----

| For      the Quarter Ended March 31, 2009 | Commission      file number 000-29599 |
|-------------------------------------------|---------------------------------------|

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

----

|          |                                                            | Page           |
|---------------|-----------------------------------------------------------------|----------------|
|          |                                                            |           |
| Part      I   | FINANCIAL      INFORMATION                                      |           |
|          |                                                            |           |
| Item      1.  | Consolidated      Financial Statements                          | 3              |
|          |                                                            |           |
| Item      2.  | Management’s      Discussion and Analysis of              |           |
|          | Financial      Condition and Results of Operations              | 20             |
|          |                                                            |           |
| Item      3.  | Quantitative      and Qualitative Disclosures about Market Risk |   35 |
|          |                                                            |           |
| Item      4.  | Controls      and Procedures                                    | 38             |
|          |                                                            |           |
|          |                                                            |           |
| Part      II  | OTHER      INFORMATION                                          |           |
|          |                                                            |           |
| Item      1A. | Risk      Factors                                               | 38             |
|          |                                                            |           |
| Item      6.  | Exhibits                                                        | 39             |
|          |                                                            |           |

----

|                                                                                                                                 | March      31, 2009                                                                                                                                                                   |   | December      31, 2008                                                                                                                                                                |
|-------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                      | (Unaudited)                                                                                                                                                                           |   |                                                                                                                                                                                  |
| ASSETS                                                                                                                                    |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| Cash      and due from banks:                                                                                                             |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|    Noninterest      bearing deposits and cash                                                                              |  $             66,603,104                                                                                       |   |  $               3,045,708                                                                            |
|    Interest      bearing deposits                                                                                          |                        70,848                                      |   |                   1,240,525                                                                 |
| Federal      funds sold                                                                                                                   |                 25,000,000                                                                            |   |                 20,000,000                                                                            |
| Short      term investments                                                                                                               |                        85,033                                      |   |                      316,518                                                 |
|      Cash      and cash equivalents                                                                              |                 91,758,985                                                                            |   |                 24,602,751                                                                            |
|                                                                                                                                      |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| Available      for sale securities (at fair value)                                                                                        |                 25,344,658                                                                            |   |                 51,979,677                                                                            |
| Federal      Reserve Bank stock                                                                                                           |                   1,913,200                                                                 |   |                   1,913,200                                                                 |
| Federal      Home Loan Bank stock                                                                                                         |                   4,508,300                                                                 |   |                   4,508,300                                                                 |
| Loans      receivable (net of allowance for loan losses:  2009      $16,630,905;                                                |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|      2008      $16,247,070)                                                                                      |               785,103,179                                                                                       |   |               788,568,687                                                                                       |
| Accrued      interest and dividends receivable                                                                                            |                   4,172,372                                                                 |   |                   4,556,755                                                                 |
| Premises      and equipment, net                                                                                                          |                   7,646,145                                                                 |   |                   7,948,501                                                                 |
| Deferred      tax asset, net                                                                                                              |                   9,543,358                                                                 |   |                   8,680,075                                                                 |
| Intangible      assets                                                                                                                    |                        81,699                                      |   |                        85,896                                      |
| Cash      surrender value of life insurance                                                                                               |                 19,324,118                                                                            |   |                 19,135,105                                                                            |
| Other      assets                                                                                                                         |                 21,063,293                                                                            |   |                   1,380,031                                                                 |
|           Total      assets                                                             |  $       970,459,307                                                                                                                          |   |  $       913,358,978                                                                                                                          |
|                                                                                                                                      |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| LIABILITIES      AND SHAREHOLDERS' EQUITY                                                                                                 |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| Liabilities                                                                                                                               |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|      Deposits:                                                                                                   |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|           Noninterest      bearing deposits                                             |  $             47,259,798                                                                                       |   |  $             50,194,400                                                                                       |
|           Interest      bearing deposits                                                |               796,685,335                                                                                       |   |               734,626,951                                                                                       |
|                Total      deposits                             |            843,945,133                                                                                                         |   |            784,821,351                                                                                                         |
|      Repurchase      agreements                                                                                  |                   7,000,000                                                                 |   |                   7,000,000                                                                 |
|      Federal      Home Loan Bank borrowings                                                                      |                 50,000,000                                                                            |   |                 50,000,000                                                                            |
|      Junior      subordinated debt owed to unconsolidated trust                                                  |                   8,248,000                                                                 |   |                   8,248,000                                                                 |
|      Accrued      expenses and other liabilities                                                                 |                   3,654,473                                                                 |   |                   4,515,483                                                                 |
|                Total      liabilities                          |            912,847,606                                                                                                         |   |            854,584,834                                                                                                         |
|                                                                                                                                      |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
| Shareholders'      equity                                                                                                                 |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|      Preferred      stock:  1,000,000 shares authorized; no shares      issued                         |                               - |   |                               - |
|      Common      stock, $2 par value: 60,000,000 shares authorized; shares                                       |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|      issued      4,755,114; shares outstanding 4,743,409.                                                        |                   9,510,228                                                                 |   |                   9,510,228                                                                 |
|      Additional      paid in capital                                                                             |                 49,634,337                                                                            |   |                 49,634,337                                                                            |
|      Accumulated      deficit                                                                                    |                 (1,216,847)                                                                           |   |                    (119,886)                                                           |
|      Less      Treasury stock at cost:  11,705 shares                                                  |                    (160,025)                                                           |   |                    (160,025)                                                           |
|      Accumulated      other comprehensive loss - net unrealized loss                                             |                                                                                                                                                                                  |   |                                                                                                                                                                                  |
|           on      available-for-sale securities, net of taxes                           |                    (155,992)                                                           |   |                      (90,510)                                                |
|                Total      shareholders' equity                 |              57,611,701                                                                                              |   |              58,774,144                                                                                              |
|                Total      liabilities and shareholders' equity |  $       970,459,307                                                                                                                          |   |  $       913,358,978                                                                                                                          |

----

|                                      |                                                                                                    |                                                                                                                          | Three      Months Ended March 31,                                                                                                                                         |
|-------------------------------------------|---------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                      |                                                                                                    |                                                                                                                          | 2009                                                                                                                                                                      | 2008 |
| Interest      and Dividend Income         |                                                                                                    |                                                                                                                          |
|                                      | Interest      and fees on loans                                                                         |  $        11,774,941                                                             |  $        13,322,161                                                                                                         |
|                                      | Interest      and dividends on investment securities                                                    |                 571,371                       |                 922,104                                                                   |
|                                      | Interest      on federal funds sold                                                                     |                   12,922            |                   54,411                                                        |
|                                      |                                                                                                    | Total      interest and dividend income                                                                                       |          12,359,234                                                                                                          |          14,298,676 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
| Interest      Expense                     |                                                                                                    |                                                                                                                          |
|                                      | Interest      on deposits                                                                               |              6,242,773                                       |              7,609,656                                                                                   |
|                                      | Interest      on Federal Home Loan Bank borrowings                                                      |                 418,876                       |                 301,270                                                                   |
|                                      | Interest      on subordinated debt                                                                      |                   93,220            |                 160,091                                                                   |
|                                      | Interest      on other borrowings                                                                       |                   76,081            |                   79,649                                                        |
|                                      |                                                                                                    | Total      interest expense                                                                                                   |            6,830,950                                                                                               |            8,150,666 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
|                                      |                                                                                                    | Net      interest income                                                                                                      |            5,528,284                                                                                               |            6,148,010 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
| Provision      for Loan Losses            |              1,600,000                 |                 477,000                       |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
|                                      |                                                                                                    | Net      interest income after                                                                                                |                                                                                                                                                                      |   |
|                                      |                                                                                                    |      provision      for loan losses                                                                  |            3,928,284                                                                                               |            5,671,010 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
| Noninterest      Income                   |                                                                                                    |                                                                                                                          |
|                                      | Mortgage      brokerage referral fees                                                                   |                     2,495 |                   54,114                                                        |
|                                      | Loan      origination & processing fees                                                             |                   69,202            |                 106,024                                                                   |
|                                      | Fees      and service charges                                                                           |                 245,605                       |                 250,856                                                                   |
|                                      | Gain      on sale of investment securities                                                              |                 434,333                       |                             - |
|                                      | Earnings      on cash surrender value of life insurance                                                 |                 189,013                       |                 231,242                                                                   |
|                                      | Other      income                                                                                       |                   82,006            |                 111,503                                                                   |
|                                      |                                                                                                    | Total      noninterest income                                                                                                 |            1,022,654                                                                                               |               753,739 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
| Noninterest      Expenses                 |                                                                                                    |                                                                                                                          |
|                                      | Salaries      and benefits                                                                              |              2,991,181                                       |              3,311,051                                                                                   |
|                                      | Occupancy      and equipment expense, net                                                               |              1,405,223                                       |              1,296,919                                                                                   |
|                                      | Data      processing and other outside services                                                         |                 476,472                       |                 466,349                                                                   |
|                                      | Professional      services                                                                              |                 562,336                       |                 223,376                                                                   |
|                                      | Advertising      and promotional expenses                                                               |                   57,773            |                 186,995                                                                   |
|                                      | Loan      administration and processing expenses                                                        |                   97,729            |                   59,519                                                        |
|                                      | Regulatory      assessments                                                                             |                 279,374                       |                 169,410                                                                   |
|                                      | Other      noninterest expenses                                                                         |                 435,811                       |                 508,463                                                                   |
|                                      |                                                                                                    | Total      noninterest expenses                                                                                               |            6,305,899                                                                                               |            6,222,082 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
|                                      |                                                                                                    | (Loss)      income before income taxes                                                                                        |          (1,354,961)                                                                                                         |               202,667 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
| Benefit      (Provision) for Income Taxes |                 258,000 |                  (52,000)                |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
|                                      |                                                                                                    | Net      (loss) income                                                                                                        |  $   (1,096,961)                                                                                                                                      |  $         150,667 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
|                                      |                                                                                                    | Basic      (loss) income per share                                                                                            |  $             (0.23)                                                                               |  $              0.030 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
|                                      |                                                                                                    | Diluted      (loss) income per share                                                                                          |  $             (0.23)                                                                               |  $              0.030 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |
|                                      |                                                                                                    | Dividends      per share                                                                                                      |  $                      -                              |  $              0.045 |
|                                      |                                                                                                    |                                                                                                                          |                                                                                                                                                                      |   |

----

|   |                                                                         | Three      Months Ended                                                                                        |                                                                                                    |
|--------|------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------|
|   |                                                                         | March      31,                                                                                                 |                                                                                                    |
|   |                                                                         | 2009                                                                                                           | 2008                                                                                                    |   |
|   |                                                                         |                                                                                                           |                                                                                                    |   |
|   | Net      (loss) income                                                       |  $       (1,096,961)                                                   |  $         150,667                                    |   |
|   |                                                                         |                                                                                                           |                                                                                                    |   |
|   | Unrealized      holding (losses) gains on securities:                        |                                                                                                           |                                                                                                    |   |
|   |      Unrealized      holding (losses) gains arising |                                                                                                           |                                                                                                    |   |
|   |      during      the period, net of taxes           |                  (65,482) |                 263,538 |   |
|   |                                                                         |                                                                                                           |                                                                                                    |   |
|   | Comprehensive      (loss) income                                             |  $    (1,162,443)                                                                     |  $      414,205                                                      |   |

----

|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |  Retained                                                                                                                  |                                                                                                                            |  Accumulated                                                                                                                                       |                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------|
|                                                                                                                      |                                                                                                                |                                                                                                                            |  Additional                                                                                                                                  |  Earnings                                                                                                                  |                                                                                                                            |  Other                                                                                                                                             |                                                                                             |
|                                                                                                                      |  Number      of                                                                                                |  Common                                                                                                                    |  Paid-In                                                                                                                                     |  (Accumulated                                                                                                              |  Treasury                                                                                                                  |  Comprehensive                                                                                                                                     |                                                                                             |
|                                                                                                                      |  Shares                                                                                                        |  Stock                                                                                                                     |  Capital                                                                                                                                     |  Deficit)                                                                                                                  |  Stock                                                                                                                     |  Income      (Loss)                                                                                                                                |  Total                                                                                      |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Three      months ended March 31, 2008                                                                                    |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Balance      at December 31, 2007                                                                                         |     4,746,844                                                                                   |  $    9,493,688                                                                                        |  $    49,549,119                                                                                                         |  $   7,846,060                                                                                              |  $                  -            |  $           (53,500)                                                                       |  $     66,835,367                                                  |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Comprehensive      income                                                                                                 |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |
|   Net      income                                                                                               |                    - |                      - |                         - |          150,667                                                                   |                      - |                          - |              150,667            |
|   Unrealized      holding gain on available for                                                                 |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |
|      sale      securities, net of taxes                                                          |                    - |                      - |                         - |                      - |                                                                                                                            |               263,538                                                             |              263,538            |
|                Total      comprehensive income |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |              414,205                                                                   |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Issuance      of common stock                                                                                             |            5,000                                             |             10,000                                                  |               40,550                                                        |                      - |                      - |                          - |                50,550 |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Dividends                                                                                                                 |                    - |                      - |                         - |         (213,608)                                                                       |                                                                                                                            |                          - |            (213,608)                      |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Balance,      March 31, 2008                                                                                              |     4,751,844                                                                                   |  $    9,503,688                                                                                        |  $    49,589,669                                                                                                         |  $   7,783,119                                                                                              |  $                  -            |  $           210,038                                                                        |  $     67,086,514                                                  |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Three      months ended March 31, 2009                                                                                    |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Balance      at December 31, 2008                                                                                         |     4,743,409                                                                                   |  $    9,510,228                                                                                        |  $    49,634,337                                                                                                         |  $     (119,886)                                                                                  |  $     (160,025)                                                                                  |  $           (90,510)                                                                       |  $     58,774,144                                                  |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Comprehensive      loss                                                                                                   |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |
|   Net      loss                                                                                                 |                    - |                      - |                         - |      (1,096,961)                                                                                       |                      - |                          - |         (1,096,961)                                      |
|   Unrealized      holding loss on available for                                                                 |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |
|      sale      securities, net of taxes                                                          |                    - |                      - |                         - |                      - |                      - |               (65,482)                                                            |              (65,482)           |
|                Total      comprehensive loss   |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |         (1,162,443)                                                                                             |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
|                                                                                                                      |                                                                                                                |                                                                                                                            |                                                                                                                                              |                                                                                                                            |                                                                                                                            |                                                                                                                                                    |                                                                                             |
| Balance,      March 31, 2009                                                                                              |     4,743,409                                                                                   |  $    9,510,228                                                                                        |  $    49,634,337                                                                                                         |  $  (1,216,847)                                                                                                  |  $     (160,025)                                                                                  |  $         (155,992)                                                                                  |  $     57,611,701                                                  |

----

|                                       |                                                                                  | Three      Months Ended                                                                                                                     |
|--------------------------------------------|---------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                                       |                                                                                  | March      31,                                                                                                                              |
|                                       |                                                                                  | 2009                                                                                                                                        | 2008 |
|                                       |                                                                                  |                                                                                                                                        |   |
| Cash      Flows from Operating Activities: |                                                                                  |                                                                                                                                        |
|                                       | Net      (loss) income                                                                |  $      (1,096,961)                                                                                      |  $          150,667 |
|                                       | Adjustments      to reconcile net (loss) income to net cash                           |                                                                                                                                        |   |
|                                       | used      in operating activities:                                                    |                                                                                                                                        |   |
|                                       | Amortization      and accretion of investment premiums and discounts, net             |                 15,258                                      |                43,444 |
|                                       | Provision      for loan losses                                                        |            1,600,000                                                                 |              477,000 |
|                                       | Gain      on sale of investment securities                                            |             (434,333)                                                           |                        - |
|                                       | Amortization      of core deposit intangible                                          |                   4,197                           |                  4,422 |
|                                       | Earnings      on cash surrender value of life insurance                               |             (189,013)                                                           |             (231,242) |
|                                       | Depreciation      and amortization                                                    |               424,555                                                 |              386,311 |
|                                       | Loss      on disposal of bank premises and equipment                                  |                        - |                       46 |
|                                       | Deferred      Income Taxes                                                            |             (823,142)                                                           |                        - |
|                                       | Changes      in assets and liabilities:                                               |                                                                                                                                        |   |
|                                       |      (Decrease)      increase in deferred loan fees          |             (237,713)                                                           |                19,208 |
|                                       |      Decrease      (increase) in accrued interest receivable |               384,383                                                 |             (453,521) |
|                                       |      Decrease      (increase) in other assets                |               169,280                                                 |             (211,723) |
|                                       |      Decrease      in accrued expenses and other liabilities |             (647,556)                                                           |          (2,818,301) |
|                                       |      Net      cash used in operating activities              |           (831,045)                                                                       |       (2,633,689) |
|                                       |                                                                                  |                                                                                                                                        |   |
| Cash      Flows from Investing Activities: |                                                                                  |                                                                                                                                        |
|                                       | Purchases      of available for sale securities                                       |                        - |          (8,366,036) |
|                                       | Principal      repayments on available for sale securities                            |            1,095,929                                                                 |           3,206,305 |
|                                       | Proceeds      from redemptions of available for sale securities                       |            6,000,000                                                                 |         12,000,000 |
|                                       | Purchases      of Federal Reserve Bank Stock                                          |                        - |                 (1,500) |
|                                       | Purchases      of Federal Home Loan Bank Stock                                        |                        - |             (200,000) |
|                                       | Net      decrease (increase) in loans                                                 |            2,103,221                                                                 |        (69,259,453) |
|                                       | Purchase      of bank premises and equipment                                          |             (122,199)                                                           |             (557,264) |
|                                       |      Net      cash used in investing activities              |         9,076,951                                                                                   |     (63,177,948) |
|                                       |                                                                                  |                                                                                                                                        |   |
| Cash      Flows from Financing Activities: |                                                                                  |                                                                                                                                        |
|                                       | Net      increase in demand, savings and money market deposits                        |          45,868,465                                                                            |         12,857,202 |
|                                       | Net      increase in time certificates of deposits                                    |          13,255,317                                                                            |         80,332,529 |
|                                       | Net      repayments of FHLB borrowings                                                |                        - |        (12,500,000) |
|                                       | Proceeds      from issuance of common stock                                           |                        - |                50,550 |
|                                       | Dividends      paid on common stock                                                   |             (213,454)                                                           |             (213,608) |
|                                       |      Net      cash provided by financing activities          |       58,910,328                                                                                              |       80,526,673 |
|                                       |                                                                                  |                                                                                                                                        |   |
|                                       |      Net      increase in cash and cash equivalents          |       67,156,234                                                                                              |       14,715,036 |
|                                       |                                                                                  |                                                                                                                                        |   |
| Cash      and Cash Equivalents:            |                                                                                  |                                                                                                                                        |
|                                       | Beginning                                                                             |          24,602,751                                                                            |         14,011,914 |
|                                       |                                                                                  |                                                                                                                                        |   |
|                                       | Ending                                                                                |  $      91,758,985                                                                                       |  $     28,726,950 |

----

|                                                                         |                                                        | Three      Months Ended                                                                                                                      |
|------------------------------------------------------------------------------|-------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                         |                                                        | March      31,                                                                                                                               |
|                                                                         |                                                        | 2009                                                                                                                                         | 2008 |
|                                                                         |                                                        |                                                                                                                                         |   |
| Supplemental      Disclosures of Cash Flow Information                       |                                                        |                                                                                                                                         |
|                                                                         | Cash      paid for:                                         |                                                                                                                                         |   |
|                                                                         |      Interest                      |  $        6,950,959                                                                             |  $       8,102,629 |
|                                                                         |                                                        |                                                                                                                                         |   |
|                                                                         |      Income      taxes             |  $        1,234,080                                                                             |  $          352,599 |
|                                                                         |                                                        |                                                                                                                                         |   |
| Supplemental      disclosures of noncash investing and financing activities: |                                                        |                                                                                                                                         |
|                                                                         |                                                        |                                                                                                                                         |   |
|                                                                         | Unrealized      holding (loss) gain on available for sale   |                                                                                                                                         |   |
|                                                                         | securities      arising during the period                   |  $        (105,624)                                                                             |  $          425,061 |
|                                                                         |                                                        |                                                                                                                                         |   |
|                                                                         | Dividends      declared on common stock                     |  $                      - |  $          213,608 |
|                                                                         |                                                        |                                                                                                                                         |   |
|                                                                         | Proceeds      receivable from investment sales transactions |  $     19,852,542                                                                                              |  $                      - |
|                                                                         |                                                        |                                                                                                                                         |   |

----

|                                                     |                                                      | Gross                                                                                                                                       | Gross                                                                                                                                       |                                                      |
|----------------------------------------------------------|-----------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------|
|                                                     | Amortized                                                 | Unrealized                                                                                                                                  | Unrealized                                                                                                                                  | Fair                                                      |
|                                                     | Cost                                                      | Gains                                                                                                                                       | Losses                                                                                                                                      | Value                                                     |
| March      31, 2009:                                     |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |
|                                                     |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |
| U.      S. Government sponsored                          |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |
|    agency      obligations                |  $     5,000,000            |  $          60,938                                                                   |  $                    -            |  $     5,060,938            |
| U.      S. Government Agency and sponsored               |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |
|    agency      mortgage-backed securities |       17,716,227            |              43,643                                                        |           (169,494)                                                                       |       17,590,376            |
| Money      market preferred equity securities            |         2,880,037 |              39,807                                                        |           (226,500)                                                                       |         2,693,344 |
| Total      Available-for-Sale Securities                 |  $   25,596,264                       |  $        144,388                                                                              |  $       (395,994)                                                                                  |  $   25,344,658                       |
|                                                     |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |
| December      31, 2008:                                  |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |
|                                                     |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |
| U.      S. Government sponsored                          |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |
|    agency      obligations                |  $   10,000,000                       |  $        102,248                                                                              |  $                    -            |  $   10,102,248                       |
| U.      S. Government Agency and sponsored               |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |
|    agency      mortgage-backed securities |       38,246,799            |            231,766                                                                   |           (479,996)                                                                       |       37,998,569            |
| Money      market preferred equity securities            |         3,878,860 |                        - |                        - |         3,878,860 |
| Total      Available-for-Sale Securities                 |  $   52,125,659                       |  $        334,014                                                                              |  $       (479,996)                                                                                  |  $   51,979,677                       |
|                                                     |                                                      |                                                                                                                                        |                                                                                                                                        |                                                      |

----

|                                |   | Three      months ended                                                                                                                     |                                                                                                                                        |
|-------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------|
|                                |   |  March      31,                                                                                                                        |                                                                                                                                        |
| (Thousands      of dollars)         |   | 2009                                                                                                                                        | 2008                                                                                                                                        |   |
|                                |   |                                                                                                                                        |                                                                                                                                        |   |
| Balance      at beginning of period |   |  $   16,247,070                                                                                                         |  $     5,672,620                                                                                              |   |
| Provision      for loan losses      |   |         1,600,000                                                                                   |            477,000                                                                   |   |
| Charge-offs                         |   |        (1,216,165)                                                                                       |                        - |   |
| Recoveries                          |   |                        - |                        - |   |
| Balance      at end of period       |   |  $   16,630,905                                                                                                         |  $     6,149,620                                                                                              |   |
|                                |   |                                                                                                                                        |                                                                                                                                        |   |

----

|                                                       | March      31,                                                   |   | December      31,                                                |
|------------------------------------------------------------|------------------------------------------------------------------|--------|------------------------------------------------------------------|
|                                                       | 2009                                                             |   | 2008                                                             |
|                                                       |                                                             |   |                                                             |
| Impaired      loans receiveable for which there is a       |                                                             |   |                                                             |
|    related      allowance for credit losses |  $      37,212,777            |   |  $      42,535,777            |
|                                                       |                                                             |   |                                                             |
| Impaired      loans receiveable for which there is no      |                                                             |   |                                                             |
|    related      allowance for credit losses |  $      48,567,236            |   |  $      37,620,136            |
|                                                       |                                                             |   |                                                             |
| Allowance      for credit losses related to impaired loans |  $        4,186,585 |   |  $        4,211,954 |

----

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

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

----

|                                   | Three      Months Ended                                   |                                                                | Three      Months Ended                                   |
|----------------------------------------|-----------------------------------------------------------|---------------------------------------------------------------------|-----------------------------------------------------------|
|                                   | March      31, 2009                                       |                                                                | March      31, 2008                                       |
|                                   | Before      Tax                                           |                                                                | Net      of Tax                                           |   |  Before      Tax |   |  Net      of Tax |
|                                   | Amount                                                    | Tax      Effect                                                     | Amount                                                    |   |  Amount |  Tax      Effect |  Amount |
|                                   |                                                      |                                                                |                                                      |   |   |   |   |
| Unrealized      holding gains          |                                                      |                                                                |                                                      |   |   |   |   |
| arising      during the period         |  $       328,709  |  $     (124,905)                      |  $       203,804  |   |  $       425,061 |  $     (161,523) |  $       263,538 |
|                                   |                                                      |                                                                |                                                      |   |   |   |   |
| Reclassification      adjustment       |                                                      |                                                                |                                                      |   |   |   |   |
| for      gains recognized in income    |         (434,333) |           165,047 |         (269,286) |   |                     - |                     - |                     - |
|                                   |                                                      |                                                                |                                                      |   |   |   |   |
| Unrealized      holding (losses) gains |                                                      |                                                                |                                                      |   |   |   |
| on      available for sale securities, |                                                      |                                                                |                                                      |   |   |   |   |
| net      of taxes                      |  $     (105,624)            |  $         40,142 |  $       (65,482) |   |  $       425,061 |  $     (161,523) |  $       263,538 |

|   | Commitments      to extend credit:       |                                                                              |                                                                   |
|--------|------------------------------------------|-----------------------------------------------------------------------------------|------------------------------------------------------------------------|
|   |                                     | Future      loan commitments                                                      |  $         4,482,000 |   |
|   |                                     | Unused      lines of credit                                                       |           51,748,942 |   |
|   |                                     | Undisbursed      construction loans                                               |           58,888,123 |   |
|   | Financial      standby letters of credit |             1,481,600 |                                                                   |
|   |                                     |                                                                              |  $     116,600,665                       |   |

----

----

| 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.                                                                                                                                                                                                                                                                                                                                                                                                        |

----

|                               |  Quoted      Prices in                                                                                                                                                      | Significant                         | Significant                                                                                                                      |                                      |
|------------------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------|
|                               |  Active      Markets                                                                                                                                                        | Observable                          | Unobservable                                                                                                                     | Balance                                   |
|                               |  for      Identical Assets                                                                                                                                                  | Inputs                              | Inputs                                                                                                                           | as      of                                |
|                               | (Level      1)                                                                                                                                                                   | (Level      2)                      | (Level      3)                                                                                                                   | March      31, 2009                       |
|                               |                                                                                                                                                                             |                                |                                                                                                                             |                                      |
| Securities      available for sale |  $                            - |  $   25,344,658 |  $                    - |  $    25,344,658 |

----

|                    |  Quoted      Prices in                                                                                                                                                | Significant                                                                                                                      | Significant                         |                                      |                                       |
|-------------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------------|-------------------------------------|-------------------------------------------|--------------------------------------------|
|                    |  Active      Markets                                                                                                                                                  | Observable                                                                                                                       | Unobservable                        | Balance                                   | Total                                      |
|                    |  for      Identical Assets                                                                                                                                            | Inputs                                                                                                                           | Inputs                              | as      of                                | Gains                                      |
|                    | (Level      1)                                                                                                                                                             | (Level      2)                                                                                                                   | (Level      3)                      | March      31, 2009                       | (Losses)                                   |
|                    |                                                                                                                                                                       |                                                                                                                             |                                |                                      |                                       |
| Impaired      Loans (1) |  $                           - |  $                    - |  $   67,439,735 |  $    67,439,735 |  $    (1,281,750) |

----

----

----

----

----

|                                                     |   | March      31,                                                                                            |   | December      31,                                                                                         |
|----------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|--------|-----------------------------------------------------------------------------------------------------------|
|                                                     |   | 2009                                                                                                      |   | 2008                                                                                                      |
|                                                     |   |                                                                                                      |   |                                                                                                      |
| U.      S. Government sponsored                          |   |                                                                                                      |   |                                                                                                      |
|   agency      obligations                      |   |  $         5,060,938                                    |   |  $       10,102,248                                               |
| U.      S. Government Agency and sponsored               |   |                                                                                                      |   |                                                                                                      |
|    agency      mortgage-backed securities |   |               17,590,376            |   |               37,998,569            |
| Money      market preferred                              |   |                                                                                                      |   |                                                                                                      |
|   equity      securities                       |   |                 2,693,344 |   |                 3,878,860 |
| Total      Available for Sale Securities                 |   |  $       25,344,658                                               |   |  $       51,979,677                                               |

----

|   |                                             |   | March      31,                                                                                                                        | December      31,                                                                                                                     |   |
|--------|--------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------------------------------|--------|
|   |                                             |   | 2009                                                                                                                                  | 2008                                                                                                                                  |   |
|   | Real      Estate                                 |   |                                                                                                                                  |                                                                                                                                  |   |
|   |    Commercial                     |   |  $           259,304,592                                                  |  $           262,570,339                                                  |   |
|   |    Residential                    |   |               186,919,664                                       |               170,449,780                                       |   |
|   |    Construction                   |   |               256,716,364                                       |               257,117,081                                       |   |
|   |    Construction      to permanent |   |                 17,923,042                            |                 35,625,992                            |   |
|   | Commercial                                       |   |                 34,668,561                            |                 33,860,527                            |   |
|   | Consumer      home equity                        |   |                 45,746,007                            |                 45,022,128                            |   |
|   | Consumer      installment                        |   |                   1,046,503                 |                      993,707 |   |
|   | Total      Loans                                 |   |               802,324,733                                       |               805,639,554                                       |   |
|   | Premiums      on purchased loans                 |   |                      153,507 |                      158,072 |   |
|   | Net      deferred loan fees                      |   |                     (744,156)     |                     (981,869)     |   |
|   | Allowance      for loan losses                   |   |                (16,630,905)                                |                (16,247,070)                                |   |
|   | Loans      receivable, net                       |   |  $          785,103,179                                                        |  $          788,568,687                                                        |   |

----

|   |                                              | March      31,                                                                                                     | December      31,                                                                                                                  |   |
|--------|---------------------------------------------------|--------------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------------------------------|--------|
|   | (Thousands      of dollars)                       | 2009                                                                                                               | 2008                                                                                                                               |   |
|   |                                              |                                                                                                               |                                                                                                                               |   |
|   | Loans      past due over 90 days                  |  $                 1,551 |  $                    337 |   |
|   |      still      accruing |                                                                                                               |                                                                                                                               |   |
|   | Non      accruing loans                           |                   85,780 |                   80,156                 |   |
|   |      Total               |  $               87,331            |  $               80,493                            |   |
|   | %      of Total Loans                             | 10.89%                                                                                                             | 10.21%                                                                                                                             |   |
|   | %      of Total Assets                            | 9.00%                                                                                                              | 8.81%                                                                                                                              |   |

----

----

----

|                                                             | Three      months ended                                           |                                                                                                          |
|------------------------------------------------------------------|-------------------------------------------------------------------|---------------------------------------------------------------------------------------------------------------|
|                                                             |  March      31,                                              |                                                                                                          |
| (Thousands      of dollars)                                      | 2009                                                              | 2008                                                                                                          |   |
|                                                             |                                                              |                                                                                                          |   |
| Balance      at beginning of period                              |  $     16,247                       |  $       5,673                                                        |   |
| Charge-offs                                                      |          (1,216)     |                   - |   |
| Provision      charged to operations                             |           1,600 |              477                             |   |
| Balance      at end of period                                    |  $     16,631                       |  $       6,150                                                        |   |
|                                                             |                                                              |                                                                                                          |   |
| Ratio      of net charge-offs during                             |                                                              |                                                                                                          |   |
|      the      period to average loans   |                                                              |                                                                                                          |   |
|      outstanding      during the period | 0.15%                                                             | 0.00%                                                                                                         |   |

|                                                                     | March      31,                                                                                             | December      31,                                                                                          |
|--------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|------------------------------------------------------------------------------------------------------------|
|                                                                     | 2009                                                                                                       | 2008                                                                                                       |
|                                                                     |                                                                                                       |                                                                                                       |
| Non-interest      bearing                                                |  $         47,259,798                                    |  $         50,194,400                                    |
|                                                                     |                                                                                                       |                                                                                                       |
| Interest      bearing                                                    |                                                                                                       |                                                                                                       |
|      NOW                                        |                 24,890,349 |                 19,544,552 |
|      Savings                                    |                 50,125,992 |                 46,040,086 |
|      Money      market                          |               107,613,153            |                 68,241,790 |
|      Time      certificates, less than $100,000 |               366,221,368            |               405,298,436            |
|      Time      certificates, $100,000 or more   |               247,834,473            |               195,502,087            |
| Total      interest bearing                                              |               796,685,335            |               734,626,951            |
| Total      Deposits                                                      |  $       843,945,133                                               |  $       784,821,351                                               |

----

----

|                                    | Three months ended March  31,                               |
|-----------------------------------------|-------------------------------------------------------------|
|                                    |        2009                                            |   |        2008 |
|                                    |                                                        | Interest |   |   |   | Interest |   |
|                                    | Average                                                     | Income/ | Average |   | Average | Income/ | Average |
|                                    | Balance                                                     | Expense | Rate |   | Balance | Expense | Rate |
|                                    | (dollars      in thousands)                                 |
| Interest      earning assets:           |                                                        |   |   |   |   |   |   |
| Loans                                   |  $   809,331                            |  $    11,775 | 5.82% |   |  $   722,748 |  $   13,322 | 7.37% |
| Federal      funds sold and             |                                                        |   |   |   |   |   |   |
|   other      cash equivalents |        36,600            |              15 | 0.16% |   |        23,269 |           211 | 3.63% |
| Investments                             |        54,797            |            569 | 4.15% |   |        65,904 |           766 | 4.65% |
| Total      interest                     |                                                        |   |   |   |   |   |   |
|   earning      assets         |      900,728                       |        12,359 | 5.49% |   |      811,921 |       14,299 | 7.04% |
|                                    |                                                        |   |   |   |   |   |   |
| Cash      and due from banks            |        17,375            |   |   |   |          5,963 |   |   |
| Premises      and equipment, net        |          7,629 |   |   |   |          7,647 |   |   |
| Allowance      for loan losses          |       (16,651)                |   |   |   |        (5,837) |   |   |
| Other      assets                       |        30,567            |   |   |   |        28,794 |   |   |
| Total      Assets                       |  $   939,648                            |   |   |   |  $   848,488 |   |   |
|                                    |                                                        |   |   |   |   |   |   |
| Interest      bearing liabilities:      |                                                        |   |   |   |   |   |   |
| Deposits                                |  $   763,619                            |  $      6,243 | 3.27% |   |  $   674,273 |  $     7,610 | 4.51% |
| FHLB      advances                      |        50,000            |            419 | 3.35% |   |        34,670 |           301 | 3.47% |
| Subordinated      debt                  |          8,248 |              93 | 4.51% |   |          8,248 |           160 | 7.76% |
| Other      borrowings                   |          7,000 |              76 | 4.34% |   |          7,017 |             80 | 4.56% |
| Total      interest                     |                                                        |   |   |   |   |   |   |
|   bearing      liabilities    |      828,867                       |          6,831 | 3.30% |   |      724,208 |         8,151 | 4.50% |
|                                    |                                                        |   |   |   |   |   |   |
| Demand      deposits                    |        46,842            |   |   |   |        50,959 |   |   |
| Accrued      expenses and               |                                                        |   |   |   |   |   |   |
|   other      liabilities      |          4,972 |   |   |   |          5,814 |   |   |
| Shareholders'      equity               |        58,967            |   |   |   |        67,507 |   |   |
| Total      liabilities and equity       |  $   939,648                            |   |   |   |  $   848,488 |   |   |
|                                    |                                                        |   |   |   |   |   |   |
| Net      interest income                |                                                        |  $      5,528 |   |   |   |  $     6,148 |   |
| Interest      margin                    |                                                        |   | 2.45% |   |   |   | 3.03% |
| Interest      spread                    |                                                        |   | 2.19% |   |   |   | 2.54% |

----

|   |                                    | Three months ended March31,                                                                 |                                                                              |
|--------|-----------------------------------------|---------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------|
|   |                                    | 2009 vs      2008                                                                           |                                                                              |
|   |                                    | Increase      (decrease) in Interest                                                        |                                                                              |
|   |                                    | Income/Expense                                                                              |                                                                              |
|   |                                    | Due      to change in:                                                                      |                                                                              |
|   |                                    | Volume                                                                                      | Rate                                                                              | Total |   |
|   |                                    | (dollars      in thousands)                                                                 |                                                                              |
|   | Interest      earning assets:           |                                                                                        |                                                                              |   |   |
|   | Loans                                   |  $      1,471                                            |  $    (3,018)                                            |  $    (1,547) |   |
|   | Federal      funds sold and             |                                                                                        |                                                                              |   |   |
|   |   other      cash equivalents |              78            |          (274)                       |          (196) |   |
|   | Investments                             |          (120)                                 |            (77)            |          (197) |   |
|   | Total      interest                     |                                                                                        |                                                                              |   |   |
|   |   earning      assets         |         1,429                                       |        (3,369)                                 |        (1,940) |   |
|   |                                    |                                                                                        |                                                                              |   |   |
|   | Interest      bearing liabilities:      |                                                                                        |                                                                              |   |   |
|   | Deposits                                |  $        915                                  |  $    (2,282)                                            |  $    (1,367) |   |
|   | FHLB      advances                      |            129                       |            (11)            |            118 |   |
|   | Subordinated      debt                  |                - |            (67)            |            (67) |   |
|   | Other      borrowings                   |                - |              (4) |              (4) |   |
|   | Total      interest                     |                                                                                        |                                                                              |   |   |
|   |   bearing      liabilities    |         1,044                                       |        (2,364)                                 |        (1,320) |   |
|   |                                    |                                                                                        |                                                                              |   |   |
|   | Net      interest income                |  $        385                                  |  $    (1,005)                                            |  $       (620) |   |

----

----

----

|   |                           | March      31, |   | December      31, |   |
|--------|--------------------------------|----------------|--------|-------------------|--------|
|   |                           | 2009           |   | 2008              |   |
|   | Total      Risk-based Capital  | 10.11%         |   | 10.27%            |   |
|   | Tier      1 Risk-based Capital | 8.84%          |   | 9.01%             |   |
|   | Leverage      Capital          | 6.76%          |   | 7.23%             |   |

|   |                           | March      31, |   | December      31, |   |
|--------|--------------------------------|----------------|--------|-------------------|--------|
|   |                           | 2009           |   | 2008              |   |
|   | Total      Risk-based Capital  | 10.07%         |   | 10.22%            |   |
|   | Tier      1 Risk-based Capital | 8.80%          |   | 8.96%             |   |
|   | Leverage      Capital          | 6.74%          |   | 7.19%             |   |

----

----

----

|                      | Basis  | Interest      Rate   | March      31, | December      31, |
|---------------------------|--------|----------------------|----------------|-------------------|
|                      | Points | Risk      Guidelines | 2009           | 2008              |
|                      |   |                 |           |              |
| GAP      percentage total |   | +/-      10%         | -0.58%         | 2.51%             |
| Net      interest income  | 200    | +/-      10%         | -1.63%         | -1.32%            |
|                      | -200   | +/-      10%         | -0.63%         | -0.54%            |
| Net      portfolio value  | 200    | +/-      20%         | -11.08%        | -12.48%           |
|                      | -200   | +/-      20%         | 3.83%          | 5.40%             |

----

| Net      Interest Income and Economic Value |
|---------------------------------------------|
| Summary      Performance                    |
|                                        |
| March      31, 2009                         |
|                                        | Net      Interest Income |   | Net      Portfolio Value |
| Projected      Interest                     | Estimated | $      Change | %      Change |   | Estimated | $      Change | %      Change |
| Rate      Scenario                          | Value | from      Base | from      Base |   | Value | from      Base | from      Base |
| +      200                                  |       24,608 |          (407) | -1.63% |   |       48,314 |       (6,019) | -11.08% |
| +      100                                  |       24,798 |          (217) | -0.87% |   |       51,540 |       (2,793) | -5.14% |
| BASE                                        |       25,015 |   |   |   |       54,333 |   |   |
| -      100                                  |       25,046 |              31 | 0.12% |   |       57,158 |       2,825 | 5.20% |
| -      200                                  |       24,856 |          (159) | -0.63% |   |       56,413 |       2,080 | 3.83% |
|                                        |   |   |   |   |   |   |   |
| December      31, 2008                      |
|                                        | Net      Interest Income |   | Net      Portfolio Value |
| Projected      Interest                     | Estimated | $      Change | %      Change |   | Estimated | $      Change | %      Change |
| Rate      Scenario                          | Value | from      Base | from      Base |   | Value | from      Base | from      Base |
| +      200                                  |       22,609 |          (302) | -1.32% |   |       67,804 |       (9,668) | -12.48% |
| +      100                                  |       22,745 |          (166) | -0.73% |   |       72,462 |       (5,010) | -6.47% |
| BASE                                        |       22,911 |   |   |   |       77,472 |   |   |
| -      100                                  |       22,927 |              16 | 0.07% |   |       80,422 |         2,950 | 3.81% |
| -      200                                  |       22,788 |          (123) | -0.54% |   |       81,658 |         4,186 | 5.40% |

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

----

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

----

|   | No.       | Description                                                                                                                                                                                                                                                                                                                      |
|--------|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 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(a)(15) | Formal      Written Agreement between Patriot National Bank and the Office of the      Comptroller of the Currency (incorporated by reference to Exhibit      10(a)(15) to Bancorp’s Current Report on Form 8-K dated February 9, 2009      (Commission File No. 000-29599)).                                              |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 10(c)     | 1999      Stock Option Plan of the Bank (incorporated by reference to Exhibit 10(c)      to Bancorp’s Current Report on Form 8-K dated December 1, 1999 (Commission      File No. 000-29599)).                                                                                                                             |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 14        | Code      of Conduct for Senior Financial Officers (incorporated by reference to      Exhibit 14 to Bancorp’s Annual Report on Form 10 - KSB for      the year ended December 31, 2004 (Commission File No.      000-29599).                                                                                |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 21        | Subsidiaries      of Bancorp (incorporated by reference to Exhibit 21 to Bancorp’s Annual      Report on Form 10-KSB for the year ended December 31, 1999 (Commission      File No. 000-29599)).                                                                                                                           |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 31(1)     | Rule      13a-14(a)/15d-14(a) Certification of Chief Executive    Officer                                                                                                                                                                                                                                                        |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 31(2)     | Rule      13a-14(a)/15d-14(a) Certification of Chief Financial    Officer                                                                                                                                                                                                                                                        |
|   |      |                                                                                                                                                                                                                                                                                                                             |
|   | 32        | Section      1350 Certifications                                                                                                                                                                                                                                                                                                 |

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

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