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|                                                             | Page   |
|------------------------------------------------------------------|--------|
|                                                             |   |
| Report of Independent Registered Public Accounting Firm          |   |
|                                                             |   |
| Consolidated Financial Statements                                |   |
|                                                             |   |
| Consolidated Statements of Financial Condition                   | 1      |
|                                                             |   |
| Consolidated Statements of Income                                | 2      |
|                                                             |   |
| Consolidated Statements of Changes in Stockholders’ Equity | 3      |
|                                                             |   |
| Consolidated Statements of Cash Flows                            | 4      |
|                                                             |   |
| Notes to Consolidated Financial Statements                       | 6      |

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|                                                                                                                                                                             |   | December 31,                     |      |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------|-----------|
|                                                                                                                                                                             |   | 2010                                  |      |   | 2009 |   |
|                                                                                                                                                                             |   | (In Thousands, except for share data) |      |
| Assets                                                                                                                                                                           |   |                                  |      |   |   |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |
| Cash and amounts due from depository institutions                                                                                                                                |   | $                                     | 22,065    |   |   | $ | 3,587 |   |
| Interest-bearing deposits                                                                                                                                                        |   |                                  | 99,062    |   |   |   | 63,760 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Cash and Cash Equivalents                                                                                                                                                        |   |                                  | 121,127   |   |   |   | 67,347 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Securities available for sale                                                                                                                                                    |   |                                  | 1,098     |   |   |   | 1,346 |   |
| Securities held to maturity, fair value $166,785 and $133,050;   respectively                                                                                     |   |                                  | 165,572   |   |   |   | 132,644 |   |
| Loans held for sale                                                                                                                                                              |   |                                  | 5,572     |   |   |   | 4,275 |   |
| Loans receivable, net of allowance for loan losses of $8,417 and $6,644; respectively                                                                                            |   |                                  | 773,101   |   |   |   | 401,872 |   |
| Premises and equipment                                                                                                                                                           |   |                                  | 11,359    |   |   |   | 5,359 |   |
| Property held for sale                                                                                                                                                           |   |                                  | 1,017     |   |   |   | - |   |
| Federal Home Loan Bank of New York stock                                                                                                                                         |   |                                  | 6,723     |   |   |   | 5,714 |   |
| Interest receivable                                                                                                                                                              |   |                                  | 5,203     |   |   |   | 3,799 |   |
| Real estate owned                                                                                                                                                                |   |                                  | 3,602     |   |   |   | 1,270 |   |
| Deferred income taxes                                                                                                                                                            |   |                                  | 5,785     |   |   |   | 3,618 |   |
| Other assets                                                                                                                                                                     |   |                                  | 6,729     |   |   |   | 4,259 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Total Assets                                                                                                                                                                     |   | $                                     | 1,106,888 |   |   | $ | 631,503 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Liabilities and Stockholders’ Equity                                                                                                                                       |   |                                  |      |   |   |   |   |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Liabilities                                                                                                                                                                      |   |                                  |      |   |   |   |   |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Non-interest bearing deposits                                                                                                                                                    |   | $                                     | 69,471    |   |   | $ | 37,082 |   |
| Interest bearing deposits                                                                                                                                                        |   |                                  | 816,817   |   |   |   | 426,656 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Total deposits                                                                                                                                                                   |   |                                  | 886,288   |   |   |   | 463,738 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Long-term debt                                                                                                                                                                   |   |                                  | 114,124   |   |   |   | 114,124 |   |
| Other liabilities                                                                                                                                                                |   |                                  | 7,502     |   |   |   | 2,250 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Total Liabilities                                                                                                                                                                |   |                                  | 1,007,914 |   |   |   | 580,112 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Stockholders’ Equity                                                                                                                                                       |   |                                  |      |   |   |   |   |   |
| Common stock, stated value $0.064; 20,000,000 sharesauthorized; 10,144,830 and 5,195,658 shares, respectively, issued; 9,383,695 and 4,657,906 shares, respectively, outstanding |   |                                  | 649       |   |   |   | 332 |   |
| Paid-in capital                                                                                                                                                                  |   |                                  | 85,327    |   |   |   | 46,926 |   |
| Treasury stock, at cost, 761,135 and 537,752 shares, respectively                                                                                                                |   |                                  | (10,760   | ) |   |   | (8,719 | ) |
| Retained earnings                                                                                                                                                                |   |                                  | 23,753    |   |   |   | 12,839 |   |
| Accumulated other comprehensive income                                                                                                                                           |   |                                  | 5         |   |   |   | 13 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Total Stockholders’ Equity                                                                                                                                                 |   |                                  | 98,974    |   |   |   | 51,391 |   |
|                                                                                                                                                                             |   |                                  |      |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity                                                                                                                                 |   | $                                     | 1,106,888 |   |   | $ | 631,503 |   |

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|                                                 |   | Years Ended December 31,             |   |
|------------------------------------------------------|--------|-------------------------------------------|--------|
|                                                 |   | 2010                                      |   |   | 2009 |   |   | 2008 |   |
|                                                 |   | (In Thousands, Except for Per Share Data) |   |
| Interest Income                                      |   |                                      |   |   |   |   |   |   |   |
| Loans                                                |   | $                                         | 34,502 |   |   | $ | 27,349 |   |   | $ | 27,248 |   |
| Investments, taxable                                 |   |                                      | 5,457  |   |   |   | 6,982 |   |   |   | 9,185 |   |
| Investments, nontaxable                              |   |                                      | 24     |   |   |   | - |   |   |   | - |   |
| Other interest-earning assets                        |   |                                      | 117    |   |   |   | 47 |   |   |   | 190 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Total Interest Income                                |   |                                      | 40,100 |   |   |   | 34,378 |   |   |   | 36,623 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Interest Expense                                     |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                            |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Demand                                               |   |                                      | 938    |   |   |   | 877 |   |   |   | 1,046 |   |
| Savings and club                                     |   |                                      | 1,304  |   |   |   | 1,157 |   |   |   | 1,370 |   |
| Certificates of deposit                              |   |                                      | 6,220  |   |   |   | 7,984 |   |   |   | 9,106 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |                                      | 8,462  |   |   |   | 10,018 |   |   |   | 11,522 |   |
| Borrowed money                                       |   |                                      | 5,206  |   |   |   | 4,976 |   |   |   | 5,141 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Total Interest Expense                               |   |                                      | 13,668 |   |   |   | 14,994 |   |   |   | 16,663 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income                                  |   |                                      | 26,432 |   |   |   | 19,384 |   |   |   | 19,960 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Provision for Loan Losses                            |   |                                      | 2,450  |   |   |   | 1,550 |   |   |   | 1,300 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Net Interest Income after Provision for Loan Losses  |   |                                      | 23,982 |   |   |   | 17,834 |   |   |   | 18,660 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Non-Interest  Income (Loss)                |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Fees and service charges                             |   |                                      | 907    |   |   |   | 657 |   |   |   | 689 |   |
| Gain on sales of loans originated for sale           |   |                                      | 295    |   |   |   | 225 |   |   |   | 137 |   |
| (Loss) gain on sale of real estate owned             |   |                                      | (345   | ) |   |   | 13 |   |   |   | 1 |   |
| Gain on bargain purchase                             |   |                                      | 12,582 |   |   |   | - |   |   |   | - |   |
| Other than temporary impairment on security          |   |                                      | -      |   |   |   | - |   |   |   | (2,915 | ) |
| Other                                                |   |                                      | 423    |   |   |   | 36 |   |   |   | 34 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Total Non-Interest Income (Loss)                     |   |                                      | 13,862 |   |   |   | 931 |   |   |   | (2,054 | ) |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Non-Interest Expenses                                |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Salaries and employee benefits                       |   |                                      | 10,785 |   |   |   | 5,403 |   |   |   | 5,492 |   |
| Occupancy expense of premises                        |   |                                      | 1,932  |   |   |   | 1,122 |   |   |   | 1,059 |   |
| Equipment                                            |   |                                      | 3,293  |   |   |   | 2,124 |   |   |   | 2,019 |   |
| Professional Fees                                    |   |                                      | 780    |   |   |   | 465 |   |   |   | 319 |   |
| Directors Fees                                       |   |                                      | 553    |   |   |   | 395 |   |   |   | 351 |   |
| Regulatory Assessments                               |   |                                      | 1,204  |   |   |   | 1,137 |   |   |   | 296 |   |
| Advertising                                          |   |                                      | 336    |   |   |   | 273 |   |   |   | 241 |   |
| Merger related expenses                              |   |                                      | 644    |   |   |   | 648 |   |   |   | 172 |   |
| Loss on overdrafts                                   |   |                                      | -      |   |   |   | - |   |   |   | 560 |   |
| Other                                                |   |                                      | 2,486  |   |   |   | 829 |   |   |   | 805 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Total Non-Interest Expenses                          |   |                                      | 22,013 |   |   |   | 12,396 |   |   |   | 11,314 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Income before Income Taxes                           |   |                                      | 15,831 |   |   |   | 6,369 |   |   |   | 5,292 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Income Taxes                                         |   |                                      | 1,505  |   |   |   | 2,621 |   |   |   | 1,820 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Net Income                                           |   | $                                         | 14,326 |   |   | $ | 3,748 |   |   | $ | 3,472 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Net Income per Common Share                          |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Basic                                                |   | $                                         | 2.06   |   |   | $ | 0.81 |   |   | $ | 0.75 |   |
| Diluted                                              |   | $                                         | 2.05   |   |   | $ | 0.80 |   |   | $ | 0.74 |   |
|                                                 |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Weighted Average Number of Common Shares Outstanding |   |                                      |   |   |   |   |   |   |   |   |   |   |
| Basic                                                |   |                                      | 6,968  |   |   |   | 4,655 |   |   |   | 4,629 |   |
| Diluted                                              |   |                                      | 6,983  |   |   |   | 4,676 |   |   |   | 4,706 |   |

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|                                                                                                                               |   | CommonStock                                            |    |   | Paid-InCapital |   |    | Treasury Stock |   |   | RetainedEarnings |   |   | AccumulatedOtherComprehensiveIncome (Loss) |    |   | Total  |   |
|------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------------------------|---------|--------|----------------|--------|---------|----------------|--------|--------|------------------|--------|--------|--------------------------------------------|---------|--------|--------|--------|
|                                                                                                                               |   | (In Thousands, except for share and per share amounts) |    |
|                                                                                                                               |   |                                                   |    |
| Balance - December 31, 2007                                                                                                        |   | $                                                      | 325     |   |           | $      | 45,795  |           |   | $      | (7,385           | )      |   | $                                          | 9,749   |   |   | $      | 26 |   |   | $ | 48,510 |   |
|                                                                                                                               |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Tax benefit from exercise of stock options                                                                                         |   |                                                   | -       |   |           |   | 150     |           |   |   | -                |   |   |                                       | -       |   |   |   | - |   |   |   | 150 |   |
| Exercise of stock options (104,873 shares)                                                                                         |   |                                                   | 6       |   |           |   | 919     |           |   |   | -                |   |   |                                       | -       |   |   |   | - |   |   |   | 925 |   |
| Treasury stock purchases (93,029 shares)                                                                                           |   |                                                   | -       |   |           |   | -       |           |   |   | (1,295           | )      |   |                                       | -       |   |   |   | - |   |   |   | (1,295 | ) |
| Cash dividend ($0.41 per share) declared                                                                                           |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | (1,896  | )      |   |   | - |   |   |   | (1,896 | ) |
| Net income                                                                                                                         |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | 3,472   |   |   |   | - |   |   |   | 3,472 |   |
| Loss on other than temporary impairmenton security, net of deferred income taxbenefit of $1,164                                    |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | -       |   |   |   | 1,751 |   |   |   | 1,751 |   |
| Unrealized loss on securitiesAvailable for sale, net ofDeferred income tax of $1,266                                               |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | -       |   |   |   | 1,902 |   |   |   | (1,902 | ) |
| Total Comprehensive income                                                                                                         |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   | 3,321 |   |
|                                                                                                                               |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Balance - December 31, 2008                                                                                                        |   |                                                   | 331     |   |           |   | 46,864  |           |   |   | (8,680           | )      |   |                                       | 11,325  |   |   |   | (125 | ) |   |   | 49,715 |   |
|                                                                                                                               |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Exercise of stock options (11,933)                                                                                                 |   |                                                   | 1       |   |           |   | 62      |           |   |   | -                |   |   |                                       | -       |   |   |   | - |   |   |   | 63 |   |
| Treasury stock purchases (4,072 shares)                                                                                            |   |                                                   | -       |   |           |   | -       |           |   |   | (39              | )      |   |                                       | -       |   |   |   | - |   |   |   | (39 | ) |
| Cash dividend ($0.48 per share) declared                                                                                           |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | (2,234  | )      |   |   | - |   |   |   | (2,234 | ) |
| Net income                                                                                                                         |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | 3,748   |   |   |   | - |   |   |   | 3,748 |   |
| Unrealized loss on securitiesavailable for sale, net ofdeferred income tax of $93                                                  |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | -       |   |   |   | 138 |   |   |   | 138 |   |
| Total Comprehensive income                                                                                                         |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   | 3,886 |   |
|                                                                                                                               |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Balance - December 31, 2009                                                                                                        |   |                                                   | 332     |   |           |   | 46,926  |           |   |   | (8,719           | )      |   |                                       | 12,839  |   |   |   | 13 |   |   |   | 51,391 |   |
|                                                                                                                               |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Common Stock issued for the acquisitionof Pamrapo Bancorp, Inc.(4,935,495 shares, including 30,000 shares transferred to treasury) |   |                                                   | 316     |   |           |   | 38,329  |           |   |   | (235             | )      |   |                                       | -       |   |   |   | - |   |   |   | 38,410 |   |
| Exercise of stock options (13,677 shares)                                                                                          |   |                                                   | 1       |   |           |   | 72      |           |   |   |  -          |   |   |                                       |  - |   |   |   |  - |   |   |   | 73 |   |
| Treasury stock purchases (193,383 shares)                                                                                          |   |                                                   | -       |   |           |   | -       |           |   |   | (1,806           | )      |   |                                       | -       |   |   |   | - |   |   |   | (1,806 | ) |
| Cash dividend ($0.48 per share) declared                                                                                           |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | (3,412  | )      |   |   | - |   |   |   | (3,412 | ) |
| Net income                                                                                                                         |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | 14,326  |   |   |   | - |   |   |   | 14,326 |   |
| Unrealized gain (loss) on securitiesavailable for sale, net ofdeferred income tax of $9                                            |   |                                                   |  - |   |           |   | ­- |           |   |   |  -          |   |   |                                       | -       |   |   |   | (12 | ) |   |   | (12 | ) |
| Benefit plans, net ofdeferred income tax of $3                                                                                     |   |                                                   | -       |   |           |   | -       |           |   |   | -                |   |   |                                       | -       |   |   |   | 4 |   |   |   | 4 |   |
|                                                                                                                               |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Total Comprehensive income                                                                                                         |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   | 14,318 |   |
|                                                                                                                               |   |                                                   |    |   |           |   |    |           |   |   |             |   |   |                                       |    |   |   |   |   |   |   |   |   |   |
| Balance - December 31, 2010                                                                                                        |   | $                                                      | 649     |   |           | $      | 85,327  |           |   | $      | (10,760          | )      |   | $                                          | 23,753  |   |   | $      | 5 |   |   | $ | 98,974 |   |

----

----

|                                                                                       |   | Years Ended December 31, |     |
|--------------------------------------------------------------------------------------------|--------|-------------------------------|----------|
|                                                                                       |   | 2010                          |     |   | 2009 |   |   | 2008 |   |
|                                                                                       |   | (In Thousands)                |     |
| Cash Flows from Operating Activities                                                       |   |                          |     |   |   |   |   |   |   |
| Net income                                                                                 |   | $                             | 14,326   |   |   | $ | 3,748 |   |   | $ | 3,472 |   |
| Adjustments to reconcile net income to net cash (used in) provided byoperating activities: |   |                          |     |   |   |   |   |   |   |   |   |   |
| Depreciation of premises and equipment                                                     |   |                          | 642      |   |   |   | 363 |   |   |   | 401 |   |
| Amortization (accretion), net                                                              |   |                          | 1,877    |   |   |   | 367 |   |   |   | (684 | ) |
| Provision for loan losses                                                                  |   |                          | 2,450    |   |   |   | 1,550 |   |   |   | 1,300 |   |
| Deferred income tax benefit                                                                |   |                          | (341     | ) |   |   | (598 | ) |   |   | (1,659 | ) |
| Other than temporary impairment loss                                                       |   |                          | -        |   |   |   | - |   |   |   | 2,915 |   |
| Loans originated for sale                                                                  |   |                          | (26,142  | ) |   |   | (19,576 | ) |   |   | (6,705 | ) |
| Proceeds from sales of loans originated for sale                                           |   |                          | 19,433   |   |   |   | 16,948 |   |   |   | 7,552 |   |
| Gain on sales of loans originated for sale                                                 |   |                          | (295     | ) |   |   | (225 | ) |   |   | (137 | ) |
| Loss (gain) on sale of real estate owned                                                   |   |                          | 345      |   |   |   | (13 | ) |   |   | (1 | ) |
| Gain on bargain purchase                                                                   |   |                          | (12,582  | ) |   |   | - |   |   |   | - |   |
| Decrease (increase) in interest receivable                                                 |   |                          | 501      |   |   |   | 85 |   |   |   | (108 | ) |
| Increase in other assets                                                                   |   |                          | (1,207   | ) |   |   | (2,607 | ) |   |   | (718 | ) |
| (Decrease) in accrued interest payable                                                     |   |                          | (239     | ) |   |   | (120 | ) |   |   | (59 | ) |
| (Decrease) increase in other liabilities                                                   |   |                          | (1,159   | ) |   |   | 88 |   |   |   | 317 |   |
|                                                                                       |   |                          |     |   |   |   |   |   |   |   |   |   |
| Net Cash (Used in) Provided by Operating Activities                                        |   |                          | (2,391   | ) |   |   | 10 |   |   |   | 5,886 |   |
| Cash Flows from Investing Activities                                                       |   |                          |     |   |   |   |   |   |   |   |   |   |
| Proceeds from repayments and calls on securities held to maturity                          |   |                          | 156,757  |   |   |   | 155,553 |   |   |   | 84,400 |   |
| Purchases of securities held to maturity                                                   |   |                          | (104,997 | ) |   |   | (147,647 | ) |   |   | (60,606 | ) |
| Purchases of securities available for sale                                                 |   |                          | -        |   |   |   | (227 | ) |   |   | (2,000 | ) |
| Proceeds from sales of participation interests in loans                                    |   |                          | 1,708    |   |   |   | 1,238 |   |   |   | 2,523 |   |
| Proceeds from sale of real estate owned                                                    |   |                          | 1,260    |   |   |   | 307 |   |   |   | 288 |   |
| Purchases of loans                                                                         |   |                          | -        |   |   |   | (1,744 | ) |   |   | (113 | ) |
| Net decrease (increase) in loans receivable                                                |   |                          | 39,551   |   |   |   | 4,202 |   |   |   | (46,449 | ) |
| Improvements to real estate owned                                                          |   |                          | (32      | ) |   |   | (58 | ) |   |   | (241 | ) |
| Additions to premises and equipment                                                        |   |                          | (704     | ) |   |   | (95 | ) |   |   | (99 | ) |
| Redemption (purchase) of Federal Home Loan Bank of New York stock                          |   |                          | 1,869    |   |   |   | 22 |   |   |   | (176 | ) |
| Cash acquired in acquisition                                                               |   |                          | 22,979   |   |   |   | - |   |   |   | - |   |
| Net Cash Provided by (Used in) Investing Activities                                        |   |                          | 118,391  |   |   |   | 11,551 |   |   |   | (22,473 | ) |
| Cash Flows from Financing Activities                                                       |   |                          |     |   |   |   |   |   |   |   |   |   |
| Net (decrease) increase in deposits                                                        |   |                          | (13,260  | ) |   |   | 53,235 |   |   |   | 11,684 |   |
| Proceeds of long-term debt                                                                 |   |                          | -        |   |   |   | - |   |   |   | - |   |
| Repayment  of long-term debt                                                     |   |                          | (43,815  | ) |   |   | - |   |   |   | - |   |
| Net change in short-term borrowings                                                        |   |                          | -        |   |   |   | (2,000 | ) |   |   | 2,000 |   |
| Purchase of treasury stock                                                                 |   |                          | (1,806   | ) |   |   | (39 | ) |   |   | (1,295 | ) |
| Cash dividends paid                                                                        |   |                          | (3,412   | ) |   |   | (2,234 | ) |   |   | (1,896 | ) |
| Net proceeds from issuance of common stock                                                 |   |                          | 73       |   |   |   | 63 |   |   |   | 925 |   |
| Tax benefit from exercise of stock options                                                 |   |                          | -        |   |   |   | - |   |   |   | 150 |   |
|                                                                                       |   |                          |     |   |   |   |   |   |   |   |   |   |
| Net Cash (Used In) Provided by Financing Activities                                        |   |                          | (62,220  | ) |   |   | 49,025 |   |   |   | 11,568 |   |
|                                                                                       |   |                          |     |   |   |   |   |   |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents                                       |   |                          | 53,780   |   |   |   | 60,586 |   |   |   | (5,019 | ) |
|                                                                                       |   |                          |     |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents - Beginning                                                      |   |                          | 67,347   |   |   |   | 6,761 |   |   |   | 11,780 |   |
|                                                                                       |   |                          |     |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents - Ending                                                         |   | $                             | 121,127  |   |   | $ | 67,347 |   |   | $ | 6,761 |   |

----

----

| Cash paid during the year for:                                    |   |   |    |   |   |   |   |   |   |
|-------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|--------|--------|--------|
| Income taxes                                                      |   | $      | 2,252   |   |   | $      | 3,220  |   |   | $ | 3,903 |   |
| Interest                                                          |   | $      | 13,907  |   |   | $      | 15,114 |   |   | $ | 16,722 |   |
| Transfer of loans to other real estate owned                      |   | $      | 6,887   |   |   | $      | 71     |   |   | $ | - |   |
| Loans to facilitate other real estate owned                       |   | $      | 3,771   |   |   | $      | -      |   |   | $ | - |   |
| Reclassification of loans originated for sale to held to maturity |   | $      | 5,707   |   |   | $      | -      |   |   | $ | - |   |
|                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                              |   |   |    |   |   |   |   |   |   |   |   |   |
| Acquisition of noncash assets and liabilities                     |   |   |    |   |   |   |   |   |   |   |   |   |
| Assets acquired                                                   |   | $      | 514,523 |   |   | $      | -      |   |   | $ | - |   |
| Liabilities assumed                                               |   | $      | 486,275 |   |   | $      | -      |   |   | $ | - |   |

----

----

----

----

----

----

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|                              | Years                                   |
|-----------------------------------|-----------------------------------------|
| Buildings                         | 40                                      |
| Building improvements             | 7 - 40                                  |
| Furniture, fixtures and equipment | 3 - 5                                   |
| Leasehold improvements            | Shorter of useful life or term of lease |

----

----

|   | Interest Rate Risk |
|--------|--------------------|

----

----

----

----

|   | • | For purposes of reporting fair value measurement for each class of assets and liabilities, a reporting entity needs to use judgment in determining the appropriate classes of assets and liabilities; and |
|--------|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | • | A reporting entity should provide disclosures about the valuation techniques and inputs used to measure fair value for both recurring and nonrecurring fair value measurements. |
|--------|---------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

----

----

|                                      |   | December 31, 2010 |   |
|-------------------------------------------|--------|------------------------|--------|
|                                      |   | Cost                   |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
|                                      |   | (In Thousands)         |   |
|                                      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Equity securities- Financial institutions |   | $                      | 1,097  |   |   | $ | 32 |   |   | $ | 31 |   |   | $ | 1,098 |   |

|                                      |   | December 31, 2009 |   |
|-------------------------------------------|--------|------------------------|--------|
|                                      |   | Cost                   |   |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
|                                      |   | (In Thousands)         |   |
|                                      |   |                   |   |   |   |   |   |   |   |   |   |   |
| Equity securities- Financial institutions |   | $                      | 1,324  |   |   | $ | 40 |   |   | $ | 18 |   |   | $ | 1,346 |   |

|              |   | Less than 12 Months |   |   | More than 12 Months |   |   | Total     |   |
|-------------------|--------|---------------------|--------|--------|---------------------|--------|--------|-----------|--------|
|              |   | FairValue           |   |   | Unrealized Losses   |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |
|              |   | (In Thousands)      |   |
| December 31, 2010 |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |
| Equity securities |   | $                   | 65     |   |                | $      | 31     |      |   | $ | - |   |   | $ | - |   |   | $ | 65 |   |   | $ | 31 |   |
| December 31, 2009 |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity securities |   | $                   | -      |   |                | $      | -      |      |   | $ | 982 |   |   | $ | 18 |   |   | $ | 982 |   |   | $ | 18 |   |

----

----

|                                                    |   | December 31, 2010 |    |
|---------------------------------------------------------|--------|------------------------|---------|
|                                                    |   | Amortized Cost         |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
|                                                    |   | (In Thousands)         |    |
|                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies:                               |   |                   |    |   |   |   |   |   |   |   |   |   |
| Due after one through five years                        |   | $                      | 3,315   |   |   | $ | 180 |   |   | $ | - |   |   | $ | 3,495 |   |
| Due after ten years                                     |   |                   | 27,523  |   |   |   | 14 |   |   |   | 62 |   |   |   | 27,475 |   |
|                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                   | 30,838  |   |   |   | 194 |   |   |   | 62 |   |   |   | 30,970 |   |
|                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities:                 |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due within one year                                     |   |                   | 6       |   |   |   | - |   |   |   | - |   |   |   | 6 |   |
| Due after one year through five years                   |   |                   | 775     |   |   |   | 24 |   |   |   | 1 |   |   |   | 798 |   |
| Due after five years through ten years                  |   |                   | 54,629  |   |   |   | 374 |   |   |   | 357 |   |   |   | 54,646 |   |
| Due after ten years                                     |   |                   | 71,545  |   |   |   | 1,552 |   |   |   | 493 |   |   |   | 72,604 |   |
|                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                    |   |                   | 126,955 |   |   |   | 1,950 |   |   |   | 851 |   |   |   | 128,054 |   |
|                                                    |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Subordinated notes:                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due within one year                                     |   |                   | 6,000   |   |   |   | - |   |   |   | - |   |   |   | 6,000 |   |
| Municipal Obligations:                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Due after ten years                                     |   |                   | 1,376   |   |   |   | - |   |   |   | 21 |   |   |   | 1,355 |   |
| Trust originated preferred security:Due after ten years |   |                   | 403     |   |   |   | 3 |   |   |   | - |   |   |   | 406 |   |
|                                                    |   | $                      | 165,572 |   |   | $ | 2,147 |   |   | $ | 934 |   |   | $ | 166,785 |   |

----

----

|                                                       |   | December 31, 2009 |    |
|------------------------------------------------------------|--------|------------------------|---------|
|                                                       |   | Amortized Cost         |    |   | GrossUnrealizedGains |   |   | GrossUnrealizedLosses |   |   | Fair Value |   |
|                                                       |   | (In Thousands)         |    |
|                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |
| U.S. Government Agencies:                                  |   |                   |    |   |   |   |   |   |   |   |   |   |
|                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |
| Due after one through five years                           |   | $                      | 3,315   |   |   | $ | 254 |   |   | $ | - |   |   | $ | 3,569 |   |
| Due after five through ten years                           |   |                   | 515     |   |   |   | - |   |   |   | 3 |   |   |   | 512 |   |
| Due after ten years                                        |   |                   | 94,193  |   |   |   | 11 |   |   |   | 1,397 |   |   |   | 92,807 |   |
|                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                   | 98,023  |   |   |   | 265 |   |   |   | 1,400 |   |   |   | 96,888 |   |
|                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgage-backed securities:Due within one year |   |                   | 346     |   |   |   | - |   |   |   | 2 |   |   |   | 344 |   |
| Due after one year through five years                      |   |                   | 39      |   |   |   | 1 |   |   |   | - |   |   |   | 40 |   |
| Due after five years through ten years                     |   |                   | 6,783   |   |   |   | 346 |   |   |   | - |   |   |   | 7,129 |   |
| Due after ten years                                        |   |                   | 27,453  |   |   |   | 1,217 |   |   |   | 21 |   |   |   | 28,649 |   |
|                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   |                   | 34,621  |   |   |   | 1,564 |   |   |   | 23 |   |   |   | 36,162 |   |
|                                                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                       |   | $                      | 132,644 |   |   | $ | 1,829 |   |   | $ | 1,423 |   |   | $ | 133,050 |   |

----

----

|                                   |   | Less than 12 Months |   |   | More than 12 Months |   |   | Total     |   |
|----------------------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|-----------|--------|
|                                   |   | FairValue           |   |   | Unrealized Losses   |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |
|                                   |   | (In Thousands)      |   |
|                                   |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |
| December 31, 2010:                     |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |
| U.S. GovernmentAgencies                |   | $                   | 20,328 |   |                | $      | 62     |      |   | $ | - |   |   | $ | - |   |   | $ | 20,328 |   |   | $ | 62 |   |
| Residential mortgage-backed securities |   |                | 74,899 |   |                |   | 851    |      |   |   | - |   |   |   | - |   |   |   | 74,899 |   |   |   | 851 |   |
| Municipal Obligations                  |   |                | 1,355  |   |                |   | 21     |      |   |   |  - |   |   |   |  - |   |   |   | 1,355 |   |   |   | 21 |   |
|                                   |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | $                   | 96,582 |   |                | $      | 934    |      |   | $ | - |   |   | $ | - |   |   | $ | 96,582 |   |   | $ | 934 |   |

|                                   |   | Less than 12 Months |   |   | More than 12 Months |   |   | Total     |   |
|----------------------------------------|--------|---------------------|--------|--------|---------------------|--------|--------|-----------|--------|
|                                   |   | FairValue           |   |   | Unrealized Losses   |   |   | FairValue |   |   | Unrealized Losses |   |   | FairValue |   |   | Unrealized Losses |   |
|                                   |   | (In Thousands)      |   |
| December 31, 2009                      |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |
| U.S. GovernmentAgencies                |   | $                   | 82,466 |   |                | $      | 1,400  |      |   | $ | - |   |   | $ | - |   |   | $ | 82,466 |   |   | $ | 1,400 |   |
| Residential mortgage-backed securities |   |                | 1,483  |   |                |   | 23     |      |   |   | - |   |   |   | - |   |   |   | 1,483 |   |   |   | 23 |   |
|                                   |   |                |   |   |                |   |   |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | $                   | 83,949 |   |                | $      | 1,423  |      |   | $ | - |   |   | $ | - |   |   | $ | 83,949 |   |   | $ | 1,423 |   |

----

----

|                        |   | December 31, |    |
|-----------------------------|--------|-------------------|---------|
|                        |   | 2010              |    |   | 2009 |   |
|                        |   | (In Thousands)    |    |
|                        |   |              |    |   |   |   |
| Real estate mortgage:       |   |              |    |   |   |   |
| Residential                 |   | $                 | 234,435 |   |   | $ | 76,490 |   |
| Commercial and multi-family |   |              | 410,212 |   |   |   | 223,792 |   |
| Construction                |   |              | 17,848  |   |   |   | 51,330 |   |
|                        |   |              |    |   |   |   |   |   |
|                        |   |              | 662,495 |   |   |   | 351,612 |   |
|                        |   |              |    |   |   |   |   |   |
| Commercial:                 |   |              |    |   |   |   |   |   |
| Business loans              |   |              | 13,932  |   |   |   | 18,256 |   |
| Lines of credit             |   |              | 40,228  |   |   |   | 4,231 |   |
|                        |   |              |    |   |   |   |   |   |
|                        |   |              | 54,160  |   |   |   | 22,487 |   |
|                        |   |              |    |   |   |   |   |   |
| Consumer:                   |   |              |    |   |   |   |   |   |
| Passbook or certificate     |   |              | 1,004   |   |   |   | 238 |   |
| Home equity lines of credit |   |              | 10,228  |   |   |   | 5,705 |   |
| Home equity                 |   |              | 53,375  |   |   |   | 28,593 |   |
| Automobile                  |   |              | 178     |   |   |   | 80 |   |
| Personal                    |   |              | 554     |   |   |   | 42 |   |
|                        |   |              |    |   |   |   |   |   |
|                        |   |              | 65,339  |   |   |   | 34,658 |   |
|                        |   |              |    |   |   |   |   |   |
| Deposit overdrafts          |   |              | 80      |   |   |   | 281 |   |
|                        |   |              |    |   |   |   |   |   |
| Total Loans                 |   |              | 782,074 |   |   |   | 409,038 |   |
|                        |   |              |    |   |   |   |   |   |
| Deferred loan fees, net     |   |              | (556    | ) |   |   | (522 | ) |
| Allowance for loan losses   |   |              | (8,417  | ) |   |   | (6,644 | ) |
|                        |   |              |    |   |   |   |   |   |
|                        |   |              | (8,973  | ) |   |   | (7,166 | ) |
|                        |   |              |    |   |   |   |   |   |
|                        |   | $                 | 773,101 |   |   | $ | 401,872 |   |

----

----

|                          |   | December 31, |    |
|-------------------------------|--------|-------------------|---------|
|                          |   | 2010              |    |   | 2009 |   |
|                          |   | (In Thousands)    |    |
|                          |   |              |    |   |   |   |
| Outstanding principal balance |   | $                 | 378,004 |   |   | $ | - |   |
| Carrying amount               |   |              | 374,057 |   |   |   | - |   |

| Balance – beginning |   | $      | -       |   |
|---------------------------|--------|--------|---------|--------|
| Pamrapo acquisiton        |   |   | 229,805 |   |
| Accretion                 |   |   | (24,314 | )      |
|                      |   |   |    |   |
| Balance - ending          |   | $      | 205,491 |   |

----

----

|                            |   | Years Ended December 31, |   |
|---------------------------------|--------|-------------------------------|--------|
|                            |   | 2010                          |   |   | 2009 |   |
|                            |   | (In Thousands)                |   |
|                            |   |                          |   |   |   |   |
| Balance – beginning       |   | $                             | 7,232  |   |   | $ | 7,061 |   |
| Loans originated                |   |                          | 1,837  |   |   |   | 2,800 |   |
| Changes in related party status |   |                          | 190    |   |   |   | (398 | ) |
| Collections of principal        |   |                          | (1,989 | ) |   |   | (2,231 | ) |
|                            |   |                          |   |   |   |   |   |   |
| Balance - ending                |   | $                             | 7,270  |   |   | $ | 7,232 |   |

|   | · | General economic conditions. |
|--------|--------|------------------------------|

|   | · | Trends in charge-offs. |
|--------|--------|------------------------|

|   | · | Trends and levels of delinquent loans. |
|--------|--------|----------------------------------------|

|   | · | Trends and levels of non-performing loans, including loans over 90 days delinquent. |
|--------|--------|-------------------------------------------------------------------------------------|

|   | · | Trends in volume and terms of loans. |
|--------|--------|--------------------------------------|

|   | · | Levels of allowance for specific classified loans. |
|--------|--------|----------------------------------------------------|

|   | · | Credit concentrations. |
|--------|--------|------------------------|

----

----

----

----

----

----

|                                                               |   | Residential |    |   | Commercial &Multi-family |   |    | Construction |   |   | Commercial Business (1) |   |   | Home equity (2) |   |   | Consumer |   |   | Unallocated |   |   | Total  |   |
|--------------------------------------------------------------------|--------|-------------|---------|--------|-----------------------------------|--------|---------|--------------|--------|--------|-------------------------|--------|--------|----------------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------|--------|
| Allowance for credit losses:                                       |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |
|                                                               |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |
| Ending balance                                                     |   | $           | 171     |   |                              | $      | 6,179   |         |   | $      | 426                     |   |   | $                    | 1,286  |   |     | $      | 204    |        |   | $      | 18     |   |   | $ | 133 |   |   | $ | 8,417 |   |
|                                                               |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated for impairment              |   | $           | -       |   |                              | $      | 1,656   |         |   | $      | -                       |   |   | $                    | 449    |   |     | $      | 2      |        |   | $      | -      |   |   | $ | - |   |   | $ | 2,107 |   |
|                                                               |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment              |   | $           | 171     |   |                              | $      | 4,523   |         |   | $      | 426                     |   |   | $                    | 837    |   |     | $      | 202    |        |   | $      | 18     |   |   | $ | 133 |   |   | $ | 6,310 |   |
|                                                               |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality    |   | $           | -       |   |                              | $      | -       |         |   | $      | -                       |   |   | $                    | -      |   |     | $      | -      |        |   | $      | -      |   |   | $ | - |   |   | $ | - |   |
|                                                               |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans receivables:                                                 |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance                                                     |   | $           | 234,435 |   |                              | $      | 410,212 |         |   | $      | 17,848                  |   |   | $                    | 54,160 |   |     | $      | 63,603 |        |   | $      | 1,816  |   |   | $ | - |   |   | $ | 782,074 |   |
|                                                               |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: individually evaluated  for impairment   |   | $           | 89      |   |                              | $      | 27,422  |         |   | $      | 2,910                   |   |   | $                    | 2,809  |   |     | $      | 372    |        |   | $      | -      |   |   | $ | - |   |   | $ | 33,602 |   |
|                                                               |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: collectively evaluated for impairment              |   | $           | 39,524  |   |                              | $      | 250,494 |         |   | $      | 13,532                  |   |   | $                    | 41,541 |   |     | $      | 28,992 |        |   | $      | 332    |   |   | $ | - |   |   | $ | 374,415 |   |
|                                                               |   |        |    |   |                              |   |    |         |   |   |                    |   |   |                 |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |
| Ending balance: loans acquired with deteriorated credit quality(3) |   | $           | 194,821 |   |                              | $      | 132,296 |         |   | $      | 1,406                   |   |   | $                    | 9,811  |   |     | $      | 34,240 |        |   | $      | 1,483  |   |   | $ | - |   |   | $ | 374,057 |   |

----

----

|                             |   | Years Ended December 31, |   |
|----------------------------------|--------|-------------------------------|--------|
|                             |   | 2010                          |   |   | 2009 |   |   | 2008 |   |
|                             |   | (Dollars in Thousands)        |   |
|                             |   |                          |   |   |   |   |   |   |   |
| Balance at beginning of period   |   | $                             | 6,644  |   |   | $ | 5,304 |   |   | $ | 4,065 |   |
|                             |   |                          |   |   |   |   |   |   |   |   |   |   |
| Charge-offs                      |   |                          | 689    |   |   |   | 212 |   |   |   | 101 |   |
|                             |   |                          |   |   |   |   |   |   |   |   |   |   |
| Recoveries                       |   |                          | 12     |   |   |   | 2 |   |   |   | 40 |   |
| Net charge-offs (recoveries)     |   |                          | 677    |   |   |   | 210 |   |   |   | 61 |   |
| Provisions charged to operations |   |                          | 2,450  |   |   |   | 1,550 |   |   |   | 1,300 |   |
| Ending balance                   |   | $                             | 8,417  |   |   | $ | 6,644 |   |   | $ | 5,304 |   |

|                        |   | At December 31, 2010(Dollars in Thousands) |   |
|-----------------------------|--------|-------------------------------------------------|--------|
| Non-accruing loans:         |   |                                            |   |
| Residential                 |   | $                                               | 15,115 |   |
| Construction                |   |                                            | 2,773  |   |
| Commercial business(1)      |   |                                            | 861    |   |
| Commercial and multi-family |   |                                            | 21,147 |   |
| Home equity(2)              |   |                                            | 1,632  |   |
| Consumer                    |   |                                            | 283    |   |
| Total                       |   | $                                               | 41,811 |   |

----

----

|                                |   | Recorded Investment |   |   | Unpaid Principal Balance |   |   | Related Allowance |   |
|-------------------------------------|--------|--------------------------|--------|--------|--------------------------|--------|--------|-------------------|--------|
| With no related allowance recorded: |   |                     |   |   |                     |   |   |              |   |
| Residential                         |   | $                        | 89     |   |                     | $      | 89     |              |   | $ | - |   |
| Commercial and multi-family         |   |                     | 9,709  |   |                     |   | 9,709  |              |   |   | - |   |
| Construction                        |   |                     | 2,910  |   |                     |   | 2,910  |              |   |   | - |   |
| Commercial business                 |   |                     | 981    |   |                     |   | 981    |              |   |   | - |   |
| Home equity                         |   |                     | 189    |   |                     |   | 189    |              |   |   | - |   |
| Consumer                            |   |                     | -      |   |                     |   | -      |              |   |   | - |   |
|                                |   |                     |   |   |                     |   |   |              |   |   |   |   |
| With an allowance recorded:         |   |                     |   |   |                     |   |   |              |   |   |   |   |
| Residential                         |   |                     | -      |   |                     |   | -      |              |   |   |   |   |
| Commercial and multi-family         |   |                     | 17,713 |   |                     |   | 17,713 |              |   |   | 1,656 |   |
| Construction                        |   |                     | -      |   |                     |   | -      |              |   |   | - |   |
| Commercial business                 |   |                     | 1,828  |   |                     |   | 1,828  |              |   |   | 449 |   |
| Home equity                         |   |                     | 183    |   |                     |   | 183    |              |   |   | 2 |   |
| Consumer                            |   |                     | -      |   |                     |   | -      |              |   |   | - |   |
|                                |   |                     |   |   |                     |   |   |              |   |   |   |   |
| Total:                              |   |                     |   |   |                     |   |   |              |   |   |   |   |
| Residential                         |   | $                        | 89     |   |                     | $      | 89     |              |   | $ | - |   |
| Commercial and multi-family         |   |                     | 27,422 |   |                     |   | 27,422 |              |   |   | 1,656 |   |
| Construction                        |   |                     | 2,910  |   |                     |   | 2,910  |              |   |   | - |   |
| Commercial business                 |   |                     | 2,809  |   |                     |   | 2,809  |              |   |   | 449 |   |
| Home equity                         |   |                     | 372    |   |                     |   | 372    |              |   |   | 2 |   |
| Consumer                            |   |                     | -      |   |                     |   | -      |              |   |   | - |   |

----

----

|                        |   | As of December 31, 2010 |   |
|-----------------------------|--------|-------------------------|--------|
|                        |   | 30-59 Days Past Due     |   |   | 60-89 Days Past Due |   |   | Greater than 90 Days |   |   | Total Past Due |   |   | Current |   |   | Total Loans Receivables |   |   | Loans Receivable>90 Days and Accruing |   |
|                        |   | (in Thousands)          |   |
| Residential                 |   | $                       | 5,010  |   |   | $ | 3,706 |   |   | $ | 15,115 |   |   | $ | 23,831 |   |   | $ | 210,604 |   |   | $ | 234,435 |   |   |   | — |   |
| Commercial and multi-family |   |                    | 20,071 |   |   |   | 5,391 |   |   |   | 21,147 |   |   |   | 46,609 |   |   |   | 363,603 |   |   |   | 410,212 |   |   |   | — |   |
| Construction                |   |                    | 1,889  |   |   |   | — |   |   |   | 2,773 |   |   |   | 4,662 |   |   |   | 13,186 |   |   |   | 17,848 |   |   |   | — |   |
| Commercial business(1)      |   |                    | 1,377  |   |   |   | 456 |   |   |   | 861 |   |   |   | 2,694 |   |   |   | 51,466 |   |   |   | 54,160 |   |   |   | — |   |
| Home equity(2)              |   |                    | 870    |   |   |   | 694 |   |   |   | 1,632 |   |   |   | 3,196 |   |   |   | 60,407 |   |   |   | 63,603 |   |   |   | — |   |
| Consumer                    |   |                    | 106    |   |   |   | 5 |   |   |   | 283 |   |   |   | 394 |   |   |   | 1,422 |   |   |   | 1,816 |   |   |   | — |   |
| Total                       |   | $                       | 29,323 |   |   | $ | 10,252 |   |   | $ | 41,811 |   |   | $ | 81,386 |   |   | $ | 700,688 |   |   | $ | 782,074 |   |   |   | — |   |

----

----

|                        |   | Pass   |    |   | Special Mention |   |   | Substandard |   |   | Doubtful |   |   | Loss   |   |   | Total  |   |
|-----------------------------|--------|--------|---------|--------|-----------------|--------|--------|-------------|--------|--------|----------|--------|--------|--------|--------|--------|--------|--------|
|                        |   |   |    |   |            |   |   |        |   |   |     |   |   |   |   |   |   |   |
| Residential                 |   | $      | 217,459 |   |            | $      | 4,930  |        |   | $      | 8,874    |   |   | $      | 3,172  |   |   | $      | - |   |   | $ | 234,435 |   |
| Commercial and multi-family |   |   | 349,219 |   |            |   | 30,538 |        |   |   | 17,760   |   |   |   | 12,578 |   |   |   | 117 |   |   |   | 410,212 |   |
| Construction                |   |   | 12,763  |   |            |   | 689    |        |   |   | 4,005    |   |   |   | 391    |   |   |   | - |   |   |   | 17,848 |   |
| Commercial business(1)      |   |   | 50,248  |   |            |   | 3,113  |        |   |   | 339      |   |   |   | 25     |   |   |   | 435 |   |   |   | 54,160 |   |
| Home equity(2)              |   |   | 61,682  |   |            |   | 807    |        |   |   | 488      |   |   |   | 510    |   |   |   | 116 |   |   |   | 63,603 |   |
| Consumer                    |   |   | 1,673   |   |            |   | 7      |        |   |   | -        |   |   |   | 136    |   |   |   | - |   |   |   | 1,816 |   |
| Total                       |   | $      | 693,044 |   |            | $      | 40,084 |        |   | $      | 31,466   |   |   | $      | 16,812 |   |   | $      | 668 |   |   | $ | 782,074 |   |

|                                      |   | December 31, |   |
|-------------------------------------------|--------|-------------------|--------|
|                                      |   | 2010              |   |   | 2009 |   |
|                                      |   | (In Thousands)    |   |
| Land                                      |   | $                 | 1,560  |   |   | $ | 890 |   |
| Buildings and improvements                |   |              | 8,425  |   |   |   | 3,576 |   |
| Leasehold improvements                    |   |              | 1,186  |   |   |   | 1,005 |   |
| Furniture, fixtures and equipment         |   |              | 3,315  |   |   |   | 2,428 |   |
|                                      |   |              |   |   |   |   |   |   |
|                                      |   |              | 14,486 |   |   |   | 7,899 |   |
| Accumulated depreciation and amortization |   |              | (3,127 | ) |   |   | (2,540 | ) |
|                                      |   |              |   |   |   |   |   |   |
|                                      |   | $                 | 11,359 |   |   | $ | 5,359 |   |

----

----

| 2011       |   | $      | 959    |   |
|------------|--------|--------|--------|--------|
| 2012       |   |   | 980    |   |
| 2013       |   |   | 668    |   |
| 2014       |   |   | 630    |   |
| 2015       |   |   | 342    |   |
| Thereafter |   |   | 2,530  |   |
|       |   |   |   |   |
|       |   | $      | 6,109  |   |

|       |   | December 31, |   |
|------------|--------|-------------------|--------|
|       |   | 2010              |   |   | 2009 |   |
|       |   | (In Thousands)    |   |
|       |   |              |   |   |   |   |
| Loans      |   | $                 | 4,340  |   |   | $ | 2,679 |   |
| Securities |   |              | 863    |   |   |   | 1,120 |   |
|       |   |              |   |   |   |   |   |   |
|       |   | $                 | 5,203  |   |   | $ | 3,799 |   |

----

----

|                    |   | December 31, |    |
|-------------------------|--------|-------------------|---------|
|                    |   | 2010              |    |   | 2009 |   |
|                    |   | (In Thousands)    |    |
|                    |   |              |    |   |   |   |
| Demand:                 |   |              |    |   |   |   |
| Non-interest bearing    |   | $                 | 69,471  |   |   | $ | 37,082 |   |
| NOW                     |   |              | 80,775  |   |   |   | 34,270 |   |
| Money market            |   |              | 55,676  |   |   |   | 33,656 |   |
|                    |   |              | 205,922 |   |   |   | 105,008 |   |
|                    |   |              |    |   |   |   |   |   |
| Savings and club        |   |              | 245,951 |   |   |   | 108,170 |   |
| Certificates of deposit |   |              | 434,415 |   |   |   | 250,560 |   |
|                    |   |              |    |   |   |   |   |   |
|                    |   | $                 | 886,288 |   |   | $ | 463,738 |   |

|       |   | Amount |    |
|------------|--------|--------|---------|
|       |   |   |    |
| 2011       |   | $      | 333,853 |   |
| 2012       |   |   | 44,684  |   |
| 2013       |   |   | 15,155  |   |
| 2014       |   |   | 26,293  |   |
| 2015       |   |   | 14,188  |   |
| Thereafter |   |   | 242     |   |
|       |   | $      | 434,415 |   |

----

----

|                                                                                                                                                                           |   | December 31, |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|
|                                                                                                                                                                           |   | 2010              |    |   | 2009 |   |
|                                                                                                                                                                           |   | (In Thousands)    |    |
|                                                                                                                                                                           |   |              |    |   |   |   |
| Long-term debt:                                                                                                                                                                |   |              |    |   |   |   |
| Federal Home Loan Bank of New York (“FHLB”) Fixed Rate Repurchase Agreements:                                                                                      |   |              |    |   |   |   |
| 4.50% maturing May 22, 2016                                                                                                                                                    |   | $                 | 10,000  |   |   | $ | 10,000 |   |
| 4.30% maturing August 16, 2016                                                                                                                                                 |   |              | 20,000  |   |   |   | 20,000 |   |
| 4.17% maturing August 31, 2016                                                                                                                                                 |   |              | 25,000  |   |   |   | 25,000 |   |
| 4.76% maturing June 18, 2017                                                                                                                                                   |   |              | 20,000  |   |   |   | 20,000 |   |
| 4.30% maturing July 30, 2017                                                                                                                                                   |   |              | 15,000  |   |   |   | 15,000 |   |
| 4.08% maturing July 30, 2017                                                                                                                                                   |   |              | 20,000  |   |   |   | 20,000 |   |
| Trust preferred floating rate junior subordinated debenture maturing June 17, 2034; interest rate adjusts quarterly to LIBOR plus 2.65% (2.95% at December 31, 2010) |   |              | 4,124   |   |   |   | 4,124 |   |
|                                                                                                                                                                           |   |              |    |   |   |   |   |   |
|                                                                                                                                                                           |   | $                 | 114,124 |   |   | $ | 114,124 |   |

|                                        |   | December 31,   |   |
|---------------------------------------------|--------|----------------|--------|
|                                        |   | 2010           |   |   | 2009 |   |   | 2008 |   |
|                                        |   | (In Thousands) |   |
|                                        |   |           |   |   |   |   |   |   |   |
| Average balance outstanding during the year |   | $              | -      |   |   | $ | 38 |   |   | $ | 4,796 |   |
| Highest month-end balance during the year   |   | $              | -      |   |   | $ | - |   |   | $ | 20,500 |   |
| Average interest rate during the year       |   | $              | -      |   |   |   | 0.51 | % |   |   | 1.23 | % |
| Weighted average interest rate at year-end  |   | $              | -      |   |   | $ | - |   |   |   | 0.44 | % |

----

----

|                                     |   | Actual                 |    |   | For Capital Adequacy Purposes |   |   | To be Well Capitalized under Prompt Corrective Action Provisions |   |
|------------------------------------------|--------|------------------------|---------|--------|-------------------------------|--------|--------|------------------------------------------------------------------|--------|
|                                     |   | Amount                 |    |   | Ratio                         |   |   | Amount                                                           |   |   | Ratio |   |   | Amount |   |   | Ratio |   |
|                                     |   | (Dollars in Thousands) |    |
|                                     |   |                   |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2010:            |   |                   |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |
| Total capital (to risk-weighted assets)  |   | $                      | 109,032 |   |                          |   | 15.89  | %                                                                |   | $ | >54,882 |   |   |   | >8.00 | % |   | $ | >68,602 |   |   |   | >10.00 | % |
| Tier 1 capital (to risk-weighted assets) |   |                   | 102,541 |   |                          |   | 14.95  |                                                             |   |   | >27,441 |   |   |   | >4.00 |   |   |   | >41,161 |   |   |   | > 6.00 |   |
| Tier 1 capital (to average assets)       |   |                   | 102,541 |   |                          |   | 9.16   |                                                             |   |   | >44,761 |   |   |   | >4.00 |   |   |   | >55,952 |   |   |   | > 5.00 |   |
|                                     |   |                   |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2009:            |   |                   |    |   |                          |   |   |                                                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total capital (to risk-weighted assets)  |   | $                      | 59,855  |   |                          |   | 14.37  | %                                                                |   | $ | >33,331 |   |   |   | >8.00 | % |   | $ | >41,664 |   |   |   | >10.00 | % |
| Tier 1 capital (to risk-weighted assets) |   |                   | 54,637  |   |                          |   | 13.11  |                                                             |   |   | >16,666 |   |   |   | >4.00 |   |   |   | >24,998 |   |   |   | > 6.00 |   |
| Tier 1 capital (to average assets)       |   |                   | 54,637  |   |                          |   | 8.68   |                                                             |   |   | >25,169 |   |   |   | >4.00 |   |   |   | >31,461 |   |   |   | > 5.00 |   |

----

----

| Change in Benefit Obligation:           |   | December 31, 2010 |   |
|-----------------------------------------|--------|-------------------|--------|
|                                    |   | (In thousands)    |   |
| Benefit obligation, at date of merger   |   | $                 | 8,673  |   |
|                                    |   |              |   |   |
| Interest cost                           |   |              | 245    |   |
| Actuarial loss                          |   |              | 369    |   |
| Benefits paid                           |   |              | (253   | ) |
| Settlements                             |   |              | (311   | ) |
|                                    |   |              |   |   |
| Benefit obligation, ending              |   | $                 | 8,723  |   |
|                                    |   |              |   |   |
| Change in Plan Assets:                  |   |              |   |   |
|                                    |   |              |   |   |
| Fair value of assets, at date of merger |   | $                 | 4,598  |   |
|                                    |   |              |   |   |
| Actual return on plan assets            |   |              | 561    |   |
| Employer contributions                  |   |              | 151    |   |
| Benefits paid                           |   |              | (253   | ) |
| Settlements                             |   |              | (311   | ) |
|                                    |   |              |   |   |
| Fair value of assets, ending            |   | $                 | 4,746  |   |

----

----

| Reconciliation of Funded Status:                                                |   |  December 31, 2010 |   |
|---------------------------------------------------------------------------------|--------|-------------------------|--------|
|                                                                            |   |  (In thousands)    |   |
| Accumulated benefit obligation                                                  |   | $                       | 8,723  |   |
|                                                                            |   |                    |   |   |
| Projected benefit obligation                                                    |   | $                       | 8,723  |   |
| Fair value of assets                                                            |   | $                       | (4,746 | ) |
|                                                                            |   |                    |   |   |
| Funded status, included in other liabilities                                    |   | $                       | (3,977 | ) |
|                                                                            |   |                    |   |   |
|                                                                            |   |                    |   |   |
| Valuation assumptions used to determine benefit obligation at period end:       |   |                    |   |   |
| Discount rate                                                                   |   |                    | 5.540  | % |
| Salary increase rate                                                            |   |                    | N/A    |   |
|                                                                            |   |                    |   |   |
|                                                                            |   |                    |   |   |
|                                                                            |   | Year Ended              |   |
| Net Periodic Pension Expense                                                    |   | December 31, 2010       |   |
|                                                                            |   | (In thousands)          |   |
| Interest cost                                                                   |   | $                       | 245    |   |
| Expected return on assets                                                       |   |                    | (181   | ) |
| Net Periodic Pension Expense                                                    |   | $                       | 64     |   |
|                                                                            |   |                    |   |   |
| Valuation assumptions used to determine net periodic benefit cost for the year: |   |                    |   |   |
|                                                                            |   |                    |   |   |
| Discount rate                                                                   |   |                    | 5.500  | % |
| Long term rate of return on plan assets                                         |   |                    | 8.000  | % |
| Salary increase rate                                                            |   |                    | 3.500  | % |

----

----

|   Asset Allocation Parameters by Asset Class |
|---------------------------------------------------|
|                                              | Minimum | Target | Maximum |
|                                              |   |   |   |
| Equity                                            |   |   |   |
| Large-Cap U.S.                                    |   | 26% |   |
| Mid/Small-Cap U.S.                                |   | 12% |   |
| Non-U.S.                                          |   | 12% |   |
| Total-Equity                                      | 40% | 50% | 60% |
|                                              |   |   |   |
| Fixed Income                                      |   |   |   |
| Certificates of Deposit                           |   | 25% |   |
| Long Duration                                     |   | 23% |   |
| Money Market                                      |   | 2% |   |
| Total-Fixed Income                                | 40% | 50% | 60% |
|                                              |   |   |   |

----

----

| Asset Category                  |   | Total  |      |   | (Level 1) |   |      | (Level 2) |   |   | (Level 3) |   |
|---------------------------------|--------|--------|-----------|--------|-----------|--------|-----------|-----------|--------|--------|-----------|--------|
|                            |   |   |      |   |      |   |      |      |   |   |      |   |
| Mutual funds-Equity             |   |   |      |   |      |   |      |      |   |   |      |   |
| Large-Cap Value (a)             |   | $      | 266,771   |   |      | $      | 266,771   |      |   | $      | -         |   |   | $ | - |   |
| Large-Cap Core (b)              |   |   | 316,443   |   |      |   | 316,443   |      |   |   | -         |   |   |   | - |   |
| Small-Cap Core (c)              |   |   | 162,604   |   |      |   | 162,604   |      |   |   | -         |   |   |   | - |   |
|                            |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Mutual Funds-Fixed Income       |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Long Term Bond (d)              |   |   | 378,611   |   |      |   | 378,611   |      |   |   | -         |   |   |   | - |   |
|                            |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Common/Collective Trusts-Equity |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Large-Cap Value (e)             |   |   | 283,661   |   |      |   | -         |      |   |   | 283,661   |   |   |   | - |   |
| Large-Cap Growth (f)            |   |   | 528,288   |   |      |   | -         |      |   |   | 528,288   |   |   |   | - |   |
| International Core (g)          |   |   | 655,879   |   |      |   | -         |      |   |   | 655,879   |   |   |   | - |   |
|                            |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Exchange Traded Funds           |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Fixed Income-ETF (h)            |   |   | 355,209   |   |      |   | 355,209   |      |   |   | -         |   |   |   | - |   |
|                            |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Stock                           |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| BCB Common Stock                |   |   | 480,200   |   |      |   | 480,200   |      |   |   | -         |   |   |   | - |   |
|                            |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Cash Equivalents                |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Money Market                    |   |   | 41,853    |   |      |   | 41,853    |      |   |   | -         |   |   |   | - |   |
| BCB Bank CD                     |   |   | 1,276,062 |   |      |   | -         |      |   |   | 1,276,062 |   |   |   | - |   |
|                            |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
|                            |   |   |      |   |      |   |      |      |   |   |      |   |   |   |   |   |
| Total                           |   | $      | 4,745,581 |   |      | $      | 2,001,691 |      |   | $      | 2,743,890 |   |   | $ | - |   |

----

----

|   | (a) | This category consists of a mutual fund holding 100-160 stocks, designed to track and outperform the Russell 1000 Value Index. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------|

|   | (b) | This category contains stocks of the S&P Index. The stocks are maintained in approximately the same weightings as the index. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | This category consists of 400 or more small and micro-cap companies, with as much as 25% invested in non-U.S. equities. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (d) | This category consists of a bond fund which tracks the Barclays Capital U.S. 20+ Year Treasury Bond index. The fund generally invests at least 90% of assets in the bonds of the underlying index and at least 95% of assets in U.S. government. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (e) | This category consists of investments whose sector and industry exposures are maintained within a narrow band around the Russell 1000 index. The portfolio holds approximately 150 stocks. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (f) | This category consists of a portfolio of between 45 and 65 stocks that will typically overweight technology and health care. |
|--------|-----|------------------------------------------------------------------------------------------------------------------------------|

|   | (g) | This category consists of a portfolio of over 200 stocks in non-U.S. domiciled companies, with up to 35% invested in emerging markets. |
|--------|-----|----------------------------------------------------------------------------------------------------------------------------------------|

|   | (h) | This category invests in a variety of high-quality and, to a lesser extent, medium-quality fixed income securities, at least 80% of which will be intermediate-and long-term investment-grade securities. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2011      |   | $      | 509,752   |   |
|-----------|--------|--------|-----------|--------|
| 2012      |   |   | 526,449   |   |
| 2013      |   |   | 550,710   |   |
| 2014      |   |   | 564,842   |   |
| 2015      |   |   | 594,537   |   |
| 2016-2020 |   |   | 2,995,626 |   |
|      |   | $      | 5,741,916 |   |

----

----

| Change in Benefit Obligation:                                             |   | December 31, 2010 |   |
|---------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                      |   | (In thousands)    |   |
| Benefit obligation, at date of merger                                     |   | $                 | 680    |   |
|                                                                      |   |              |   |   |
| Interest Cost                                                             |   |              | 20     |   |
| Actuarial loss                                                            |   |              | 4      |   |
| Benefits paid                                                             |   |              | (108   | ) |
|                                                                      |   |              |   |   |
| Benefit obligation, ending                                                |   | $                 | 596    |   |
|                                                                      |   |              |   |   |
| Change in Plan Assets                                                     |   |              |   |   |
| Fair value of assets, at date of merger,                                  |   | $                 | -      |   |
| Employer contributions                                                    |   |              | 108    |   |
| Benefits paid                                                             |   |              | (108   | ) |
|                                                                      |   |              |   |   |
| Fair value of assets, ending                                              |   | $                 | -      |   |
|                                                                      |   |              |   |   |
| Reconciliation of Funded Status:                                          |   |              |   |   |
| Accumulated benefit obligation                                            |   | $                 | 596    |   |
| Projected benefit obligation                                              |   | $                 | 596    |   |
| Fair value of assets                                                      |   |              | -      |   |
| Funded status, included in other liabilities                              |   | $                 | 596    |   |
|                                                                      |   |              |   |   |
| Valuation assumptions used to determine benefit obligation at period end: |   |              |   |   |
|                                                                      |   |              |   |   |
| Discount rate                                                             |   |              | 5.540  | % |
| Salary Increase Rate                                                      |   |              | 3.500  | % |

----

----

| Net Periodic SERP Expense                                                       |   | Year EndedDecember 31, 2010 |   |
|---------------------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                                            |   | (In thousands)              |   |
| Interest Cost                                                                   |   | $                           | 20     |   |
|                                                                            |   |                        |   |   |
| Net Periodic SERP Cost                                                          |   |                        |   |   |
|                                                                            |   | $                           | 20     |   |
|                                                                            |   |                        |   |   |
| Valuation assumptions used to determine net periodic benefit cost for the year: |   |                        |   |   |
| Discount rate                                                                   |   |                        | 5.50   | % |
| Rate of increase in compensation                                                |   |                        | 3.50   |   |
| Amortization period                                                             |   |                        | 5.00   |   |

| 2011      |   | $      | 138,575 |   |
|-----------|--------|--------|---------|--------|
| 2012      |   |   | 73,647  |   |
| 2013      |   |   | 61,647  |   |
| 2014      |   |   | 61,647  |   |
| 2015      |   |   | 61,647  |   |
| 2016-2019 |   |   | 278,235 |   |
|      |   |   |    |   |
|      |   | $      | 675,398 |   |

----

----

|                                   |   | Number of Option Shares |    |   | Range of Exercise Prices |   |        | Weighted Average Exercise Price |   |
|----------------------------------------|--------|-------------------------|---------|--------|--------------------------|--------|-------------|---------------------------------|--------|
|                                   |   |                    |    |   |                     |   |        |                            |   |
| Outstanding at December 31, 2008       |   |                    | 295,339 |   |                     | $      | 5.29-$15.65 |                            |   | $ | 10.19 |   |
| Options forfeited                      |   |                    | (3,906  | )      |                     |   | 11.84       |                            |   |   | 11.84 |   |
| Options exercised                      |   |                    | (11,933 | )      |                     |   | 5.29        |                            |   |   | 5.29 |   |
|                                   |   |                    |    |   |                     |   |        |                            |   |   |   |   |
|  Outstanding at December 31, 2009 |   |                    | 279,500 |   |                     |   | 5.29-15.65  |                            |   |   | 10.38 |   |
|                                   |   |                    |    |   |                     |   |        |                            |   |   |   |   |
| Options forfeited                      |   |                    | (4,210  | )      |                     |   | 5.29-11.84  |                            |   |   | 7.72 |   |
| Options exercised                      |   |                    | (13,677 | )      |                     |   | 5.29        |                            |   |   | 5.29 |   |
| Options added through merger           |   |                    | 28,000  |   |                     | $      | 18.41-29.25 |                            |   |   | 24.22 |   |
|                                   |   |                    |    |   |                     |   |        |                            |   |   |   |   |
| Outstanding at December 31, 2010       |   |                    | 289,613 |   |                     | $      | 5.29-$29.25 |                            |   | $ | 12.00 |   |

----

----

|                         |   | Years Ended December 31, |   |
|------------------------------|--------|-------------------------------|--------|
|                         |   | 2010                          |   |   | 2009 |   |   | 2008 |   |
|                         |   | (In Thousands)                |   |
|                         |   |                          |   |   |   |   |   |   |   |
| Current income tax expense:  |   |                          |   |   |   |   |   |   |   |
| Federal                      |   | $                             | 1,982  |   |   | $ | 2,730 |   |   | $ | 3,097 |   |
| State                        |   |                          | (136   | ) |   |   | 489 |   |   |   | 382 |   |
|                         |   |                          |   |   |   |   |   |   |   |   |   |   |
|                         |   |                          | 1,846  |   |   |   | 3,219 |   |   |   | 3,479 |   |
|                         |   |                          |   |   |   |   |   |   |   |   |   |   |
| Deferred income tax benefit: |   |                          |   |   |   |   |   |   |   |   |   |   |
| Federal                      |   |                          | 5      |   |   |   | (467 | ) |   |   | (1,324 | ) |
| State                        |   |                          | (346   | ) |   |   | (131 | ) |   |   | (335 | ) |
|                         |   |                          |   |   |   |   |   |   |   |   |   |   |
|                         |   |                          | (341   | ) |   |   | (598 | ) |   |   | (1,659 | ) |
| Total Income Taxes           |   | $                             | 1,505  |   |   | $ | 2,621 |   |   | $ | 1,820 |   |

|                                                    |   | December 31, |   |
|---------------------------------------------------------|--------|-------------------|--------|
|                                                    |   | 2010              |   | 2009 |   |
|                                                    |   | (In Thousands)    |   |
|                                                    |   |              |   |   |   |   |
| Deferred income tax assets:                             |   |              |   |   |   |   |
| Allowance for loan losses                               |   | $                 | 3,362  |   |   | $ | 2,654 |   |
| Other than temporary impairment on security             |   |              | 1,164  |   |   |   | 1,164 |   |
| Benefit plans                                           |   |              | 1,829  |   |   |   | - |   |
| Valuation adjustment on loans receivable acquired       |   |              | 1,993  |   |   |   | - |   |
| Other                                                   |   |              | 340    |   |   |   | 42 |   |
|                                                    |   |              |   |   |   |   |   |   |
|                                                    |   |              | 8,688  |   |   |   | 3,860 |   |
|                                                    |   |              |   |   |   |   |   |   |
| Deferred income tax liabilities:                        |   |              |   |   |   |   |   |   |
| Benefit Plan-accumulated other comprehensive income     |   |              | 3      |   |   |   | - |   |
| Depreciation                                            |   |              | 233    |   |   |   | 233 |   |
| Unrealized gain on securities available for sale        |   |              | -      |   |   |   | 9 |   |
| Valuation adjustment on securities acquired             |   |              | 1,288  |   |   |   | - |   |
| Valuation adjustment on premises and equipment acquired |   |              | 1,379  |   |   |   | - |   |
|                                                    |   |              | 2,903  |   |   |   | 242 |   |
|                                                    |   |              |   |   |   |   |   |   |
| Net Deferred Tax Asset                                  |   | $                 | 5,785  |   |   | $ | 3,618 |   |

----

----

|                                                        |   | Years Ended December 31, |   |
|-------------------------------------------------------------|--------|-------------------------------|--------|
|                                                        |   | 2010                          |   |   | 2009 |   |   | 2008 |   |
|                                                        |   | (In Thousands)                |   |
|                                                        |   |                          |   |   |   |   |   |   |   |
| Federal income tax expense at statutory rate                |   | $                             | 5,382  |   |   | $ | 2,165 |   |   | $ | 1,799 |   |
| Increases (reductions) in income taxes resultingfrom:       |   |                          |   |   |   |   |   |   |   |   |   |   |
| State income tax (benefit), net of federalincome tax effect |   |                          | (318   | ) |   |   | 236 |   |   |   | 31 |   |
| Merger related items                                        |   |                          | (4,066 | ) |   |   | 208 |   |   |   | - |   |
| Other items, net                                            |   |                          | 507    |   |   |   | 12 |   |   |   | (10 | ) |
|                                                        |   |                          |   |   |   |   |   |   |   |   |   |   |
| Effective Income Tax                                        |   | $                             | 1,505  |   |   | $ | 2,621 |   |   | $ | 1,820 |   |
|                                                        |   |                          |   |   |   |   |   |   |   |   |   |   |
| Effective Income Tax Rate                                   |   |                          | 9.5    | % |   |   | 41.2 | % |   |   | 34.4 | % |

|                          |   | December 31, |   |
|-------------------------------|--------|-------------------|--------|
|                          |   | 2010              |   |   | 2009 |   |
|                          |   | (In Thousands)    |   |
|                          |   |              |   |   |   |   |
| Loan origination              |   | $                 | 3,038  |   |   | $ | 7,171 |   |
| Standby letters of credit     |   |              | 2,018  |   |   |   | 471 |   |
| Construction loans in process |   |              | 5,180  |   |   |   | 5,415 |   |
| Unused lines of credit        |   |              | 33,747 |   |   |   | 11,905 |   |
|                          |   |              |   |   |   |   |   |   |
|                          |   | $                 | 43,983 |   |   | $ | 24,962 |   |

----

----

|   | Level 1: | Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities. |
|--------|----------|-------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 2: | Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly, for substantially the full term of the asset or liability. |
|--------|----------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | Level 3: | Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported with little or no market activity). |
|--------|----------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

----

| Description                      |   | Total          |   |   | (Level 1)Quoted Prices in Active Markets for Identical Assets |   |   | (Level 2)SignificantOtherObservableInputs |   |   | (Level 3)SignificantUnobservableInputs |   |
|----------------------------------|--------|----------------|--------|--------|---------------------------------------------------------------|--------|--------|-------------------------------------------|--------|--------|----------------------------------------|--------|
|                             |   | (In Thousands) |   |
|                             |   |           |   |
| Securities AFS December 31, 2010 |   | $              | 1,098  |   |                                                          | $      | 1,098  |                                      |   | $      | -                                      |   |   | $ | - |   |
| Securities AFS December 31, 2009 |   | $              | 1,346  |   |                                                          | $      | 1,346  |                                      |   | $      | -                                      |   |   | $ | - |   |

| December 31, 2010 |   | Total          |   |   | (Level 1) Quoted Prices in Active Markets for Identical Assets |   |   | (Level 2) Significant Other Observable Inputs |   |   | (Level 3)SignificantUnobservable Inputs |   |
|-------------------|--------|----------------|--------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-----------------------------------------|--------|
|              |   | (In Thousands) |   |
|              |   |           |   |
| Impaired loans    |   | $              | 17,617 |   |                                                           | $      | 17,617 |                                          |   | $      | -                                       |   |   | $ | 17,617 |   |
| Real estate owned |   | $              | 513    |   |                                                           | $      | -      |                                          |   | $      | -                                       |   |   | $ | 513 |   |

| December 31, 2009 |   | Total          |   |   | (Level 1) Quoted Prices in Active Markets for Identical Assets |   |   | (Level 2) Significant Other Observable Inputs |   |   | (Level 3)SignificantUnobservable Inputs |   |
|-------------------|--------|----------------|--------|--------|----------------------------------------------------------------|--------|--------|-----------------------------------------------|--------|--------|-----------------------------------------|--------|
|              |   | (In Thousands) |   |
|              |   |           |   |   |                                                           |   |   |                                          |   |   |                                    |   |
| Impaired loans    |   | $              | 5,657  |   |                                                           | $      | -      |                                          |   | $      | -                                       |   |   | $ | 5,657 |   |
| Real estate owned |   | $              | 1,270  |   |                                                           | $      | -      |                                          |   | $      | -                                       |   |   | $ | 1,270 |   |

----

----

----

----

|                          |   | December 31,   |
|-------------------------------|--------|----------------|
|                          |   | 2010           |   |   | 2009 |
|                          |   | Carrying Value |   |   | Fair Value |   |   | Carrying Value |   | Fair Value |
|                          |   | (In Thousands) |
|                          |   |           |   |   |   |   |   |   |   |   |
| Financial assets:             |   |           |   |   |   |   |   |   |   |   |
| Cash and cash equivalents     |   | $              | 121,127 |   |   | $ | 121,127 |   |   | $ | 67,347 |   | $ | 67,347 |
| Securities available for sale |   |           | 1,098 |   |   |   | 1,098 |   |   |   | 1,346 |   |   | 1,346 |
| Securities held to maturity   |   |           | 165,572 |   |   |   | 166,785 |   |   |   | 132,644 |   |   | 133,050 |
| Loans held for sale           |   |           | 5,572 |   |   |   | 5,633 |   |   |   | 4,275 |   |   | 4,275 |
| Loans receivable              |   |           | 773,101 |   |   |   | 779,858 |   |   |   | 401,872 |   |   | 404,399 |
| FHLB of New York stock        |   |           | 6,723 |   |   |   | 6,723 |   |   |   | 5,714 |   |   | 5,714 |
| Interest receivable           |   |           | 5,203 |   |   |   | 5,203 |   |   |   | 3,799 |   |   | 3,799 |
|                          |   |           |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:        |   |           |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                      |   |           | 886,288 |   |   |   | 890,402 |   |   |   | 463,738 |   |   | 467,371 |
| Long-term debt                |   |           | 114,124 |   |   |   | 126,895 |   |   |   | 114,124 |   |   | 136,099 |
| Interest payable              |   |           | 787 |   |   |   | 787 |   |   |   | 847 |   |   | 847 |

----

----

| Note 17- Comprehensive Income (Loss)                                                                      |
|-----------------------------------------------------------------------------------------------------------|
|                                                                                                      |
|                                                                                                      |
| The components of accumulated other comprehensive income included in stockholders' equity are as follows: |

|                                                 |   | At December 31,      |   |
|------------------------------------------------------|--------|----------------------|--------|
|                                                 |   | 2010                 |   |   | 2009 |   |
|                                                 |   | (In thousands)  |   |
| Net unrealized gain on securities available for sale |   | $                    | 1      |   |   | $ | 22 |   |
| Tax effect                                           |   |                 | -      |   |   |   | (9 | ) |
| Net of tax amount                                    |   |                 | 1      |   |   |   | 13 |   |
|                                                 |   |                 |   |   |   |   |   |   |
| Benefit plan adjustments                             |   |                 | 7      |   |   |   | - |   |
| Tax effect                                           |   |                 | (3     | ) |   |   | - |   |
| Net of tax amount                                    |   |                 | 4      |   |   |   | - |   |
|                                                 |   |                 |   |   |   |   |   |   |
| Accumulated other comprehensive income               |   | $                    | 5      |   |   | $ | 13 |   |

----

----

|                                                                |   | Years Ended December 31, |   |
|---------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                                |   | (In thousands)           |   |
| Unrealized holding (losses) gains on securities available for sale: |   |                     |   |   |   |   |   |   |   |
| Unrealized holding (losses) gains arising during theyear            |   | $                        | (21    | ) |   | $ | 231 |   |   | $ | (3,168 | ) |
|                                                                |   |                     |   |   |   |   |   |   |   |   |   |   |
| Loss on impairment of securities available for sale:                |   |                     |   |   |   |   |   |   |   |   |   |   |
| Realized losses arising during the year                             |   |                     | -      |   |   |   | - |   |   |   | 2,915 |   |
|                                                                |   |                     |   |   |   |   |   |   |   |   |   |   |
| Defined benefit pension plan and SERP Plan:                         |   |                     |   |   |   |   |   |   |   |   |   |   |
| Pension Gains                                                       |   |                     | 11     |   |   |   | - |   |   |   | - |   |
| SERP Losses                                                         |   |                     | (4     | ) |   |   | - |   |   |   | - |   |
| Net change in benefit plans accrued expense                         |   |                     | 7      |   |   |   | - |   |   |   | - |   |
|                                                                |   |                     |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss) before taxes                      |   |                     | (14    | ) |   |   | 231 |   |   |   | (253 | ) |
| Tax effect                                                          |   |                     | 6      |   |   |   | (93 | ) |   |   | 102 |   |
|                                                                |   |                     |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive income (loss)                                   |   | $                        | (8     | ) |   | $ | 138 |   |   | $ | (151 | ) |

----

----

| STATEMENTS OF FINANCIAL CONDITION           |   |
|--------------------------------------------------|--------|
|                                             |   | December 31, |   |
|                                             |   | 2010 |   |   | 2009 |   |
| Assets                                           |   | (In Thousands) |   |
| Cash and due from banks                          |   | $ | 355 |   |   | $ | 395 |   |
| Securities available for sale                    |   |   | - |   |   |   | 237 |   |
| Investment in subsidiaries                       |   |   | 102,546 |   |   |   | 54,641 |   |
| Restricted common stock                          |   |   | 124 |   |   |   | 124 |   |
| Other assets                                     |   |   | 131 |   |   |   | 244 |   |
|                                             |   |   |   |   |   |   |   |   |
| Total Assets                                     |   | $ | 103,156 |   |   | $ | 55,641 |   |
|                                             |   |   |   |   |   |   |   |   |
| Liabilities and Stockholders’ Equity       |   |   |   |   |   |   |   |   |
| Liabilities                                      |   |   |   |   |   |   |   |   |
| Long-term debt                                   |   | $ | 4,124 |   |   | $ | 4,124 |   |
| Other liabilities                                |   |   | 58 |   |   |   | 126 |   |
|                                             |   |   |   |   |   |   |   |   |
| Total Liabilities                                |   |   | 4,182 |   |   |   | 4,250 |   |
|                                             |   |   |   |   |   |   |   |   |
| Stockholders’ equity                       |   |   |   |   |   |   |   |   |
| Common stock                                     |   |   | 649 |   |   |   | 332 |   |
| Paid-in capital                                  |   |   | 85,327 |   |   |   | 46,926 |   |
| Treasury stock                                   |   |   | (10,760 | ) |   |   | (8,719 | ) |
| Retained earnings                                |   |   | 23,753 |   |   |   | 12,839 |   |
| Accumulated other comprehensive income           |   |   | 5 |   |   |   | 13 |   |
|                                             |   |   |   |   |   |   |   |   |
| Total Stockholders’ Equity                 |   |   | 98,974 |   |   |   | 51,391 |   |
|                                             |   |   |   |   |   |   |   |   |
| Total Liabilities and Stockholders’ Equity |   | $ | 103,156 |   |   | $ | 55,641 |   |

----

----

| STATEMENTS OF INCOME                                                                   |   |
|---------------------------------------------------------------------------------------------|--------|
|                                                                                        |   | Years Ended December 31, |   |
|                                                                                        |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                                                        |   | (In Thousands) |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |
| Dividends from subsidiary                                                                   |   | $ | 5,334 |   |   | $ | 2,547 |   |   | $ | - |   |
| Interest income                                                                             |   |   | - |   |   |   | - |   |   |   | 3 |   |
| Total Income                                                                                |   |   | 5,334 |   |   |   | 2,547 |   |   |   | 3 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense, borrowed money                                                            |   |   | 122 |   |   |   | 146 |   |   |   | 238 |   |
| Other                                                                                       |   |   | 60 |   |   |   | - |   |   |   | - |   |
| Total Expense                                                                               |   |   | 182 |   |   |   | 146 |   |   |   | 238 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) before Income Tax Benefit and Equity inUndistributed Earnings of Subsidiaries |   |   | 5,152 |   |   |   | 2,401 |   |   |   | (235 | ) |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Income tax expense (benefit)                                                                |   |   | 120 |   |   |   | (17 | ) |   |   | 97 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (Loss) before Equity in Undistributed Earningsof Subsidiaries                        |   |   | 5,032 |   |   |   | 2,418 |   |   |   | (138 | ) |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in undistributed earnings of subsidiaries                                            |   |   | 9,294 |   |   |   | 1,330 |   |   |   | 3,610 |   |
|                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Income                                                                                  |   | $ | 14,326 |   |   | $ | 3,748 |   |   | $ | 3,472 |   |

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| STATEMENTS OF CASH FLOW                                                               |   |
|--------------------------------------------------------------------------------------------|--------|
|                                                                                       |   | Years Ended December 31, |   |
|                                                                                       |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                                                       |   | (In Thousands) |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |
| Cash Flows from Operating Activities                                                       |   |   |   |   |   |   |   |   |   |
| Net income                                                                                 |   | $ | 14,326 |   |   | $ | 3,748 |   |   | $ | 3,472 |   |
| Adjustments to reconcile net income to net cash provided by(used in) operating activities: |   |   |   |   |   |   |   |   |   |   |   |   |
| Equity in undistributed (earnings) losses of  subsidiaries                       |   |   | (9,294 | ) |   |   | (1,330 | ) |   |   | (3,610 | ) |
| Decrease (increase) in other assets                                                        |   |   | 171 |   |   |   | (5 | ) |   |   | (158 | ) |
| (Decrease) increase in other liabilities                                                   |   |   | (129 | ) |   |   | 96 |   |   |   | 16 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Cash Provided By (Used in) Operating Activities                                        |   |   | 5,074 |   |   |   | 2,509 |   |   |   | (280 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows from Investing Activities                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash acquired in acquisition                                                               |   |   | 31 |   |   |   | - |   |   |   | - |   |
| Sale/(Purchases) of securities available for sale                                          |   |   | - |   |   |   | (227 | ) |   |   | - |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Cash Provided By (Used in) Investing Activities                                        |   |   | 31 |   |   |   | (227 | ) |   |   | - |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash Flows from Financing Activities                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Proceeds from issuance of common stock                                                     |   |   | 73 |   |   |   | 63 |   |   |   | 925 |   |
| Tax benefit from exercise of stock options                                                 |   |   | - |   |   |   | - |   |   |   | 150 |   |
| Cash dividends paid                                                                        |   |   | (3,412 | ) |   |   | (2,234 | ) |   |   | (1,896 | ) |
| Purchase of treasury stock                                                                 |   |   | (1,806 | ) |   |   | (39 | ) |   |   | (1,295 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Cash (Used in) Financing Activities                                                    |   |   | (5,145 | ) |   |   | (2,210 | ) |   |   | (2,116 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Increase (Decrease) in Cash and Cash Equivalents                                       |   |   | (40 | ) |   |   | 72 |   |   |   | (2,396 | ) |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents - Beginning                                                      |   |   | 395 |   |   |   | 323 |   |   |   | 2,719 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and Cash Equivalents - Ending                                                         |   | $ | 355 |   |   | $ | 395 |   |   | $ | 323 |   |
|                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-Cash Items:                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |
| Transfer of securities available for sale to treasury stock                                |   | $ | 235 |   |   | $ | - |   |   | $ | - |   |

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| Consideration paid                                                                        |   |   |     |
|-------------------------------------------------------------------------------------------|--------|--------|----------|
| BCB Community Bancorp, Inc. common stock issued                                           |   | $      | 38,645   |   |
|                                                                                      |   |   |     |   |
| Recognized amounts of identifiable assets acquired and liabilities assumed, at fair value |   |   |     |   |
| Cash and cash equivalents                                                                 |   | $      | 22,979   |   |
| Investment securities                                                                     |   |   | 86,770   |   |
| Loans receivable                                                                          |   |   | 412,142  |   |
| Federal Home Loan Bank of New York stock                                                  |   |   | 2,878    |   |
| Property held for sale                                                                    |   |   | 1,017    |   |
| Premises and equipment                                                                    |   |   | 5,938    |   |
| Other real estate owned                                                                   |   |   | 789      |   |
| Interest receivable                                                                       |   |   | 1,905    |   |
| Deferred income taxes                                                                     |   |   | 1,820    |   |
| Other assets                                                                              |   |   | 1,264    |   |
| Deposits                                                                                  |   |   | (435,810 | ) |
| Borrowings                                                                                |   |   | (43,815  | ) |
| Other liabilities                                                                         |   |   | (6,650   | ) |
|                                                                                      |   |   |     |   |
| Total identifiable net assets                                                             |   |   | 51,227   |   |
|                                                                                      |   |   |     |   |
| Gain on bargain purchase recognized in non-interest income                                |   | $      | 12,582   |   |

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| Contractually required principal and interest at acquisition                  |   | $      | 649,871 |   |
|-------------------------------------------------------------------------------|--------|--------|---------|--------|
| Contractual cash flows not expected to be collected (nonaccretabale discount) |   |   | (7,924  | )      |
| Expected cash flows at acquisition                                            |   |   | 641,947 |   |
| Interest component of expected cash flows (accretable discount)               |   |   | 229,805 |   |
|                                                                          |   | $      | 412,142 |   |
| Fair value of acquired loans                                                  |   |   |    |   |

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|                         |   | Pro forma                                 |   |
|------------------------------|--------|-------------------------------------------|--------|
|                         |   | Twelve months ended                       |   |
|                         |   | December 31, 2010                         |   |   | December 31, 2009 |   |
|                         |   | (In thousands, except for per share data) |   |
|                         |   |                                      |   |
| Net interest income          |   | $                                         | 28,075 |   |   | $ | 34,826 |   |
| Noninterest income           |   |                                      | 1,280  |   |   |   | 23,682 |   |
| Noninterest expense          |   |                                      | 22,133 |   |   |   | 38,197 |   |
| Net income                   |   |                                      | 2,659  |   |   |   | 14,823 |   |
|                         |   |                                      |   |   |   |   |   |   |
| Net income per common share: |   |                                      |   |   |   |   |   |   |
| Basic                        |   |                                      | 0.38   |   |   |   | 1.55 |   |
| Diluted                      |   |                                      | 0.38   |   |   |   | 1.54 |   |

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