |       | $      | 271,411 |       | $      | (112,153 | )        |      | $ | 56,049,085 |   |

----

|                              |   | Nine      months ended |      |
|-----------------------------------|--------|------------------------|-----------|
|                              |   | September      30,     |      |
| (Thousands      of dollars)       |   | 2008                   |      | 2007 |   |
|                              |   |                   |      |   |   |   |
| Balance      at beginning of year |   | $                      | 5,672,620 |   |   | $ | 5,630,432 |   |
| Provision      for loan losses    |   |                   | 4,545,000 |   |   |   | - |   |
| Charge-offs                       |   |                   | (716,225  | ) |   |   | (32,812 | ) |
| Recoveries                        |   |                   | 754       |   |   | - |   |
| Balance      at end of period     |   | $                      | 9,502,148 |   | $ | 5,597,620 |   |

|                                                       |   | September      30, |       |   | December      31, |   |
|------------------------------------------------------------|--------|--------------------|------------|--------|-------------------|--------|
|                                                       |   | 2008               |       |   | 2007              |   |
|                                                       |   |               |       |   |              |   |
| Impaired      loans receiveable for which there is a       |   |               |       |   |              |   |
|    related      allowance for credit losses |   | $                  | 917,887    |   |              | $      | 1,332,359 |   |
|                                                       |   |               |       |   |              |   |   |   |
| Impaired      loans receiveable for which there is no      |   |               |       |   |              |   |   |   |
|    related      allowance for credit losses |   | $                  | 27,651,832 |   |              | $      | 2,499,281 |   |
|                                                       |   |               |       |   |              |   |   |   |
| Allowance      for credit losses related to impaired loans |   | $                  | 277,887    |   |              | $      | 250,000 |   |
|                                                       |   |               |       |   |              |   |   |   |
| Average      recorded investment in impaired loans         |   | $                  | 8,856,518  |   |              | $      | 3,149,223 |   |

----

----

----

----

----

----

----

|                                                     |  September      30, |  December      31, |
|----------------------------------------------------------|--------------------------|-------------------------|
|                                                     |                     | 2008                    |   |   | 2007 |   |
|                                                     |                     |                    |   |   |   |   |
| U.      S. Government sponsored                          |                     |                    |   |   |   |   |
|   agency      obligations                      |                     | $                       | 10,086,300 |   |   | $ | 16,924,648 |   |
| U.      S. Government Agency and sponsored               |                     |                    |   |   |   |   |   |   |
|    agency      mortgage-backed securities |                     |                    | 39,968,386 |   |   |   | 41,325,870 |   |
| Money      market preferred                              |                     |                    |   |   |   |   |   |   |
|   equity      securities                       |                     |                    | 5,994,399 |   |   |   | 9,039,522 |   |
| Total      Available for Sale Securities                 |                     | $                       | 56,049,085 |   |   | $ | 67,290,040 |   |

----

|                                             |  September      30, |  December      31, |
|--------------------------------------------------|--------------------------|-------------------------|
|                                             |                     | 2008                    |   | 2007 |   |
| Real      Estate                                 |                     |                    |   |   |   |   |
|    Commercial                     |                     | $                       | 264,065,297 |   |   | $ | 233,121,685 |   |
|    Residential                    |                     |                    | 155,749,740 |   |   |   | 110,154,838 |   |
|    Construction                   |                     |                    | 256,653,082 |   |   |   | 254,296,326 |   |
|    Construction      to permanent |                     |                    | 38,551,811 |   |   |   | 37,701,509 |   |
| Commercial                                       |                     |                    | 41,026,327 |   |   |   | 27,494,531 |   |
| Consumer      installment                        |                     |                    | 942,685 |   |   |   | 1,270,360 |   |
| Consumer      home equity                        |                     |                    | 44,225,084 |   |   | 29,154,498 |   |
| Total      Loans                                 |                     |                    | 801,214,026 |   |   |   | 693,193,747 |   |
| Premiums      on purchased loans                 |                     |                    | 159,612 |   |   |   | 195,805 |   |
| Net      deferred fees                           |                     |                    | (1,277,613 | ) |   |   | (1,830,942 | ) |
| Allowance      for loan losses                   |                     |                    | (9,502,148 | ) |   |   | (5,672,620 | ) |
| Loans      receivable, net                       |                     | $                       | 790,593,877 |   |   | $ | 685,885,990 |   |

----

|   |                                              |        September      30,                                                       |    December      31,                                                                                                |   |
|--------|---------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | (Thousands      of dollars)                       |       2008                                                                           |       2007                                                                                           |   |
|   |                                              |                                                                                                               |                                                                                                                               |   |
|   | Loans      past due over 90 days                  |  $                 2,464 |  $                    112 |   |
|   |      still      accruing |                                                                                                               |                                                                                                                               |   |
|   | Non      accruing loans                           |                   28,570 |                     3,832      |   |
|   |      Total               |  $               31,034            |  $                 3,944                 |   |
|   | %      of Total Loans                             | 3.88%                                                                                                              | 0.57%                                                                                                                              |   |
|   | %      of Total Assets                            | 3.44%                                                                                                              | 0.49%                                                                                                                              |   |

----

|                                                              | Three      months ending                                                                                |                                                                                                          | Nine      months ending  |
|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|--------------------------|
|                                                              |  September      30,                                                                                |                                                                                                          |  September      30, |
| (Thousands      of dollars)                                       |               2008                                              |                 2007                                        |                     |               2008 |                2007 |
|                                                              |                                                                                                    |                                                                                                          |                     |   |   |
| Balance      at beginning of period                               |  $       7,218                                                  |  $       5,598                                                        |                     |  $       5,673 |  $       5,630 |
| Charge-offs                                                       |             (716)                           |                   - |                     |             (716) |               (32) |
| Recoveries                                                        |                  1 |                   - |                     |                  1 |                   - |
| Net      (charge-offs) recoveries                                 |             (715)                           |                   - |                     |             (715) |               (32) |
| Provision      charged to operations                              |           3,000                                       |                   - |                     |           4,545 |                   - |
| Balance      at end of period                                     |  $       9,502                                                  |  $       5,598                                                        |                     |  $       9,502 |  $       5,598 |
|                                                              |                                                                                                    |                                                                                                          |                     |   |   |
| Ratio      of net (charge-offs) during                            |                                                                                                    |                                                                                                          |                     |   |   |
|      the      period to average loans    |                                                                                                    |                                                                                                          |                     |   |   |
|      outstanding      during the period. | -0.09%                                                                                                  | 0.00%                                                                                                         |                     | -0.09% | -0.01% |

----

----

|                                                                     |   | September      30, |        |   | December      31, |        |
|--------------------------------------------------------------------------|--------|--------------------|-------------|--------|-------------------|-------------|
|                                                                     |   | 2008               |        | 2007   |              |
|                                                                     |   |               |        |   |              |        |
| Non-interest      bearing                                                |   | $                  | 54,145,346  |   | $                 | 51,925,991  |   |
|                                                                     |   |               |        |   |              |        |   |   |
| Interest      bearing                                                    |   |               |        |   |              |        |   |   |
|      NOW                                        |   |               | 19,002,322  |   |              |        | 19,462,123 |   |
|      Savings                                    |   |               | 41,739,357  |   |              |        | 34,261,389 |   |
|      Money      market                          |   |               | 62,041,569  |   |              |        | 34,880,837 |   |
|      Time      certificates, less than $100,000 |   |               | 372,631,862 |   |              |        | 300,502,281 |   |
|      Time      certificates, $100,000 or more   |   |               | 182,382,945 |   |              | 231,366,788 |   |
| Total      interest bearing                                              |   |               | 677,798,055 |   |              | 620,473,418 |   |
| Total      Deposits                                                      |   | $                  | 731,943,401 |   | $                 | 672,399,409 |   |
|                                                                     |   |               |        |   |              |        |   |   |

----

----

|                                    |   | Three months ended      September 30, |    |
|-----------------------------------------|--------|---------------------------------------|---------|
|                                    |   |  2008                            |    |   |  2007 |   |
|                                    |   |                                  |    |   | Interest |   |   |   |   |   |   |   |   | Interest |   |   |   |   |
|                                    |   | Average                               |    |   | Income/ |   |   | Average |   |   | Average |   |   | Income/ |   |   | Average |   |
|                                    |   | Balance                               |    |   | Expense |   |   | Rate |   |   | Balance |   |   | Expense |   |   | Rate |   |
|                                    |   | (dollars      in thousands)           |    |
| Interest      earning assets:           |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans                                   |   | $                                     | 788,837 |   |   | $ | 12,685 |   |   |   | 6.43 | % |   | $ | 619,672 |   |   | $ | 12,280 |   |   |   | 7.93 | % |
| Federal      funds sold and             |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   other      cash equivalents |   |                                  | 7,786   |   |   |   | 39 |   |   |   | 2.00 | % |   |   | 26,414 |   |   |   | 342 |   |   |   | 5.18 | % |
| Investments                             |   |                                  | 64,056  |   |   | 749 |   |   | 4.68 | % |   |   | 64,718 |   |   | 676 |   |   | 4.18 | % |
| Total      interest                     |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   earning      assets         |   |                                  | 860,679 |   |   | 13,473 |   |   | 6.26 | % |   |   | 710,804 |   |   | 13,298 |   |   | 7.48 | % |
|                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash      and due from banks            |   |                                  | 4,648   |   |   |   |   |   |   |   |   |   |   |   | 3,889 |   |   |   |   |   |   |   |   |   |
| Premises      and equipment, net        |   |                                  | 7,517   |   |   |   |   |   |   |   |   |   |   |   | 6,515 |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses          |   |                                  | (8,358  | ) |   |   |   |   |   |   |   |   |   |   | (5,598 | ) |   |   |   |   |   |   |   |   |
| Other      assets                       |   |                                  | 29,153  |   |   |   |   |   |   |   |   |   |   |   | 10,283 |   |   |   |   |   |   |   |   |   |
| Total      Assets                       |   | $                                     | 893,639 |   |   |   |   |   |   |   |   |   |   | $ | 725,893 |   |   |   |   |   |   |   |   |   |
|                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing liabilities:      |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                |   | $                                     | 665,379 |   |   | $ | 5,585 |   |   |   | 3.36 | % |   | $ | 586,834 |   |   | $ | 6,843 |   |   |   | 4.66 | % |
| FHLB      advances                      |   |                                  | 86,451  |   |   |   | 583 |   |   |   | 2.70 | % |   |   | 3,706 |   |   |   | 46 |   |   |   | 4.96 | % |
| Subordinated      debt                  |   |                                  | 8,248   |   |   |   | 124 |   |   |   | 6.01 | % |   |   | 8,248 |   |   |   | 175 |   |   |   | 8.49 | % |
| Other      borrowings                   |   |                                  | 7,000   |   |   | 78 |   |   | 4.46 | % |   |   | 163 |   |   | 2 |   |   | 4.91 | % |
| Total      interest                     |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   bearing      liabilities    |   |                                  | 767,078 |   |   | 6,370 |   |   | 3.32 | % |   |   | 598,951 |   |   | 7,066 |   |   | 4.72 | % |
|                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand      deposits                    |   |                                  | 56,462  |   |   |   |   |   |   |   |   |   |   |   | 55,060 |   |   |   |   |   |   |   |   |   |
| Accrued      expenses and               |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   other      liabilities      |   |                                  | 3,345   |   |   |   |   |   |   |   |   |   |   |   | 5,949 |   |   |   |   |   |   |   |   |   |
| Shareholders'      equity               |   |                                  | 66,754  |   |   |   |   |   |   |   |   |   |   |   | 65,933 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and equity       |   | $                                     | 893,639 |   |   |   |   |   |   |   |   |   |   | $ | 725,893 |   |   |   |   |   |   |   |   |   |
|                                    |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                |   |                                  |    |   |   | $ | 7,103 |   |   |   |   |   |   |   |   |   |   | $ | 6,232 |   |   |   |   |   |
| Interest      margin                    |   |                                  |    |   |   |   |   |   |   |   | 3.30 | % |   |   |   |   |   |   |   |   |   |   | 3.51 | % |
| Interest      spread                    |   |                                  |    |   |   |   |   |   |   |   | 2.94 | % |   |   |   |   |   |   |   |   |   |   | 2.76 | % |

----

|                                    |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
|-----------------------------------------|--------|--------------------------------------|---------|--------|------------|----------|--------|---------|--------|--------|---------|--------|--------------|---------|---------|--------|----------|--------|--------|--------|--------|--------|--------|--------|
|                                    |   | Nine months ended      September 30, |    |
|                                    |   |  2008                           |    |   |  2007 |     |
|                                    |   |                                 |    |   |       | Interest |   |    |   |   |    |   |         |    |    |   | Interest |   |   |   |   |   |
|                                    |   | Average                              |    |   | Income/    |     |   | Average |   |   | Average |   |         | Income/ |    |   | Average  |   |
|                                    |   | Balance                              |    |   | Expense    |     |   | Rate    |   |   | Balance |   |         | Expense |    |   | Rate     |   |
|                                    |   | (dollars      in thousands)          |    |
| Interest      earning assets:           |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
| Loans                                   |   | $                                    | 761,506 |   |       | $        | 39,782 |    |   |   | 6.97    | %      |         | $       | 574,823 |   |     | $      | 33,887 |   |   |   | 7.86   | %      |
| Federal      funds sold and             |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
|   other      cash equivalents |   |                                 | 14,494  |   |       |     | 318    |    |   |   | 2.93    | %      |         |    | 48,603  |   |     |   | 1,890  |   |   |   | 5.18   | %      |
| Investments                             |   |                                 | 63,537  |   |       | 2,195    |   |    | 4.61   | %      |    |   |  67,391 |    |    | 2,080  |     |   | 4.12   | %      |
| Total      interest                     |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
|   earning      assets         |   |                                 | 839,537 |   |       | 42,295   |   |    | 6.72   | %      |    |   | 690,817      |    |    | 37,857 |     |   | 7.31   | %      |
|                                    |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
| Cash      and due from banks            |   |                                 | 5,651   |   |       |     |   |    |   |   |    |   |         |    | 4,206   |   |     |   |   |   |   |   |   |   |
| Premises      and equipment, net        |   |                                 | 7,639   |   |       |     |   |    |   |   |    |   |         |    | 5,877   |   |     |   |   |   |   |   |   |   |
| Allowance      for loan losses          |   |                                 | (6,847  | )      |       |     |   |    |   |   |    |   |         |    | (5,618  | )      |     |   |   |   |   |   |   |   |
| Other      assets                       |   |                                 | 29,100  |   |       |     |   |    |   |   |    |   |         |    | 9,922   |   |     |   |   |   |   |   |   |   |
| Total      Assets                       |   | $                                    | 875,080 |   |       |     |   |    |   |   |    |   |         | $       | 705,204 |   |     |   |   |   |   |   |   |   |
|                                    |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
| Interest      bearing liabilities:      |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
| Deposits                                |   | $                                    | 677,284 |   |       | $        | 20,020 |    |   |   | 3.94    | %      |         | $       | 568,845 |   |     | $      | 19,435 |   |   |   | 4.56   | %      |
| FHLB      advances                      |   |                                 | 56,202  |   |       |     | 1,265  |    |   |   | 3.00    | %      |         |    | 4,509   |   |     |   | 167    |   |   |   | 4.94   | %      |
| Subordinated      debt                  |   |                                 | 8,248   |   |       |     | 402    |    |   |   | 6.50    | %      |         |    | 8,248   |   |     |   | 519    |   |   |   | 8.39   | %      |
| Other      borrowings                   |   |                                 | 7,005   |   |       | 232      |   |    | 4.42   | %      |    |   | 55           |    |    | 2      |     |   | 4.85   | %      |
| Total      interest                     |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
|   bearing      liabilities    |   |                                 | 748,739 |   |       | 21,919   |   |    | 3.90   | %      |    |   | 581,657      |    |    | 20,123 |     |   | 4.61   | %      |
|                                    |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
| Demand      deposits                    |   |                                 | 54,526  |   |       |     |   |    |   |   |    |   |         |    | 52,751  |   |     |   |   |   |   |   |   |   |
| Accrued      expenses and               |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
|   other      liabilities      |   |                                 | 4,534   |   |       |     |   |    |   |   |    |   |         |    | 5,403   |   |     |   |   |   |   |   |   |   |
| Shareholders'      equity               |   |                                 | 67,281  |   |       |     |   |    |   |   |    |   |         |    | 65,393  |   |     |   |   |   |   |   |   |   |
| Total      liabilities and equity       |   | $                                    | 875,080 |   |       |     |   |    |   |   |    |   |         | $       | 705,204 |   |     |   |   |   |   |   |   |   |
|                                    |   |                                 |    |   |       |     |   |    |   |   |    |   |         |    |    |   |     |   |   |   |   |   |   |   |
| Net      interest income                |   |                                 |    |   |       | $        | 20,376 |    |   |   |    |   |         |    |    |   |     | $      | 17,734 |   |   |   |   |   |
| Interest      margin                    |   |                                 |    |   |       |     |   |    |   |   | 3.24    | %      |         |    |    |   |     |   |   |   |   |   | 3.42   | %      |
| Interest      spread                    |   |                                 |    |   |       |     |   |    |   |   | 2.82    | %      |         |    |    |   |     |   |   |   |   |   | 2.70   | %      |

----

|                                    | Three months ended      September 30,                                                       |                                                                                        | Nine months ended      September 30,                                             |
|-----------------------------------------|---------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------|
|                                    | 2008 vs      2007                                                                           |                                                                                        | 2008 vs      2007                                                                |
|                                    | Increase      (decrease) in Interest                                                        |                                                                                        | Increase      (decrease) in Interest                                             |
|                                    | Income/Expense                                                                              |                                                                                        | Income/Expense                                                                   |
|                                    | Due      to change in:                                                                      |                                                                                        | Due      to change in:                                                           |
|                                    | Volume                                                                                      | Rate                                                                                        | Total                                                                            |   | Volume | Rate | Total |
|                                    | (dollars      in thousands)                                                                 |                                                                                        | (dollars      in thousands)                                                      |
| Interest      earning assets:           |                                                                                        |                                                                                        |                                                                             |   |   |   |   |
| Loans                                   |  $      2,985                                            |  $    (2,580)                                                      |  $        405                       |   |  $       10,061 |  $       (4,166) |  $         5,895 |
| Federal      funds sold and             |                                                                                        |                                                                                        |                                                                             |   |   |   |   |
|   other      cash equivalents |          (162)                                 |          (141)                                 |          (303)                      |   |               (971) |              (601) |               (1,572) |
| Investments                             |              (7)           |              80            |              73 |   |           (114) |              229 |           115 |
| Total      interest                     |                                                                                        |                                                                                        |                                                                             |   |   |   |   |
|   earning      assets         |         2,816                                       |        (2,641)                                           |            175            |   |             8,976 |           (4,538) |             4,438 |
|                                    |                                                                                        |                                                                                        |                                                                             |   |   |   |   |
| Interest      bearing liabilities:      |                                                                                        |                                                                                        |                                                                             |   |   |   |   |
| Deposits                                |  $        829                                  |  $    (2,087)                                                      |  $    (1,258)                                           |   |  $         3,429 |  $       (2,844) |  $           585 |
| FHLB      advances                      |            567                       |            (30)                      |            537            |   |             1,189 |               (91) |             1,098 |
| Subordinated      debt                  |                - |            (51)                      |            (51)           |   |                   - |              (117) |              (117) |
| Other      borrowings                   |              76            |                - |              76 |   |               230 |                   - |               230 |
| Total      interest                     |                                                                                        |                                                                                        |                                                                             |   |   |   |   |
|   bearing      liabilities    |         1,472                                       |        (2,168)                                           |          (696)                      |   |             4,848 |           (3,052) |             1,796 |
|                                    |                                                                                        |                                                                                        |                                                                             |   |   |   |   |
| Net      interest income                |  $      1,344                                            |  $       (473)                                      |  $        871                       |   |  $         4,128 |  $       (1,486) |  $         2,642 |

----

----

----

----

|   |                           | September      30, 2008 |   | December      31, 2007 |   |
|--------|--------------------------------|-------------------------|--------|------------------------|--------|
|   | Total      Risk-based Capital  | 11.13%                  |   | 12.17%                 |   |
|   | Tier      1 Risk-based Capital | 9.88%                   |   | 11.30%                 |   |
|   | Leverage      Capital          | 8.05%                   |   | 9.42%                  |   |

|   |                           |                    |   |                   |   |
|--------|--------------------------------|-------------------------|--------|------------------------|--------|
|   |                           | September      30, 2008 |   | December      31, 2007 |   |
|   | Total      Risk-based Capital  | 11.06%                  |   | 12.03%                 |   |
|   | Tier      1 Risk-based Capital | 9.81%                   |   | 11.15%                 |   |
|   | Leverage      Capital          | 7.99%                   |   | 9.30%                  |   |

----

----

----

|                      | Basis  | Interest      Rate   |           September 30, |            December 31, |
|---------------------------|--------|----------------------|---------------------------------------------|--------------------------------------------------|
|                      | Points | Risk      Guidelines |           2008          |           2007               |
|                      |   |                 |                                        |                                             |
| GAP      percentage total |   | +/-      15%         | -1.06%                                      | -8.33%                                           |
| Net      interest income  | 200    | +/-      15%         | 0.87%                                       | -1.05%                                           |
|                      | -200   | +/-      15%         | -1.79%                                      | -0.59%                                           |
| Net      portfolio value  | 200    | +/-      25%         | -14.452%                                    | -12.60%                                          |
|                      | -200   | +/-      25%         | 2.46%                                       | 7.35%                                            |

----

| Net      Interest Income and Economic Value |       |
|---------------------------------------------|------------|
| Summary      Performance                    |       |
|                                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| September      30, 2008                     |       |
|                                        |       |   | Net      Interest Income |   | Net      Portfolio Value |   |
| Projected      Interest                     |       |   | Estimated |   |   | $      Change |   |   | %      Change |   |   | Estimated |   |   | $      Change |   |   | %      Change |   |
| Rate      Scenario                          |       |   | Value |   |   | from      Base |   |   | from      Base |   |   | Value |   |   | from      Base |   |   | from      Base |   |
|                                        | +      200 |   |   |   | 34,170 |   |   |   | 296 |   |   |   | 0.87 | % |   |   | 58,833 |   |   |   | (9,996 | ) |   |   | -14.52 | % |
|                                        | +      100 |   |   |   | 33,916 |   |   |   | 42 |   |   |   | 0.12 | % |   |   | 64,398 |   |   |   | (4,431 | ) |   |   | -6.44 | % |
| BASE                                        |       |   |   | 33,874 |   |   |   |   |   |   |   |   |   |   |   | 68,829 |   |   |   |   |   |   |   |   |   |
|                                        | -      100 |   |   |   | 33,780 |   |   |   | -94 |   |   |   | -0.28 | % |   |   | 70,348 |   |   |   | 1,519 |   |   |   | 2.21 | % |
|                                        | -      200 |   |   |   | 33,266 |   |   |   | -608 |   |   |   | -1.79 | % |   |   | 70,522 |   |   |   | 1,693 |   |   |   | 2.46 | % |
|                                        |       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December      31, 2007                      |       |
|                                        |       |   |   | Net      Interest Income |   | Net      Portfolio Value |   |
| Projected      Interest                     |       |   | Estimated |   |   | $      Change |   |   | %      Change |   |   | Estimated |   |   | $      Change |   |   | %      Change |   |
| Rate      Scenario                          |       |   | Value |   |   | from      Base |   |   | from      Base |   |   | Value |   |   | from      Base |   |   | from      Base |   |
|                                        | +      200 |   |   |   | 24,969 |   |   |   | (265 | ) |   |   | -1.05 | % |   |   | 69,103 |   |   |   | (9,966 | ) |   |   | -12.60 | % |
|                                        | +      100 |   |   |   | 25,138 |   |   |   | (96 | ) |   |   | -0.38 | % |   |   | 73,971 |   |   |   | (5,098 | ) |   |   | -6.45 | % |
| BASE                                        |       |   |   | 25,234 |   |   |   |   |   |   |   |   |   |   |   | 79,069 |   |   |   |   |   |   |   |   |   |
|                                        | -      100 |   |   |   | 25,316 |   |   |   | 82 |   |   |   | 0.32 | % |   |   | 83,213 |   |   |   | 4,144 |   |   |   | 5.24 | % |
|                                        | -      200 |   |   |   | 25,084 |   |   |   | (150 | ) |   |   | -0.59 | % |   |   | 84,881 |   |   |   | 5,812 |   |   |   | 7.35 | % |

----

----

| o   | Pay      5% dividends on the Treasury's preferred stock for the first five years,      and then 9% dividends thereafter; |
|---------------|--------------------------------------------------------------------------------------------------------------------------|

| o   | Cannot      increase common stock dividends for three years while Treasury is an      investor; |
|---------------|-------------------------------------------------------------------------------------------------|

| o   | Cannot      redeem the Treasury preferred stock for three years unless the      participating bank raises high-quality private  capital; |
|---------------|------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Must      receive Treasury's consent to buy back their own  stock; |
|---------------|--------------------------------------------------------------------|

| o   | Treasury      receives warrants entitling Treasury to buy participating bank's common      stock equal to 15% of Treasury's total investment in the participating      bank, and |
|---------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| o   | Participating      bank executives must agree to certain compensation restrictions, and      restrictions on the amount of executive compensation which is tax      deductible. |
|---------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

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

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

----

|   |      |                                                                                                                                                                                                                                                                                                                             |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | No.       | Description                                                                                                                                                                                                                                                                                                                      |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 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)).         |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 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 FileNo. 000 - 295999)).                                                                                            |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 10(a)(13) | Change      of Control Agreement, dated as of January 1, 2007 between Martin G. Noble      and Patriot National Bank (incorporated by reference to Exhibit 10(a)(13)      to Bancorp’s Annual Report on Form 10-K for the year ended      December  31, 2006 (Commission File No.      000-29599)).    |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 10(a)(14) | Change      of Control Agreement, dated as of January 1, 2007 among Philip W. Wolford,      Patriot National Bank and Bancorp (incorporated by reference to Exhibit      10(a)(14) to Bancorp’s Annual Report on Form 10-K for the year ended      December 31, 2006 (Commission File No.      000-29599)). |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 10(c)     | 1999      Stock Option Plan of the Bank (incorporated by reference to Exhibit 10(c)      to Bancorp’s Current Report on Form 8-K dated December 1, 1999 (Commission      File No. 000-29599)).                                                                                                                             |

----

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

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

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