| New      York                                                       | 15-6018501                                   |
|---------------------------------------------------------------------|----------------------------------------------|
| (State      or Other Jurisdiction of Incorporation or Organization) | (I.R.S.      Employer Identification Number) |
|                                                                |                                         |

| Large      accelerated filer [  ]                                                  | Accelerated      filer [ X ]        |
|----------------------------------------------------------------------------------------------|-------------------------------------|
| Non-accelerated      filer [  ] (Do not check if a smaller reporting      company) | Smaller      reporting company [X ] |

----

| ITEM      1: | Interim      Financial Statements (Unaudited) |
|--------------|-----------------------------------------------|

|   | Consolidated      Statements of Condition |
|--------|-------------------------------------------|

|   | Consolidated      Statements of Income |
|--------|----------------------------------------|

|   | Consolidated      Statements of Changes in Shareholders’ Equity and Comprehensive      Income |
|--------|-----------------------------------------------------------------------------------------------------|

|   | Consolidated      Statements of Cash Flows |
|--------|--------------------------------------------|

|   | Notes      to Unaudited Consolidated Interim Financial  Statements |
|--------|--------------------------------------------------------------------|

| ITEM      2: | Management’s      Discussion and Analysis of Financial Condition and Results of      Operations |
|--------------|-------------------------------------------------------------------------------------------------------|

|   | A. | General |
|--------|----|---------|

|   | B. | Financial      Condition and Performance Overview |
|--------|----|---------------------------------------------------|

|   | C. | Comparison      of Financial Condition at June 30, 2010 and December 31,    2009 |
|--------|----|----------------------------------------------------------------------------------|

|   | D. | Comparison      of Results of Operations for the Three Months Ended June 30, 2010 and      2009 |
|--------|----|-------------------------------------------------------------------------------------------------|

|   | E. | Comparison      of Results of Operations for the Six Months Ended June 30, 2010 and      2009 |
|--------|----|-----------------------------------------------------------------------------------------------|

|   | F. | Liquidity |
|--------|----|-----------|

|   | G. | Capital      Resources and Dividends |
|--------|----|--------------------------------------|

| ITEM      3: | Quantitative      and Qualitative Disclosures about MarketRisk |
|--------------|----------------------------------------------------------------|

| ITEM      4: | Controls      and Procedures |
|--------------|------------------------------|

| ITEM      4T: | Controls      and Procedures |
|---------------|------------------------------|

| ITEM      1: | Legal      Proceedings |
|--------------|------------------------|

| ITEM      1A: | Risk      Factors |
|---------------|-------------------|

| ITEM      2: | Unregistered      Sales of Equity Securities and Use ofProceeds |
|--------------|-----------------------------------------------------------------|

| ITEM      3: | Defaults      Upon Senior Securities |
|--------------|--------------------------------------|

| ITEM      4: | (REMOVED      AND RESERVED) |
|--------------|-----------------------------|

| ITEM      5: | Other      Information |
|--------------|------------------------|

| ITEM      6: | Exhibits |
|--------------|----------|

----

----

----

T

| The      Wilber Corporation                                                                                                                                |   |          |    |   |              |   |
|------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------|---------|--------|-------------------|--------|
| Consolidated      Statements of Condition (Unaudited)                                                                                                      |   |          |    |   |              |   |
|                                                                                                                                                       |   | June      30, |    |   | December      31, |   |
| in      thousands except share and per share data                                                                                                          |   | 2010          |    | 2009   |              |
| Assets                                                                                                                                                     |   |          |    |   |              |   |
| Cash      and Due from Banks                                                                                                                               |   | $             | 9,017   |   |              | $      | 10,004 |   |
| Interest      Bearing Balances with Banks                                                                                                                  |   |          | 53,689  |   |              |   | 22,648 |   |
| Federal      Funds Sold                                                                                                                                    |   |          | 781     |   |              |   | 1,391 |   |
| Total      Cash and Cash Equivalents                                                                                                                       |   |          | 63,487  |   |              |   | 34,043 |   |
| Securities                                                                                                                                                 |   |          |    |   |              |   |   |   |
| Trading,      at Fair Value                                                                                                                                |   |          | 1,003   |   |              |   | 1,165 |   |
| Available-for-Sale,      at Fair Value                                                                                                                     |   |          | 198,354 |   |              |   | 173,302 |   |
| Held-to-Maturity,      Fair Value of $67,902 at June 30, 2010 and $70,147   at      December 31, 2009                                       |   |          | 65,834  |   |              |   | 69,391 |   |
| Other      Investments                                                                                                                                     |   |          | 5,857   |   |              |   | 5,941 |   |
| Loans      Held for Sale                                                                                                                                   |   |          | 3,210   |   |              |   | 576 |   |
| Loans                                                                                                                                                      |   |          | 559,788 |   |              |   | 587,237 |   |
| Allowance      for Loan Losses                                                                                                                             |   |          | (10,046 | )      |              |   | (8,622 | ) |
| Loans,      Net                                                                                                                                            |   |          | 549,742 |   |              |   | 578,615 |   |
| Premises      and Equipment, Net                                                                                                                           |   |          | 5,648   |   |              |   | 6,004 |   |
| Bank      Owned Life Insurance                                                                                                                             |   |          | 17,294  |   |              |   | 16,994 |   |
| Goodwill                                                                                                                                                   |   |          | 4,619   |   |              |   | 4,619 |   |
| Pension      Asset                                                                                                                                         |   |          | 1,372   |   |              |   | 1,247 |   |
| Other      Assets                                                                                                                                          |   |          | 12,848  |   |              |   | 15,036 |   |
| Total      Assets                                                                                                                                          |   | $             | 929,268 |   |              | $      | 906,933 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
| Liabilities      and Shareholders’ Equity                                                                                                            |   |          |    |   |              |   |   |   |
| Deposits:                                                                                                                                                  |   |          |    |   |              |   |   |   |
| Demand                                                                                                                                                     |   | $             | 68,349  |   |              | $      | 70,437 |   |
| Savings,      NOW and Money Market Deposit Accounts                                                                                                        |   |          | 372,751 |   |              |   | 365,908 |   |
| Certificates      of Deposit (Over $100M)                                                                                                                  |   |          | 134,811 |   |              |   | 125,418 |   |
| Certificates      of Deposit (Under $100M)                                                                                                                 |   |          | 175,799 |   |              |   | 165,278 |   |
| Other      Deposits                                                                                                                                        |   |          | 26,823  |   |              |   | 26,699 |   |
| Total      Deposits                                                                                                                                        |   |          | 778,533 |   |              |   | 753,740 |   |
| Short-Term      Borrowings                                                                                                                                 |   |          | 9,546   |   |              |   | 12,650 |   |
| Long-Term      Borrowings                                                                                                                                  |   |          | 58,509  |   |              |   | 60,939 |   |
| Other      Liabilities                                                                                                                                     |   |          | 5,620   |   |              |   | 6,685 |   |
| Total      Liabilities                                                                                                                                     |   |          | 852,208 |   |              |   | 834,014 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
| Shareholders’      Equity:                                                                                                                           |   |          |    |   |              |   |   |   |
| Common      Stock, $.01 Par Value, 16,000,000 Shares Authorized, and        13,961,664 Shares Issued at June 30, 2010 and December 31,      2009 |   |          | 140     |   |              |   | 140 |   |
| Additional      Paid in Capital                                                                                                                            |   |          | 4,224   |   |              |   | 4,224 |   |
| Retained      Earnings                                                                                                                                     |   |          | 99,773  |   |              |   | 98,222 |   |
| Accumulated      Other Comprehensive Loss                                                                                                                  |   |          | (498    | )      |              |   | (2,866 | ) |
| Treasury      Stock at Cost, 3,244,219 Shares at June 30, 2010 and        3,273,555 Shares at December 31, 2009                                  |   |          | (26,560 | )      |              |   | (26,801 | ) |
| Restricted      Stock, 3,186 Shares at June 30, 2010 and 0 Shares at        December 31, 2009                                                    |   |          | (19     | )      |              |   | - |   |
| Total      Shareholders’ Equity                                                                                                                      |   |          | 77,060  |   |              |   | 72,919 |   |
| Total      Liabilities and Shareholders’ Equity                                                                                                      |   | $             | 929,268 |   |              | $      | 906,933 |   |
|                                                                                                                                                       |   |          |    |   |              |   |   |   |
| See      accompanying notes to unaudited consolidated interim financial      statements.                                                                   |   |

----

| The      Wilber Corporation                                                              |   |                    |   |   |                  |   |   |   |   |   |   |   |
|------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|--------|--------|--------|--------|--------|--------|
| Consolidated      Statements of Income (Unaudited)                                       |   | Three      Months Ended |   |   | Six      Months Ended |   |
|                                                                                     |   | June      30,           |   |   | June      30,         |   |
| in      thousands except share and per share data                                        |   | 2010                    |   |   | 2009                  |   |   | 2010   |   |   | 2009   |   |
| Interest      and Dividend Income                                                        |   |                    |   |   |                  |   |   |   |   |   |   |   |
| Interest      and Fees on Loans                                                          |   | $                       | 8,033  |   |                  | $      | 8,841  |   |   | $      | 16,493 |   |   | $ | 17,737 |   |
| Interest      and Dividends on Securities:                                               |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| U.S.      Government and Agency Obligations                                              |   |                    | 2,214  |   |                  |   | 2,342  |   |   |   | 4,202  |   |   |   | 4,702 |   |
| State      and Municipal Obligations                                                     |   |                    | 487    |   |                  |   | 408    |   |   |   | 952    |   |   |   | 848 |   |
| Other                                                                                    |   |                    | 49     |   |                  |   | 156    |   |   |   | 108    |   |   |   | 213 |   |
| Interest      on Federal Funds Sold and Interest Bearing Balances at Other      Banks    |   |                    | 21     |   |                  |   | 18     |   |   |   | 40     |   |   |   | 32 |   |
| Total      Interest and Dividend Income                                                  |   |                    | 10,804 |   |                  |   | 11,765 |   |   |   | 21,795 |   |   |   | 23,532 |   |
|                                                                                     |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest      Expense                                                                    |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Interest      on Deposits:                                                               |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Savings,      NOW and Money Market Deposit Accounts                                      |   |                    | 391    |   |                  |   | 835    |   |   |   | 800    |   |   |   | 1,791 |   |
| Certificates      of Deposit (Over $100M)                                                |   |                    | 642    |   |                  |   | 800    |   |   |   | 1,257  |   |   |   | 1,824 |   |
| Certificates      of Deposit (Under $100M)                                               |   |                    | 1,131  |   |                  |   | 1,395  |   |   |   | 2,194  |   |   |   | 3,062 |   |
| Other      Deposits                                                                      |   |                    | 118    |   |                  |   | 124    |   |   |   | 234    |   |   |   | 250 |   |
| Interest      on Short-Term Borrowings                                                   |   |                    | 10     |   |                  |   | 15     |   |   |   | 24     |   |   |   | 53 |   |
| Interest      on Long-Term Borrowings                                                    |   |                    | 650    |   |                  |   | 657    |   |   |   | 1,304  |   |   |   | 1,321 |   |
| Total      Interest Expense                                                              |   |                    | 2,942  |   |                  |   | 3,826  |   |   |   | 5,813  |   |   |   | 8,301 |   |
| Net      Interest Income                                                                 |   |                    | 7,862  |   |                  |   | 7,939  |   |   |   | 15,982 |   |   |   | 15,231 |   |
| Provision      for Loan Losses                                                           |   |                    | 1,875  |   |                  |   | 950    |   |   |   | 2,675  |   |   |   | 2,150 |   |
| Net      Interest Income After Provision for Loan Losses                                 |   |                    | 5,987  |   |                  |   | 6,989  |   |   |   | 13,307 |   |   |   | 13,081 |   |
|                                                                                     |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      Income                                                                  |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Trust      Fees                                                                          |   |                    | 451    |   |                  |   | 388    |   |   |   | 869    |   |   |   | 712 |   |
| Service      Charges on Deposit Accounts                                                 |   |                    | 390    |   |                  |   | 450    |   |   |   | 795    |   |   |   | 863 |   |
| Investment      Security Gains, Net                                                      |   |                    | 1,120  |   |                  |   | 1,009  |   |   |   | 1,747  |   |   |   | 1,450 |   |
| Net      Gain on Sale of Loans                                                           |   |                    | 91     |   |                  |   | 125    |   |   |   | 171    |   |   |   | 180 |   |
| Increase      in Cash Surrender Value of Bank Owned Life Insurance                       |   |                    | 149    |   |                  |   | 147    |   |   |   | 300    |   |   |   | 294 |   |
| Other      Service Fees                                                                  |   |                    | 188    |   |                  |   | 172    |   |   |   | 368    |   |   |   | 342 |   |
| Other      Income                                                                        |   |                    | 90     |   |                  |   | 136    |   |   |   | 184    |   |   |   | 217 |   |
| Total      Noninterest Income                                                            |   |                    | 2,479  |   |                  |   | 2,427  |   |   |   | 4,434  |   |   |   | 4,058 |   |
|                                                                                     |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      Expense                                                                 |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Salaries                                                                                 |   |                    | 2,999  |   |                  |   | 3,202  |   |   |   | 6,065  |   |   |   | 5,933 |   |
| Employee      Benefits                                                                   |   |                    | 721    |   |                  |   | 820    |   |   |   | 1,540  |   |   |   | 1,675 |   |
| Occupancy      Expense of Company Premises                                               |   |                    | 469    |   |                  |   | 473    |   |   |   | 1,015  |   |   |   | 1,060 |   |
| Furniture      and Equipment Expense                                                     |   |                    | 232    |   |                  |   | 262    |   |   |   | 469    |   |   |   | 513 |   |
| Computer      Service Fees                                                               |   |                    | 402    |   |                  |   | 426    |   |   |   | 818    |   |   |   | 838 |   |
| Advertising      and Marketing                                                           |   |                    | 128    |   |                  |   | 126    |   |   |   | 249    |   |   |   | 282 |   |
| Professional      Fees                                                                   |   |                    | 308    |   |                  |   | 222    |   |   |   | 566    |   |   |   | 503 |   |
| FDIC      Premium Assessment                                                             |   |                    | 447    |   |                  |   | 574    |   |   |   | 893    |   |   |   | 665 |   |
| Loan      Collection Expense                                                             |   |                    | 414    |   |                  |   | 213    |   |   |   | 534    |   |   |   | 286 |   |
| Other      Miscellaneous Expenses                                                        |   |                    | 1,013  |   |                  |   | 868    |   |   |   | 1,807  |   |   |   | 1,812 |   |
| Total      Noninterest Expense                                                           |   |                    | 7,133  |   |                  |   | 7,186  |   |   |   | 13,956 |   |   |   | 13,567 |   |
| Income      Before Taxes                                                                 |   |                    | 1,333  |   |                  |   | 2,230  |   |   |   | 3,785  |   |   |   | 3,572 |   |
| Income      Taxes                                                                        |   |                    | (218   | )      |                  |   | (637   | )      |   |   | (906   | )      |   |   | (906 | ) |
|                                                                                     |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income                                                                          |   | $                       | 1,115  |   |                  | $      | 1,593  |   |   | $      | 2,879  |   |   | $ | 2,666 |   |
|                                                                                     |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| Basic      and Diluted Earnings Per Share                                                |   | $                       | 0.10   |   |                  | $      | 0.15   |   |   | $      | 0.27   |   |   | $ | 0.25 |   |
|                                                                                     |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |
| See      accompanying notes to unaudited consolidated interim financial      statements. |   |

----

| The      Wilber Corporation                                                                                                                        |   |   |   |   |         |   |   |     |   |   |               |   |   |     |   |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------------|--------|--------|----------|--------|--------|--------------------|--------|--------|----------|--------|--------|
| Consolidated      Statements of Changes in Shareholders' Equity and Comprehensive Income      (Unaudited)                                          |   |
|                                                                                                                                               |   |   |   |   |         |   |   |     |   |   |               |   |   |     |   |   |   |   |   |   |   |
|                                                                                                                                               |   |   |   |   |         |   |   |     |   |   | Accumulated        |   |   |     |   |   |   |   |   |   |   |
|                                                                                                                                               |   |   |   |   | Additional   |   |   |     |   |   | Other              |   |   |     |   |   |   |   |   |   |   |
|                                                                                                                                               |   | Common |   |   | Paid      in |   |   | Retained |   |   | Comprehensive      |   |   | Treasury |   |   | Restricted |   |   |   |   |
| in      thousands except share and per share data                                                                                                  |   | Stock  |   |   | Capital      |   |   | Earnings |   |   | Income      (Loss) |   |   | Stock    |   |   | Stock |   |   | Total |   |
| Balance      at December 31, 2008                                                                                                                  |   | $      | 140    |   |         | $      | 4,224  |     |   | $      | 93,966             |   |   | $        | (2,560 | )      |   | $ | (28,311 | ) |   | $ | - |   |   | $ | 67,459 |   |
| Comprehensive      Income:                                                                                                                         |   |   |   |   |         |   |   |     |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income                                                                                                                                    |   |   | -      |   |         |   | -      |     |   |   | 2,666              |   |   |     | -      |   |   |   | - |   |   |   | - |   |   |   | 2,666 |   |
| Change      in Net Unrealized Gain on Securities,   Net      of Taxes                                                               |   |   | -      |   |         |   | -      |     |   |   | -                  |   |   |     | 172    |   |   |   | - |   |   |   | - |   |   |   | 172 |   |
| Change      in Net Actuarial Loss on Defined   Benefit      Plan, Net of Taxes                                                      |   |   | -      |   |         |   | -      |     |   |   | -                  |   |   |     | 146    |   |   |   | - |   |   |   | - |   |   |   | 146 |   |
| Total      Comprehensive Income                                                                                                                    |   |   |   |   |         |   |   |     |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   | 2,984 |   |
| Cash      Dividends ($0.155 per share)                                                                                                             |   |   | -      |   |         |   | -      |     |   |   | (1,629             | )      |   |     | -      |   |   |   | - |   |   |   | - |   |   |   | (1,629 | ) |
| Balance      at June 30, 2009                                                                                                                      |   | $      | 140    |   |         | $      | 4,224  |     |   | $      | 95,003             |   |   | $        | (2,242 | )      |   | $ | (28,311 | ) |   | $ | - |   |   | $ | 68,814 |   |
|                                                                                                                                               |   |   |   |   |         |   |   |     |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance      at December 31, 2009                                                                                                                  |   | $      | 140    |   |         | $      | 4,224  |     |   | $      | 98,222             |   |   | $        | (2,866 | )      |   | $ | (26,801 | ) |   | $ | - |   |   | $ | 72,919 |   |
| Comprehensive      Income:                                                                                                                         |   |   |   |   |         |   |   |     |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      Income                                                                                                                                    |   |   | -      |   |         |   | -      |     |   |   | 2,879              |   |   |     | -      |   |   |   | - |   |   |   | - |   |   |   | 2,879 |   |
| Change      in Net Unrealized Gain on Securities,   Net      of Taxes                                                               |   |   | -      |   |         |   | -      |     |   |   | -                  |   |   |     | 2,267  |   |   |   | - |   |   |   | - |   |   |   | 2,267 |   |
| Change      in Net Actuarial Loss on Defined   Benefit      Plan, Net of Taxes                                                      |   |   | -      |   |         |   | -      |     |   |   | -                  |   |   |     | 101    |   |   |   | - |   |   |   | - |   |   |   | 101 |   |
| Total      Comprehensive Income                                                                                                                    |   |   |   |   |         |   |   |     |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   | 5,247 |   |
| Cash      Dividends ($0.12 per share)                                                                                                              |   |   | -      |   |         |   | -      |     |   |   | (1,284             | )      |   |     | -      |   |   |   | - |   |   |   | - |   |   |   | (1,284 | ) |
| Sale      of Treasury Stock under Dividend   Reinvestment      and Direct Stock Purchase   Plan      (26,150 shares) |   |   | -      |   |         |   | -      |     |   |   | (39                | )      |   |     | -      |   |   |   | 216 |   |   |   | - |   |   |   | 177 |   |
| Issuance      of Restricted Stock (3,186 shares)                                                                                                   |   |   | -      |   |         |   | -      |     |   |   | (5                 | )      |   |     | -      |   |   |   | 25 |   |   |   | (20 | ) |   |   | - |   |
| Amortization      of Restricted Stock                                                                                                              |   |   | -      |   |         |   | -      |     |   |   | -                  |   |   |     | -      |   |   |   | - |   |   |   | 1 |   |   |   | 1 |   |
| Balance      at June 30, 2010                                                                                                                      |   | $      | 140    |   |         | $      | 4,224  |     |   | $      | 99,773             |   |   | $        | (498   | )      |   | $ | (26,560 | ) |   | $ | (19 | ) |   | $ | 77,060 |   |
|                                                                                                                                               |   |   |   |   |         |   |   |     |   |   |               |   |   |     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| See      accompanying notes to unaudited consolidated interim financial      statements.                                                           |   |
|                                                                                                                                               |   |

----

| The      Wilber Corporation                                                                        |   |                  |     |   |   |   |
|----------------------------------------------------------------------------------------------------|--------|-----------------------|----------|--------|--------|--------|
| Consolidated      Statements of Cash Flows (Unaudited)                                             |   | Six      Months Ended |     |
|                                                                                               |   | June      30,         |     |
| in      thousands                                                                                  |   | 2010                  |     |   | 2009   |   |
| Cash      Flows from Operating Activities:                                                         |   |                  |     |   |   |   |
| Net      Income                                                                                    |   | $                     | 2,879    |   |   | $      | 2,666 |   |
| Adjustments      to Reconcile Net Income to Net Cash                                               |   |                  |     |   |   |   |   |   |
| Provided      by (Used in) Operating Activities:                                                   |   |                  |     |   |   |   |   |   |
|    Provision      for Loan Losses                                                   |   |                  | 2,675    |   |   |   | 2,150 |   |
|    Depreciation      and Amortization                                               |   |                  | 686      |   |   |   | 862 |   |
|    Net      Amortization of Premiums and Accretion of Discounts on      Investments |   |                  | 475      |   |   |   | 242 |   |
|    Available-for-Sale      Security Gains, net                                      |   |                  | (1,789   | )      |   |   | (1,432 | ) |
|    Net      Loss on Disposal of Fixed Assets                                        |   |                  | 9        |   |   |   | - |   |
| Other      Real Estate Losses                                                                      |   |                  | 136      |   |   |   | 134 |   |
|    Increase      in Cash Surrender Value of Bank Owned Life Insurance               |   |                  | (300     | )      |   |   | (294 | ) |
|    Net      Decrease in Trading Securities                                          |   |                  | 120      |   |   |   | 129 |   |
|    Net      Losses (Gains) on Trading Securities                                    |   |                  | 42       |   |   |   | (18 | ) |
|    Net      Gain on Sale of Mortgage Loans                                          |   |                  | (171     | )      |   |   | (180 | ) |
|    Originations      of Mortgage Loans Held for Sale                                |   |                  | (6,989   | )      |   |   | (8,836 | ) |
|    Proceeds      from Sale of Mortgage Loans Held for Sale                          |   |                  | 6,826    |   |   |   | 8,325 |   |
|    Decrease      (Increase) in Other Assets                                         |   |                  | 749      |   |   |   | (803 | ) |
|    (Decrease)      Increase in Other Liabilities                                    |   |                  | (1,065   | )      |   |   | 533 |   |
| Net      Cash Provided by Operating Activities                                                     |   |                  | 4,283    |   |   |   | 3,478 |   |
|                                                                                               |   |                  |     |   |   |   |   |   |
| Cash      Flows from Investing Activities:                                                         |   |                  |     |   |   |   |   |   |
| Proceeds      from Maturities of Held-to-Maturity Investment Securities                            |   |                  | 12,518   |   |   |   | 3,892 |   |
| Proceeds      from Maturities of Available-for-Sale InvestmentSecurities                           |   |                  | 24,455   |   |   |   | 28,390 |   |
| Proceeds      from Sales and Calls of Available-for-Sale Investment      Securities                |   |                  | 72,096   |   |   |   | 54,889 |   |
| Purchases      of Held-to Maturity Investment Securities                                           |   |                  | (9,065   | )      |   |   | (23,256 | ) |
| Purchases      of Available-for-Sale Investment Securities                                         |   |                  | (116,488 | )      |   |   | (70,536 | ) |
| Net      Decrease (Increase) in Other Investments                                                  |   |                  | 84       |   |   |   | (126 | ) |
| Net      Decrease (Increase) in Loans                                                              |   |                  | 22,356   |   |   |   | (24,659 | ) |
| Purchase      of Premises and Equipment, Net of Disposals                                          |   |                  | (110     | )      |   |   | (348 | ) |
| Proceeds      from Sale of Premises and Equipment                                                  |   |                  | 35       |   |   |   | - |   |
| Proceeds      from Sale of Other Real Estate                                                       |   |                  | 1,128    |   |   |   | - |   |
|    Net      Cash Provided by (Used in) Investing Activities                         |   |                  | 7,009    |   |   |   | (31,754 | ) |
|                                                                                               |   |                  |     |   |   |   |   |   |
| Cash      Flows from Financing Activities:                                                         |   |                  |     |   |   |   |   |   |
| Net      Increase in Demand, Savings, NOW, Money Market and Other      Deposits                    |   |                  | 4,879    |   |   |   | 75,002 |   |
| Net      Increase (Decrease) in Certificates of Deposit                                            |   |                  | 19,914   |   |   |   | (55,951 | ) |
| Net      Decrease in Short-Term Borrowings                                                         |   |                  | (3,104   | )      |   |   | (6,863 | ) |
| Increase      in Long-Term Borrowings                                                              |   |                  | 50       |   |   |   | 57 |   |
| Repayment      of Long-Term Borrowings                                                             |   |                  | (2,480   | )      |   |   | (2,233 | ) |
| Sale      of Treasury Stock                                                                        |   |                  | 177      |   |   |   | - |   |
| Cash      Dividends Paid                                                                           |   |                  | (1,284   | )      |   |   | (1,628 | ) |
|    Net      Cash Provided by Financing Activities                                   |   |                  | 18,152   |   |   |   | 8,384 |   |
|      Net      Increase (Decrease) in Cash and Cash Equivalents            |   |                  | 29,444   |   |   |   | (19,892 | ) |
| Cash      and Cash Equivalents at Beginning of Period                                              |   |                  | 34,043   |   |   |   | 44,421 |   |
| Cash      and Cash Equivalents at End of Period                                                    |   | $                     | 63,487   |   |   | $      | 24,529 |   |
|                                                                                               |   |                  |     |   |   |   |   |   |
| Supplemental      Disclosures of Cash Flow Information:                                            |   |                  |     |   |   |   |   |   |
| Cash      Paid during Period for:                                                                  |   |                  |     |   |   |   |   |   |
| Interest                                                                                           |   | $                     | 5,786    |   |   | $      | 8,522 |   |
| Income      Taxes                                                                                  |   |                  | 1,422    |   |   |   | 726 |   |
| Non      Cash Investing Activities:                                                                |   |                  |     |   |   |   |   |   |
| Change      in Net Unrealized Gain on Securities, Net of Tax                                  |   |                  | 2,267    |   |   |   | 172 |   |
| Transfer      of Loans to Other Real Estate                                                        |   |                  | 1,376    |   |   |   | 203 |   |
| Transfer      of Loans to Loans Held for Sale                                                      |   |                  | 2,300    |   |   |   | - |   |
|                                                                                               |   |                  |     |   |   |   |   |   |
| See      accompanying notes to unaudited consolidated interim financial      statements.           |   |

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| The      Wilber Corporation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Notes      to Unaudited Consolidated Interim Financial Statements                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
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| Note      1. Summary of Significant Accounting Policies                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Basis of Presentation -      The accompanying unaudited consolidated interim financial statements      include the accounts of The Wilber Corporation (the “Company”) and its      wholly owned subsidiary Wilber National Bank (the "Bank”), and the Bank's      wholly owned subsidiaries.  All significant intercompany      accounts and transactions have been eliminated in      consolidation.  The accompanying unaudited consolidated interim      financial statements have been prepared in accordance with accounting      principles generally accepted in the United States of America ("GAAP") for      interim financial information and with the instructions to Form 10-Q and      Article 10 of Regulation S-X.  Accordingly, they do not include      all of the information and footnotes required by GAAP for complete      financial statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| The      preparation of financial statements in conformity with GAAP required      management to make estimates and assumptions that affect the reported      amounts of assets and liabilities and disclosure of contingent assets and      liabilities at the date of the financial statements, and the reported      amounts of revenues and expenses during the reporting      period.  Estimates that are particularly susceptible to change      in the near term are used in connection with the determination of the      allowance for loan losses.  Actual results could differ from      those estimates.  In the opinion of management, the unaudited      consolidated interim financial statements include all necessary      adjustments, consisting of normal recurring accruals, necessary for a fair      presentation for the periods presented.  The results for the      periods presented are not necessarily indicative of results to be expected      for the entire fiscal year or any other interim period.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| The      data in the consolidated statement of condition for December 31, 2009 was      derived from the Company's 2009 Annual Report on Form 10-K.  The      Annual Report on Form 10-K includes the Company's audited consolidated      statements of condition, consolidated statements of income, consolidated      statements of cash flows, and consolidated statements of changes in      shareholders’ equity and comprehensive income as of December 31, 2009 and      2008.  That data, along with the unaudited interim financial      information presented in the consolidated statement of condition as of      June 30, 2010, the consolidated statements of income for the three and      six-month periods ended June 30, 2010 and 2009, the consolidated      statements of cash flows and the consolidated statements of changes in      shareholders' equity and comprehensive income for the six-month periods      ended June 30, 2010 and 2009, should be read in conjunction with the 2009      consolidated financial statements, including the notes      thereto.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |
| Amounts      in prior periods' consolidated financial statements are reclassified when      necessary to conform to the current period's  presentation.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
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| Restricted Stock Plan -      In 2008 the Company’s shareholders established an Omnibus Incentive Plan      (the “Omnibus Plan”).  The Omnibus Plan permits the granting of      cash-based awards, restricted stock, restricted stock units, covered      employee annual incentive awards and other stock-based awards, other than      stock options, for a select group of management or highly compensated      employees and directors of the Company.  In connection with the      Omnibus Plan, the Board approved individual incentive plans for the then      President and Chief Executive Officer (“CEO”) and the Executive Vice      President (“EVP”) and Chief Financial Officer (“CFO”), to be contingent      upon the Company meeting certain performance goals.  As a result      of the 2009 performance goals being met, in January 2010, both the then      President and CEO and the EVP and CFO were awarded restricted stock as      part of the Omnibus Plan.  The restricted stock will become      vested at a rate of twenty five percent per year for the next four      years.  The related compensation expense will be recognized over      the four year vesting life and will be offset within the shareholder      equity account of the Company.  As a result of the granting of      these awards, in addition to reporting basic earnings per share (“EPS”),      the Company will report diluted EPS, which reflects the potential dilution      that could occur assuming complete vesting of the restricted      stock. |
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| The      Board expanded the Omnibus Plan in January 2010, to include the Senior      Vice Presidents and the Regional Presidents, who will be eligible for the      benefits of the Plan commencing in 2011, if the performance goals for 2010      are met.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |

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| Note      1. Summary of Significant Accounting Policies,Continued                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| Recently Adopted Accounting      Pronouncements – On January 1, 2010, the Company adopted the      provisions of the Accounting Standards Codification (“ASC”) Topic      860-10-50, Transfers and      Servicing-Overall-Disclosures as updated by Accounting Standards      Update (“ASU”) 2009-16, Accounting for Transfers of      Financial Assets.  The standard enhances the reporting      for transfers of financial assets, including securitization      transactions.  It also requires companies to report where they      have continuing exposure to the risks related to transferred financial      assets and eliminates the concept of a "qualifying special-purpose      entity."  In addition, it changes the requirements for      derecognizing financial assets and requires additional disclosures about      all continuing involvements with transferred financial assets, including      information about gains and losses resulting from transfers during the      period.  This standard also requires additional year-end and      interim disclosures.  The standard must be applied to transfers      that occurred before and after its effective date.  The adoption      of ASC Topic 860-10-50 had no impact on the Company’s financial      statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| On      January 1, 2010, the Company adopted ASC topic 810-10-50, Consolidation-Overall-Disclosures      as amended by ASU 2009-17, Consolidation-Improvements to      Financial Reporting by Enterprises Involved with Variable Interest      Entities, to change how a company determines when an entity that is      insufficiently capitalized or is not controlled through voting (or similar      rights) should be consolidated.  The determination of whether a      company is required to consolidate an entity is based on, among other      things, an entity’s purpose and design and a company’s ability to direct      the activities of the entity that most significantly impact the entity’s      economic performance.  This standard also requires additional      disclosures about the reporting entity’s involvement with      variable-interest entities and any significant changes in risk exposure      due to that involvement as well as its effect on the entity’s financial      statements.  The standard also requires additional year-end and      interim disclosures.  In February 2010, ASU 2010-10, Consolidation-Amendments for      Certain Investment Funds was issued which provides an indefinite      deferral of ASC topic 810-10 for certain entities.  Entities      that meet the criteria for deferral of consolidation guidance are still      required to provide disclosures required by the topic.  The      update also clarifies how a related party’s interests in an entity should      be considered when evaluating the criteria for determining whether a      decision maker or service provider fee represents a variable      interest.  It clarifies that a quantitative calculation should      not be the only basis for evaluating whether a decision maker’s or service      provider’s fee is a variable interest.  The adoption of ASC      Topic 810-10-50 had no impact on the Company’s financial      statements. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              |
| In      January 2010, a clarification ASU 2010-06, Fair Value Measurements and      Disclosures, Improving Disclosures about Fair Value Measurements      was issued for ASC topic 820-10-50, Fair Value Measurements and      Disclosures.  The amendments in ASU 2010-06 require      companies to provide a separate disclosure for transfers in and out of      Levels 1 and 2, including a description of the reasons for the      transfer.  The amendments also require companies to report      activity in Level 3 fair value measurements on a gross basis, including      information about purchases, sales, issuances and      settlements.  The amendments also clarify existing disclosures      related to disaggregated reporting, model inputs and valuation      techniques.  The new disclosures were effective for the first      quarter of 2010, except for the gross reporting of Level 3 activity, which      is effective beginning the first quarter of 2011.  These      amendments resulted in additional disclosures in our interim and annual      reports.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
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| Subsequent Events – The      Company has evaluated whether any subsequent events that require      recognition or disclosure have taken place through the date these      financial statements were issued.  There were no subsequent      events that materially affected these Consolidated Financial      Statements.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |

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| Note      2. Earnings Per Share                                                                                                                                                                                                                                                                                                                       |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| Basic      earnings per share are calculated by dividing net income available to      common shareholders by the weighted average number of common shares      outstanding during the period. Diluted earnings per share includes      the potential dilutive effect that could occur upon the assumed exercise      of restricted stock awards. |   |
|                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
| The      following table sets forth the calculation of basic and diluted earnings      per share:                                                                                                                                                                                                                                                     |   |
|                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                                                                                                                                                                  |   | Three      Months Ended |   |   | Six      Months Ended |   |
|                                                                                                                                                                                                                                                                                                                                                  |   | June      30, |   |   | June      30, |   |
| in      thousands except share and per share data                                                                                                                                                                                                                                                                                                     |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Basic      Earnings Per Share                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income applicable to common shareholders                                                                                                                                                                                                                                                                                                     |   | $ | 1,115 |   |   | $ | 1,593 |   |   | $ | 2,879 |   |   | $ | 2,666 |   |
| Weighted      average common shares outstanding                                                                                                                                                                                                                                                                                                       |   |   | 10,707,015 |   |   |   | 10,503,704 |   |   |   | 10,702,595 |   |   |   | 10,503,704 |   |
| Basic      earnings per share                                                                                                                                                                                                                                                                                                                         |   | $ | 0.10 |   |   | $ | 0.15 |   |   | $ | 0.27 |   |   | $ | 0.25 |   |
|                                                                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Diluted      Earnings Per Share                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      income applicable to common shareholders                                                                                                                                                                                                                                                                                                     |   | $ | 1,115 |   |   | $ | 1,593 |   |   | $ | 2,879 |   |   | $ | 2,666 |   |
| Weighted      average common shares outstanding                                                                                                                                                                                                                                                                                                       |   |   | 10,707,015 |   |   |   | 10,503,704 |   |   |   | 10,702,595 |   |   |   | 10,503,704 |   |
| Effect      of assumed exercise of average restricted   stock      shares                                                                                                                                                                                                                                                              |   |   | 185 |   |   |   | - |   |   |   | 164 |   |   |   | - |   |
| Diluted      average common shares outstanding                                                                                                                                                                                                                                                                                                        |   |   | 10,707,200 |   |   |   | 10,503,704 |   |   |   | 10,702,759 |   |   |   | 10,503,704 |   |
| Diluted      earnings per share                                                                                                                                                                                                                                                                                                                       |   | $ | 0.10 |   |   | $ | 0.15 |   |   | $ | 0.27 |   |   | $ | 0.25 |   |

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| Note      3. Investment Securities                                                                                                                                                                                                                                                  |   |   |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |
| The      amortized cost and fair value of investment securities are shown in the      table below.  The trading securities are comprised of mutual      funds and individual equity and debt securities held for the Company's      executive deferred compensation plan. |
|                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |   |   |

|                                                  |   | June      30, 2010 |    |
|-------------------------------------------------------|--------|--------------------|---------|
|                                                  |   |               |    |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                                  |   | Amortized          |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| in      thousands                                     |   | Cost               |    |   | Gains |   |   | Losses |   |   | Value |   |
| Available-for-Sale      Portfolio                     |   |               |    |   |   |   |   |   |   |   |   |   |
| Obligations      of States and Political Subdivisions |   | $                  | 31,054  |   |   | $ | 696 |   |   | $ | 58 |   |   | $ | 31,692 |   |
| Mortgage-Backed      Securities                       |   |               | 162,188 |   |   |   | 4,222 |   |   |   | 2 |   |   |   | 166,408 |   |
| Other                                                 |   |               | 254     |   |   |   | - |   |   |   | - |   |   |   | 254 |   |
|                                                  |   | $                  | 193,496 |   |   | $ | 4,918 |   |   | $ | 60 |   |   | $ | 198,354 |   |
|                                                  |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trading      Portfolio                                |   | $                  | 1,085   |   |   | $ | 36 |   |   | $ | 118 |   |   | $ | 1,003 |   |
|                                                  |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held-to-Maturity      Portfolio                       |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations      of States and Political Subdivisions |   | $                  | 10,983  |   |   | $ | 276 |   |   | $ | 1 |   |   | $ | 11,258 |   |
| Mortgage-Backed      Securities                       |   |               | 54,851  |   |   |   | 1,805 |   |   |   | 12 |   |   |   | 56,644 |   |
|                                                  |   | $                  | 65,834  |   |   | $ | 2,081 |   |   | $ | 13 |   |   | $ | 67,902 |   |
|                                                  |   |               |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

|                                                  |   | December      31, 2009 |    |
|-------------------------------------------------------|--------|------------------------|---------|
|                                                  |   |                   |    |   | Gross |   |   | Gross |   |   | Estimated |   |
|                                                  |   | Amortized              |    |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
| in      thousands                                     |   | Cost                   |    |   | Gains |   |   | Losses |   |   | Value |   |
| Available-for-Sale      Portfolio                     |   |                   |    |   |   |   |   |   |   |   |   |   |
| Obligations      of States and Political Subdivisions |   | $                      | 32,872  |   |   | $ | 496 |   |   | $ | 412 |   |   | $ | 32,956 |   |
| Mortgage-Backed      Securities                       |   |                   | 139,192 |   |   |   | 1,800 |   |   |   | 724 |   |   |   | 140,268 |   |
| Other                                                 |   |                   | 78      |   |   |   | - |   |   |   | - |   |   |   | 78 |   |
|                                                  |   | $                      | 172,142 |   |   | $ | 2,296 |   |   | $ | 1,136 |   |   | $ | 173,302 |   |
|                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Trading      Portfolio                                |   | $                      | 1,194   |   |   | $ | 55 |   |   | $ | 84 |   |   | $ | 1,165 |   |
|                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held-to-Maturity      Portfolio                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Obligations      of States and Political Subdivisions |   | $                      | 14,407  |   |   | $ | 277 |   |   | $ | 6 |   |   | $ | 14,678 |   |
| Mortgage-Backed      Securities                       |   |                   | 54,984  |   |   |   | 832 |   |   |   | 347 |   |   |   | 55,469 |   |
|                                                  |   | $                      | 69,391  |   |   | $ | 1,109 |   |   | $ | 353 |   |   | $ | 70,147 |   |
|                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |

| The      following tables provide information on temporarily impaired      securities: |   |
|----------------------------------------------------------------------------------------|--------|
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   | June      30, 2010 |   |
|                                                                                   |   | Less      Than 12 Months |   |   | 12      Months or Longer |   |   | Total |   |
|                                                                                   |   | Estimated |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |
| in      thousands                                                                      |   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
| Obligations      of States and Political     Subdivisions     |   | $ | 4,626 |   |   | $ | 58 |   |   | $ | 104 |   |   | $ | 1 |   |   | $ | 4,730 |   |   | $ | 59 |   |
| Mortgage-Backed      Securities                                                        |   |   | 2,460 |   |   |   | 14 |   |   |   | - |   |   |   | - |   |   |   | 2,460 |   |   |   | 14 |   |
|                                                                                   |   | $ | 7,086 |   |   | $ | 72 |   |   | $ | 104 |   |   | $ | 1 |   |   | $ | 7,190 |   |   | $ | 73 |   |

----

| Note      3. Investment Securities, Continued |                   |
|-----------------------------------------------|------------------------|
|                                          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                          | December      31, 2009 |   |
|                                          |                   | Less      Than 12 Months |   |   | 12      Months or Longer |   |   | Total |   |
|                                          | Estimated              |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |   | Estimated |   |   | Unrealized |   |
| in      thousands                             |                   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |   | Fair      Value |   |   | Losses |   |
| Obligations      of States and Political      |                   | $ | 10,567 |   |   | $ | 415 |   |   | $ | 67 |   |   | $ | 3 |   |   | $ | 10,634 |   |   | $ | 418 |   |
|      Subdivisions    |
| Mortgage-Backed      Securities               |                   |   | 73,663 |   |   |   | 1,027 |   |   |   | 1,422 |   |   |   | 44 |   |   |   | 75,085 |   |   |   | 1,071 |   |
|                                          |                   | $ | 84,230 |   |   | $ | 1,442 |   |   | $ | 1,489 |   |   | $ | 47 |   |   | $ | 85,719 |   |   | $ | 1,489 |   |
|                                          |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| The      above unrealized losses are considered temporary, based on the      following:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |   |   |   |   |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Obligations      of states and political subdivisions: The unrealized losses on these      investments were caused by market interest rate increases since the time      of purchase.  The contractual terms of these investments require      the issuer to settle the securities at par upon maturity of the      investment.  Because the decline in fair value is attributed to      market interest rates and not credit quality, and because the Company has      the ability and intent to hold these investments until a market price      recovery, which may be to maturity, these investments are not considered      other than temporarily impaired.                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| Mortgage-backed      securities:  The unrealized losses on investments in      mortgage-backed securities were caused by market interest rate differences      between the time of purchase and the measurement date.  All of      the contractual cash flows of these securities are rated AAA or backed by      various U.S. Government Agencies or U.S. Government Sponsored Enterprises      such as Government National Mortgage Association, Federal National      Mortgage Association and Federal Home Loan Mortgage      Corporation.  Because the decline in fair value is attributed to      market interest rates and not credit quality, and because the Company does      not intend to sell these investments, they are not considered other than      temporarily impaired. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |
| The      amortized cost and fair value of debt securities by contractual maturity      are shown below.  Expected maturities will differ from      contractual maturities because issuers may have the right to call or      prepay obligations with or without call or prepayment      penalties.  Although principal payments on mortgage-backed      securities are received monthly, they are included based on the final      contractual maturity date, while equity securities have no stated maturity      and are excluded from the following tables.                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |

|                                        |   | June      30, 2010 |    |
|---------------------------------------------|--------|--------------------|---------|
|                                        |   | Amortized          |    |   | Estimated |   |
| in      thousands                           |   | Cost               |    |   | Fair      Value |   |
| Available-for-Sale      Securities          |   |               |    |   |   |   |
| Due      in One Year or Less                |   | $                  | 5,930   |   |   | $ | 5,965 |   |
| Due      After One Year Through Five Years  |   |               | 5,841   |   |   |   | 6,009 |   |
| Due      After Five Years Through Ten Years |   |               | 10,971  |   |   |   | 11,244 |   |
| Due      After Ten Years                    |   |               | 170,500 |   |   |   | 174,882 |   |
|                                        |   | $                  | 193,242 |   |   | $ | 198,100 |   |
|                                        |   |               |    |   |   |   |   |   |
|                                        |   | June      30, 2010 |    |
|                                        |   | Amortized          |    |   | Estimated |   |
| in      thousands                           |   | Cost               |    |   | Fair      Value |   |
| Held-to-Maturity      Securities            |   |               |    |   |   |   |   |   |
| Due      in One Year or Less                |   | $                  | 4,739   |   |   | $ | 4,824 |   |
| Due      After One Year Through Five Years  |   |               | 12,990  |   |   |   | 13,645 |   |
| Due      After Five Years Through Ten Years |   |               | 7,561   |   |   |   | 7,800 |   |
| Due      After Ten Years                    |   |               | 40,544  |   |   |   | 41,633 |   |
|                                        |   | $                  | 65,834  |   |   | $ | 67,902 |   |
|                                        |   |

----

| Note      3. Investment Securities, Continued                                                                                                                                                                                                                                                                                                                                  |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| Proceeds      from sales and calls of available-for sale investment securities were      $72.096 million and $54.889 million for the six months ended June 30, 2010      and 2009, respectively.  For the three months ended June 30,      2010, the Company recorded proceeds of $51.206 million and $38.330 million      for the three months ended June 30, 2009. |
|                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |
| The      following table sets forth information with regard to securities gains and      losses realized on sales or calls of available-for-sale and      held-to-maturity securities:                                                                                                                                                                                         |
|                                                                                                                                                                                                                                                                                                                                                                           |   |   |   |   |   |   |   |   |

|                                        |   | Three      Months Ended |   |   | Six      Months Ended |   |
|---------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
|                                        |   | June      30,           |   |   | June      30,         |   |
| in      thousands                           |   | 2010                    |   |   | 2009                  |   |   | 2010 |   |   | 2009 |   |
| Gross      Gains                            |   | $                       | 1,199  |   |                  | $      | 913 |   |   | $ | 1,789 |   |   | $ | 1,433 |   |
| Gross      Losses                           |   |                    | -      |   |                  |   | 1 |   |   |   | - |   |   |   | 1 |   |
|    Net      Securities Gains |   | $                       | 1,199  |   |                  | $      | 912 |   |   | $ | 1,789 |   |   | $ | 1,432 |   |
|                                        |   |                    |   |   |                  |   |   |   |   |   |   |   |   |   |   |   |

| Federal      Home Loan Bank of New York ("FHLBNY") and Federal Reserve Bank stock      totaling $3.959 million at June 30, 2010 and $4.039 million at December      31, 2009 is carried at cost as fair values are not readily      determinable.  Both investments are classified in other      investments on the Company's consolidated statements of condition and are      required for membership.  The FHLBNY common stock we own enables      us to borrow funds under the FHLBNY advance program and qualify for      membership.  As a member of the FHLBNY, the Company is required      to hold shares of Federal Home Loan Bank stock. The Company’s holding      requirement varies based on its activities, primarily its outstanding      borrowings, with the FHLBNY.  The Company’s investment in FHLBNY      stock is carried at cost.  The Company conducts a periodic      review and evaluation of its Federal Home Loan Bank stock to determine if      any impairment exists. The factors considered include, among other things,      significant deterioration in earnings performance, credit rating, asset      quality; significant adverse change in the regulatory or economic      environment; and other factors that raise significant concerns about the      ability for a Federal Home Loan Bank to continue as a going      concern. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |   |   |   |   |   |   |   |   |
| At      June 30, 2010, investment securities with an amortized cost of $230.865      million and an estimated fair value of $236.998 million were pledged as      collateral for certain public deposits, borrowings, and other purposes as      required or permitted by law.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           |

----

| Note      4. Allowance for Loan Losses                                                          |   |
|-------------------------------------------------------------------------------------------------|--------|
|                                                                                            |   |   |   |   |   |   |
| Changes      in the allowance for loan losses are presented in the following      summary:      |   |
|                                                                                            |   | June      30, |   |   | June      30, |   |
| in      thousands                                                                               |   | 2010 |   |   | 2009 |   |
| Balance      at Beginning of Year                                                               |   | $ | 8,622 |   |   | $ | 7,564 |   |
| Provision      for Loan Losses                                                                  |   |   | 2,675 |   |   |   | 2,150 |   |
| Recoveries      Credited                                                                        |   |   | 332 |   |   |   | 390 |   |
| Loans      Charged-Off                                                                          |   |   | (1,583 | ) |   |   | (1,266 | ) |
| Ending      Balance                                                                             |   | $ | 10,046 |   |   | $ | 8,838 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
| The      following provides information on impaired loans as of the following      period ends: |   |
|                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                            |   | June      30, |   |   | December      31, |   |
| in      thousands                                                                               |   |  2010 |   |   |  2009 |   |
| Impaired      Loans                                                                             |   | $ | 22,148 |   |   | $ | 12,957 |   |
| Allowance      for Impaired Loans                                                               |   |   | 1,142 |   |   |   | 721 |   |
|                                                                                            |   |   |   |   |   |   |   |   |
|                                                                                            |   |   |   |   |   |   |   |   |

| At      June 30, 2010, $9.540 million of the impaired loans had a specific reserve      allocation of $1.142 million compared to $5.844 million of impaired loans      at December 31, 2009 with a related reserve allocation of $721      thousand.  The average recorded investment in impaired loans for      the six months ended June 30, 2010 and 2009 were $17.110 million and      $10.392 million, respectively.  For the three months ended June      30, 2010 and 2009, the average recorded investment in impaired loans were      $19.186 million and $11.278 million, respectively. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |
| The      Company recorded interest income related to impaired loans of $7 thousand      and $17 thousand for the six months ended June 30, 2010 and 2009,      respectively.  For the three months ended June 30, 2010 and      2009, the Company recorded interest income related to impaired loans of $3      thousand and $8 thousand, respectively.                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  |   |   |   |

| The      following table sets forth information with regards to nonperforming      loans: |   |
|-------------------------------------------------------------------------------------------|--------|
|                                                                                      |   |   |   |
|                                                                                      |   | June      30, |   |   | December      31, |   |
| in      thousands                                                                         |   | 2010 |   |   | 2009 |   |
| Loans      in Nonaccrual Status                                                           |   | $ | 22,277 |   |   | $ | 12,149 |   |
| Loans      Contractually Past Due 90 Days or More and Still Accruing      Interest        |   |   | 152 |   |   |   | 731 |   |
| Total      Nonperforming Loans                                                            |   | $ | 22,429 |   |   | $ | 12,880 |   |
|                                                                                      |   |   |   |   |   |   |   |   |

| The      Company did not record any interest income related to nonaccrual loans for      the six months ended June 30, 2010 and 2009, respectively.  Had      the loans in nonaccrual status performed in accordance with their original      terms, additional interest income of $584 thousand and $336 thousand would      have been recorded for the six months ended June 30, 2010 and 2009,      respectively, and for the three months ended June 30, 2010 and 2009, the      Company would have recorded $342 thousand and $228 thousand,      respectively. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Note      6. Employee Benefit Plans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| The      Company's defined benefit pension plan has been frozen since February      2006.  Under the frozen plan, no future benefits will be accrued      for plan participants, nor will any new participants be enrolled in the      plan.  This plan is sponsored by the Company's bank      subsidiary.  Prior to being frozen, the plan covered employees      who had attained the age of 21 and completed one year of      service.  Although the plan was frozen, the Company maintains      the responsibility for funding the plan.  The Company's funding      practice is to contribute at least the minimum amount annually to meet      minimum funding requirements.  The funded status of the      Company’s defined benefit pension plan has and will continue to be      affected by market conditions.  We expect to continue to fund      this plan on an as needed basis and do not foresee any issues or      conditions that could negatively impact the payment of benefit obligations      to plan participants.  Plan assets consist primarily of      marketable fixed income securities and common stocks.  Plan      benefits are based on years of service and the employee’s average      compensation during the five highest consecutive years of the last ten      years of employment. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| The      Company also provides a split-dollar life insurance plan to former members      of senior management.  The Company is required to recognize the      post retirement aspects of an endorsement-type split-dollar life insurance      arrangement as a liability.  The benefit obligation is      re-evaluated annually and is recorded as a change to the Company's      liability with an offsetting amount recorded in other comprehensive      income.  The cost of insurance is recognized through the income      statement.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |
| The      components of net periodic benefit expense for pension and split-dollar      life insurance plans are:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |

|                                |   |                    |   |   | Split-Dollar      Life  |   |   |                  |   |   | Split-Dollar      Life |   |
|-------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|--------|-----------------------|--------|--------|------------------------|--------|
|                                |   | Pension      Benefit    |   |   | Insurance      Benefit  |   |   | Pension      Benefit  |   |   | Insurance      Benefit |   |
|                                |   |                    |   |   |                    |   |   |                  |   |   |                   |   |
|                                |   | Three      Months Ended |   |   | Three      Months Ended |   |   | Six      Months Ended |   |   | Six      Months Ended  |   |
|                                |   | June      30,           |   |   | June      30,           |   |   | June      30,         |   |   | June      30,          |   |
| in      thousands                   |   | 2010                    |   |   | 2009                    |   |   | 2010                  |   |   | 2009                   |   |   | 2010 |   |   | 2009 |   |   | 2010 |   |   | 2009 |   |
| Service      Cost                   |   | $                       | 32     |   |                    | $      | 38     |                  |   | $      | -                      |   |   | $ | 6 |   |   | $ | 64 |   |   | $ | 76 |   |   | $ | - |   |   | $ | 12 |   |
| Interest      Cost                  |   |                    | 239    |   |                    |   | 240    |                  |   |   | 15                     |   |   |   | 26 |   |   |   | 478 |   |   |   | 480 |   |   |   | 29 |   |   |   | 52 |   |
| Cost      of Insurance Payments     |   |                    | -      |   |                    |   | -      |                  |   |   | (14                    | )      |   |   | (11 | ) |   |   | - |   |   |   | - |   |   |   | (27 | ) |   |   | (22 | ) |
| Expected      Return on Plan Assets |   |                    | (334   | )      |                    |   | (279   | )                     |   |   | -                      |   |   |   | - |   |   |   | (668 | ) |   |   | (558 | ) |   |   | - |   |   |   | - |   |
| Net      Amortization               |   |                    | 82     |   |                    |   | 119    |                  |   |   | 1                      |   |   |   | - |   |   |   | 164 |   |   |   | 237 |   |   |   | 1 |   |   |   | - |   |
|                                |   | $                       | 19     |   |                    | $      | 118    |                  |   | $      | 2                      |   |   | $ | 21 |   |   | $ | 38 |   |   | $ | 235 |   |   | $ | 3 |   |   | $ | 42 |   |

| For      the three months ended June 30, 1010, the Company recorded, net of tax, as      amortization of pension amounts previously recognized in accumulated other      comprehensive income $50 thousand, as compared to $73 thousand for the      three months ending June 30, 2009.  For the six months ended      June 30, 2010, the Company recorded, net of tax, as amortization of      pension amounts previously recognized in accumulated other comprehensive      income $101 thousand, as compared to $146 thousand for the six months      ending June 30,2009. |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Note      7. Other Comprehensive Income                                                                  |
|----------------------------------------------------------------------------------------------------------|
|                                                                                                     |   |   |   |   |   |   |   |   |
| The      following is a summary of changes in other comprehensive income for the      periods presented: |

|                                                                                                                                                                                                                 |   | Three      Months Ended |   |   | Six      Months Ended |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------------|--------|--------|-----------------------|--------|
|                                                                                                                                                                                                                 |   | June      30,           |   |   | June      30,         |   |
| in      thousands                                                                                                                                                                                                    |   | 2010                    |   |   | 2009                  |   |   | 2010 |   |   | 2009 |   |
| Unrealized      Holding Gains Arising During the Period, Net of Tax          (Pre-tax Amount of $4,702, $453, $5,486 and $1,714)                                                                 |   | $                       | 2,883  |   |                  | $      | 277 |   |   | $ | 3,364 |   |   | $ | 1,050 |   |
| Reclassification      Adjustment for Gains Realized in Net Income          During the Period, Net of Tax (Pre-tax Amount of ($1,199),          ($912), ($1,789) and ($1,432) |   |                    | (735   | )      |                  |   | (559 | ) |   |   | (1,097 | ) |   |   | (878 | ) |
| Change      in Pension Asset (Pre-tax Amount of $82, $119, $164 and    $237)                                                                                                                                         |   |                    | 50     |   |                  |   | 73 |   |   |   | 101 |   |   |   | 146 |   |
| Other      Comprehensive Income                                                                                                                                                                                      |   | $                       | 2,198  |   |                  | $      | (209 | ) |   | $ | 2,368 |   |   | $ | 318 |   |

----

| Note      8. Disclosures about Fair Value of Financial Instruments                                                                                                                                                                                                                                    |   |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|
|                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |
| The      following are the major categories of assets measured at fair value on a      recurring basis at June 30, 2010 using quoted prices in active markets for      identical assets (Level 1), significant other observable inputs (Level 2),      and significant unobservable inputs (Level 3). |
|                                                                                                                                                                                                                                                                                                  |   |   |   |   |   |   |   |

|                                                  |   | Level      1       |   |   |         |   |    |         |   |   |          |   |
|-------------------------------------------------------|--------|--------------------|--------|--------|--------------|--------|---------|--------------|--------|--------|---------------|--------|
|                                                  |   | Quoted             |   |   |         |   |    |         |   |   |          |   |
|                                                  |   | Prices      in     |   |   | Level      2 |   |    |         |   |   |          |   |
|                                                  |   | Active             |   |   | Significant  |   |    | Level      3 |   |   |          |   |
|                                                  |   | Markets            |   |   | Other        |   |    | Significant  |   |   | Total      at |   |
|                                                  |   | for      Identical |   |   | Observable   |   |    | Unobservable |   |   | June      30, |   |
| in      thousands                                     |   | Assets             |   |   | Inputs       |   |    | Inputs       |   |   | 2010          |   |
| Trading      securities                               |   |               |   |   |         |   |    |         |   |   |          |   |
| Cash      and equivalents                             |   | $                  | 85     |   |         |   |    |         |   |   |          | $      | 85 |   |
| Fixed      income securities                          |   |               | 261    |   |         |   |    |         |   |   |          |   | 261 |   |
| Equity      securities                                |   |               | 657    |   |         |   |    |         |   |   |          |   | 657 |   |
| Total      trading securities                         |   | $                  | 1,003  |   |         |   |    |         |   |   |          | $      | 1,003 |   |
|                                                  |   |               |   |   |         |   |    |         |   |   |          |   |   |   |
| Available-for-sale      debt securities               |   |               |   |   |         |   |    |         |   |   |          |   |   |   |
| Obligations      of states and political subdivisions |   |               |   |   |         | $      | 31,692  |         |   |   |          |   | $ | 31,692 |   |
| Mortgage-backed      securities                       |   |               |   |   |         |   | 166,408 |         |   |   |          |   |   | 166,408 |   |
| Total      available-for-sale debt securities         |   | $                  | -      |   |         | $      | 198,100 |         |   | $      | -             |   |   | $ | 198,100 |   |
|                                                  |   |               |   |   |         |   |    |         |   |   |          |   |   |   |   |   |
| Available-for-sale      equity securities             |   |               |   |   |         |   |    |         |   |   |          |   |   |   |   |   |
| Financial      services industry                      |   |               |   |   |         | $      | 50      |         |   |   |          |   |   | $ | 50 |   |
| Other                                                 |   | $                  | 204    |   |         |   |    |         |   |   |          |   |   |   | 204 |   |
| Total      available-for-sale equity securities       |   | $                  | 204    |   |         | $      | 50      |         |   | $      | -             |   |   | $ | 254 |   |
|                                                  |   |               |   |   |         |   |    |         |   |   |          |   |   |   |   |   |

| Price      evaluations for our level 1 trading securities portfolio, consisting of      mutual funds and individual equity and debt securities held by the      Company’s executive deferred compensation plan, are obtained from national      exchanges and active secondary markets.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Price      evaluations for our level 2 available-for-sale debt securities are good      faith opinions as to what a buyer in the marketplace would pay for a      security (typically in an institutional round lot position) in a current      sale.  The evaluation considers interest rate movements, new      issue information, and other pertinent data.  Fair values for      investments were based on quoted market prices, where available, as      provided by third party vendors.  If quoted market prices were      not available, fair values provided by the vendors were based on quoted      market prices of comparable instruments in active markets and/or based on      a matrix pricing methodology that employs the Securities Industry and      Financial Markets Association standard calculations for cash flow and      price/yield analysis, or live benchmark bond pricing, or terms/conditions      data available from major pricing sources. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| The      Company's single level 2 available-for-sale equity security is in a thinly      traded market comprised of banks.  The price evaluation for this      equity security represents an opinion within this market as to what a      buyer would pay for this security.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| The      Company reported no significant transfers in and out of Levels 1 and 2      during the first two quarters of 2010.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        |   |   |   |   |   |   |   |
| Disclosure      is required of assets and liabilities measured and recorded at fair value      on a non-recurring basis.  For the Company, these include loans      held for sale, collateral dependent impaired loans, other real estate      owned, goodwill and other intangible assets.  The following      table details the fair value of those asset categories measured during the      six-month period ended June 30,2010:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |

----

| Note      8. Disclosures about Fair Value of Financial Instruments,      Continued |   |
|------------------------------------------------------------------------------------|--------|
|                                                                               |   |
|                                                                               |   | Level      1 |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   | Quoted |   |   |   |   |   |   |   |   |   |   |
|                                                                               |   | Prices      in |   |   | Level      2 |   |   |   |   |   |   |   |
|                                                                               |   | Active |   |   | Significant |   |   | Level      3 |   |   |   |   |
|                                                                               |   | Markets |   |   | Other |   |   | Significant |   |   | Total |   |
|                                                                               |   | for      Identical |   |   | Observable |   |   | Unobservable |   |   | Gain |   |
| in      thousands                                                                  |   | Assets |   |   | Inputs |   |   | Inputs |   |   | (Loss) |   |
| Loans      Held for Sale                                                           |   |   |   |   | $ | 2,300 |   |   |   |   |   | $ | (300 | ) |
| Other      Real Estate Owned                                                       |   | $ | - |   |   |   |   |   |   | $ | 1,652 |   |   | $ | 69 |   |
| Collateral      Dependent Impaired Loans                                           |   |   |   |   |   |   |   |   |   | $ | 8,093 |   |   | $ | (901 | ) |
|                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| A      commercial loan with a carrying amount of $2.600 million was written down      to its fair value of $2.300 million, resulting in a charge off of $300      thousand which was recorded in the allowance for loan      losses.  Fair value was based on the contracted sales      price.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Through      the six-month period ended June 30, 2010, the Company received four      properties recorded as other real estate owned with a combined fair value      of $1.652 million in exchange for full settlement of loans.  As      a result, the impact to the allowance for loan and lease losses was a net      charge of $64 thousand due to the transfer of three of the properties and      a net increase to earnings of $133 thousand due to the transfer of the      fourth property.                                                                                                                                                                                                                                                                                                                                                                                                                                                                   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| During      the year, specific reserves of $900 thousand were recorded in the      allowance for loan losses to recorded collateral-depended impaired loans      with a carrying value of $8.994 million at their fair value of $8.093      million. Fair value of the underlying collateral is determined primarily      on independent appraisals less estimated costs to      sell.  Adjustments to the appraised values are made when changes      in the condition of the collateral warrant.                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
| Disclosure      is required of fair value information about financial instruments, whether      or not recognized in the consolidated statement of condition, for which it      is practicable to estimate that value. In cases where quoted market prices      are not available, fair values are based on estimates using present value      or other valuation techniques. Those techniques are significantly affected      by the assumptions used, including the discount rate and estimates of      future cash flows. In that regard, the derived fair value estimates cannot      be substantiated by comparison to independent markets and in many cases,      could not be realized in immediate settlement of the instruments. Certain      financial instruments and all nonfinancial instruments are excluded from      disclosure requirements. Accordingly, the aggregate fair value amounts      presented do not represent the underlying value of the    Bank. |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| The      following methods and assumptions were used to estimate the fair value of      each class of financial instruments:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Short-Term      Financial Instruments                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
| The      fair value of certain financial instruments is estimated to approximate      their carrying value because the remaining term to maturity of the      financial instrument is less than 90 days or the financial instrument      reprices in 90 days or less.  Such financial instruments include      cash and due from banks, Federal Funds sold, accrued interest receivable      and accrued interest payable.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| The      fair value of time deposits with other banks is estimated using discounted      cash flow analysis based on the Company's current reinvestment rate for      similar deposits.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                          |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Securities                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |   |   |   |   |   |
| Fair      values for investments were based on quoted market prices, where      available, as provided by third party vendors.  If quoted market      prices were not available, fair values provided by the vendors were based      on quoted market prices of comparable instruments in active markets and/or      based on a matrix pricing methodology that employs the Securities Industry      and Financial Markets Association standard calculations for cash flow and      price/yield analysis, or live benchmark bond pricing, or terms/conditions      data available from major pricing sources.  The fair value of      other investments is estimated at their carrying value.                                                                                                                                                                                                                                                                |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Loans      Held for Sale                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |   |   |   |   |   |
| The      fair value of loans held for sale approximates the carrying      value.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             |   |   |   |   |   |   |   |
| Loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            |   |   |   |   |   |   |
| The      fair value of loans is estimated by discounting the future cash flows      using the current rates at which similar loans would be made to borrowers      with similar credit ratings and for the same remaining      maturities.                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |

----

| Note      8. Disclosures about Fair Value of Financial Instruments,      Continued                                                                                                                                                                                                                                                                                                                                      |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Deposits                                                                                                                                                                                                                                                                                                                                                                                                                |   |   |   |   |   |   |
| The      fair value of demand deposits, savings accounts, and certain NOW and money      market deposits is the amount payable on demand at the reporting date. The      fair value of fixed-maturity time deposits is estimated using the rates      currently offered for deposits of similar remaining      maturities.                                                                                              |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| Borrowings                                                                                                                                                                                                                                                                                                                                                                                                              |   |   |   |   |   |   |
| The      fair value of repurchase agreements, short-term borrowings, and long-term      borrowings is estimated using discounted cash flow analysis based on the      Company's current incremental borrowing rate for similar borrowing      arrangements.                                                                                                                                                             |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Off-Balance      Sheet Instruments                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |
| The      fair value of outstanding loan commitments and standby letters of credit      are based on fees currently charged to enter into similar agreements,      taking into account the remaining terms of the agreements, the counter      parties' credit standing and discounted cash flow analysis. The fair value      of these instruments approximates the value of the related fees and is not      material. |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |   |
| The      carrying values and estimated fair values of the Company’s financial      instruments are as follows:                                                                                                                                                                                                                                                                                                    |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   |   |   |   |   |   |

|                                                  |   | June      30, 2010 |    |   | December      31, 2009 |   |
|-------------------------------------------------------|--------|--------------------|---------|--------|------------------------|--------|
|                                                  |   | Carrying           |    |   | Fair                   |   |   | Carrying |   |   | Fair |   |
| dollars      in thousands                             |   | Value              |    |   | Value                  |   |   | Value |   |   | Value |   |
| Financial      Assets:                                |   |               |    |   |                   |   |   |   |   |   |   |   |
| Cash      and Cash Equivalents                        |   | $                  | 63,487  |   |                   | $      | 63,487 |   |   | $ | 34,043 |   |   | $ | 34,043 |   |
| Trading      Securities                               |   |               | 1,003   |   |                   |   | 1,003 |   |   |   | 1,165 |   |   |   | 1,165 |   |
| Available-for-Sale                                    |   |               | 198,354 |   |                   |   | 198,354 |   |   |   | 173,302 |   |   |   | 173,302 |   |
| Held-to-Maturity                                      |   |               | 65,834  |   |                   |   | 67,902 |   |   |   | 69,391 |   |   |   | 70,147 |   |
| Other      Investments                                |   |               | 5,857   |   |                   |   | 5,857 |   |   |   | 5,941 |   |   |   | 5,941 |   |
| Securities                                            |   |               | 271,048 |   |                   |   | 273,116 |   |   |   | 249,799 |   |   |   | 250,555 |   |
| Loans      Held for Sale                              |   |               | 3,210   |   |                   |   | 3,210 |   |   |   | 576 |   |   |   | 576 |   |
|    Residential      real estate      1 |   |               | 177,930 |   |                   |   | 179,914 |   |   |   | 177,720 |   |   |   | 178,241 |   |
|    Commercial      real estate         |   |               | 229,285 |   |                   |   | 231,842 |   |   |   | 240,823 |   |   |   | 241,530 |   |
|    Commercial      2                   |   |               | 88,275  |   |                   |   | 89,259 |   |   |   | 93,928 |   |   |   | 94,204 |   |
|    Consumer                            |   |               | 64,298  |   |                   |   | 65,015 |   |   |   | 74,766 |   |   |   | 74,985 |   |
| Loans                                                 |   |               | 559,788 |   |                   |   | 566,031 |   |   |   | 587,237 |   |   |   | 588,960 |   |
| Allowance      for Loan Losses                        |   |               | (10,046 | )      |                   |   | (10,046 | ) |   |   | (8,622 | ) |   |   | (8,622 | ) |
| Net      Loans                                        |   |               | 549,742 |   |                   |   | 555,985 |   |   |   | 578,615 |   |   |   | 580,338 |   |
| Accrued      Interest Receivable                      |   |               | 2,906   |   |                   |   | 2,906 |   |   |   | 3,007 |   |   |   | 3,007 |   |
| Financial      Liabilities:                           |   |               |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |
| Demand                                                |   | $                  | 68,349  |   |                   | $      | 68,349 |   |   | $ | 70,437 |   |   | $ | 70,437 |   |
| Savings,      NOW and Money Market Deposit Accounts   |   |               | 372,751 |   |                   |   | 372,751 |   |   |   | 365,908 |   |   |   | 365,908 |   |
| Certificates      of Deposit                          |   |               | 310,610 |   |                   |   | 318,642 |   |   |   | 290,696 |   |   |   | 299,886 |   |
| Other      Deposits                                   |   |               | 26,823  |   |                   |   | 26,823 |   |   |   | 26,699 |   |   |   | 26,699 |   |
| Borrowings                                            |   |               | 68,055  |   |                   |   | 71,012 |   |   |   | 73,589 |   |   |   | 76,674 |   |
| Accrued      Interest Payable                         |   |               | 809     |   |                   |   | 809 |   |   |   | 782 |   |   |   | 782 |   |
|                                                  |   |               |    |   |                   |   |   |   |   |   |   |   |   |   |   |   |

| (1)Includes loans secured by 1-4      family residential dwellings, 5+ family residential dwellings, home equity      loans and residential construction loans.  Excludes residential      mortgage loans held for sale. |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)Includes commercial and      industrial loans, agricultural loans and obligations (other than      securities and leases) of states and political subdivisions in the United      States                                        |

| Note      9. Stock Plans and Stock Based Compensation                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
| The      Company awarded 3,186 restricted stock awards during the first quarter      2010, with a grant date fair value of $6.59, which was the closing price      of the Company's common stock on the grant date.  Prior to 2010      there were no restricted stock awards.  At June 30, 2010, the      Company recognized stock-based compensation related to these restricted      stock awards of $1 thousand and unrecognized compensation costs totaling      $19 thousand will be recognized over fouryears. |

----

E

----

----

|                                                         |   | For      the Three Months Ended June 30, |    |
|--------------------------------------------------------------|--------|------------------------------------------|---------|
|                                                         |   | 2010                                     |    |   | 2009 |   |
|                                                         |   | AverageOutstandingBalance                |    |   | InterestEarned      /Paid |   |   | Yield      / Rate |   |   | AverageOutstandingBalance |   |   | InterRestEarned      /Paid |   |   | Yield      / Rate |   |
|                                                         |   | (in      thousands)                      |    |
| Earning      Assets:                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      funds sold                                      |   | $                                        | 1,120   |   |   | $ | 1 |   |   |   | 0.36 | % |   | $ | 522 |   |   | $ | - |   |   |   | 0.00 | % |
| Interest      bearing deposits                               |   |                                     | 29,834  |   |   |   | 20 |   |   |   | 0.27 | % |   |   | 27,879 |   |   |   | 18 |   |   |   | 0.26 | % |
| Securities      (1)                                          |   |                                     | 291,742 |   |   |   | 2,750 |   |   |   | 3.78 | % |   |   | 274,432 |   |   |   | 2,906 |   |   |   | 4.25 | % |
| Loans      (2)                                               |   |                                     | 567,920 |   |   |   | 8,033 |   |   |   | 5.67 | % |   |   | 602,911 |   |   |   | 8,841 |   |   |   | 5.88 | % |
| Total      earning assets                                    |   |                                     | 890,616 |   |   |   | 10,804 |   |   |   | 4.87 | % |   |   | 905,744 |   |   |   | 11,765 |   |   |   | 5.21 | % |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonearning      assets                                       |   |                                     | 42,649  |   |   |   |   |   |   |   |   |   |   |   | 35,064 |   |   |   |   |   |   |   |   |   |
| Total      assets                                            |   | $                                        | 933,265 |   |   |   |   |   |   |   |   |   |   | $ | 940,808 |   |   |   |   |   |   |   |   |   |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                 |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      accounts                                        |   | $                                        | 73,384  |   |   | $ | 47 |   |   |   | 0.26 | % |   | $ | 69,830 |   |   | $ | 55 |   |   |   | 0.32 | % |
| Money      market accounts                                   |   |                                     | 174,163 |   |   |   | 197 |   |   |   | 0.45 | % |   |   | 204,906 |   |   |   | 525 |   |   |   | 1.03 | % |
| NOW      accounts                                            |   |                                     | 125,536 |   |   |   | 147 |   |   |   | 0.47 | % |   |   | 118,891 |   |   |   | 255 |   |   |   | 0.86 | % |
| Time      & other deposit accounts                       |   |                                     | 339,701 |   |   |   | 1,891 |   |   |   | 2.23 | % |   |   | 329,759 |   |   |   | 2,319 |   |   |   | 2.82 | % |
| Borrowings                                                   |   |                                     | 69,188  |   |   | 660 |   |   |   | 3.83 | % |   |   | 71,711 |   |   | 672 |   |   |   | 3.76 | % |
| Total      interest bearing liabilities                      |   |                                     | 781,972 |   |   |   | 2,942 |   |   |   | 1.51 | % |   |   | 795,097 |   |   |   | 3,826 |   |   |   | 1.93 | % |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      bearing deposits                            |   |                                     | 70,300  |   |   |   |   |   |   |   |   |   |   |   | 69,535 |   |   |   |   |   |   |   |   |   |
| Other      noninterest bearing liabilities                   |   |                                     | 5,923   |   |   |   |   |   |   |   |   |   |   |   | 7,785 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                       |   |                                     | 858,195 |   |   |   |   |   |   |   |   |   |   |   | 872,417 |   |   |   |   |   |   |   |   |   |
| Shareholders'      equity                                    |   |                                     | 75,070  |   |   |   |   |   |   |   |   |   |   |   | 68,391 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareholders' equity              |   | $                                        | 933,265 |   |   |   |   |   |   |   |   |   |   | $ | 940,808 |   |   |   |   |   |   |   |   |   |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                                     |   |                                     |    |   |   | $ | 7,862 |   |   |   |   |   |   |   |   |   |   | $ | 7,939 |   |   |   |   |   |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest rate spread (3)                            |   |                                     |    |   |   |   |   |   |   |   | 3.36 | % |   |   |   |   |   |   |   |   |   |   | 3.28 | % |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earning assets                                      |   | $                                        | 108,644 |   |   |   |   |   |   |   |   |   |   | $ | 110,647 |   |   |   |   |   |   |   |   |   |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest margin (4)                                 |   |                                     |    |   |   |   |   |   |   |   | 3.54 | % |   |   |   |   |   |   |   |   |   |   | 3.52 | % |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest margin (tax-equivalent)                    |   |                                     |    |   |   |   |   |   |   |   | 3.61 | % |   |   |   |   |   |   |   |   |   |   | 3.67 | % |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of earning assets to interest bearing liabilities |   |                                     | 113.89  | % |   |   |   |   |   |   |   |   |   |   | 113.92 | % |   |   |   |   |   |   |   |   |
|                                                         |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)      Securities include trading, available-for-sale, held-to-maturity and other      investments.  They are shown at average amortized cost with net      unrealized gains or losses on securities available-for-sale included as a      component of nonearning assets. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)      Average loans include loans held for sale, net deferred loan fees and      costs, nonaccrual loans and excludes the allowance for loan      losses.                                                                                                                           |
| (3)      Net interest rate spread represents the difference between the weighted      average yield on interest-earning assets and the weighted average cost of      interest-bearing liabilities.                                                                                     |
| (4)      The net interest margin, also known as the net yield on average      interest-earning assets, represents net interest income as a percentage of      average interest-earningassets.                                                                                          |

----

|                                                         |   | For      the Six Months Ended June 30, |    |
|--------------------------------------------------------------|--------|----------------------------------------|---------|
|                                                         |   | 2010                                   |    |   | 2009 |   |
|                                                         |   | AverageOutstandingBalance              |    |   | InterestEarned      /Paid |   |   | Yield      / Rate |   |   | AverageOutstandingBalance |   |   | InterestEarned      /Paid |   |   | Yield      / Rate |   |
|                                                         |   | (in      thousands)                    |    |
| Earning      Assets:                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Federal      funds sold                                      |   | $                                      | 1,082   |   |   | $ | 1 |   |   |   | 0.19 | % |   | $ | 482 |   |   | $ | - |   |   |   | 0.00 | % |
| Interest      bearing deposits                               |   |                                   | 34,888  |   |   |   | 39 |   |   |   | 0.23 | % |   |   | 31,231 |   |   |   | 32 |   |   |   | 0.21 | % |
| Securities      (1)                                          |   |                                   | 276,756 |   |   |   | 5,262 |   |   |   | 3.83 | % |   |   | 271,902 |   |   |   | 5,763 |   |   |   | 4.27 | % |
| Loans      (2)                                               |   |                                   | 575,690 |   |   | 16,493 |   |   |   | 5.78 | % |   |   | 598,547 |   |   | 17,737 |   |   |   | 5.98 | % |
| Total      earning assets                                    |   |                                   | 888,416 |   |   |   | 21,795 |   |   |   | 4.95 | % |   |   | 902,162 |   |   |   | 23,532 |   |   |   | 5.26 | % |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonearning      assets                                       |   |                                   | 43,295  |   |   |   |   |   |   |   |   |   |   |   | 35,719 |   |   |   |   |   |   |   |   |   |
| Total      assets                                            |   | $                                      | 931,711 |   |   |   |   |   |   |   |   |   |   | $ | 937,881 |   |   |   |   |   |   |   |   |   |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities:                                                 |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings      accounts                                        |   | $                                      | 72,751  |   |   | $ | 92 |   |   |   | 0.26 | % |   | $ | 68,870 |   |   | $ | 119 |   |   |   | 0.35 | % |
| Money      market accounts                                   |   |                                   | 177,020 |   |   |   | 410 |   |   |   | 0.47 | % |   |   | 193,428 |   |   |   | 1,189 |   |   |   | 1.24 | % |
| NOW      accounts                                            |   |                                   | 126,811 |   |   |   | 298 |   |   |   | 0.47 | % |   |   | 110,742 |   |   |   | 483 |   |   |   | 0.88 | % |
| Time      & other deposit accounts                       |   |                                   | 333,769 |   |   |   | 3,685 |   |   |   | 2.23 | % |   |   | 344,453 |   |   |   | 5,136 |   |   |   | 3.01 | % |
| Borrowings                                                   |   |                                   | 71,500  |   |   | 1,328 |   |   |   | 3.75 | % |   |   | 75,406 |   |   | 1,374 |   |   |   | 3.67 | % |
| Total      interest bearing liabilities                      |   |                                   | 781,851 |   |   |   | 5,813 |   |   |   | 1.50 | % |   |   | 792,899 |   |   |   | 8,301 |   |   |   | 2.11 | % |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Noninterest      bearing deposits                            |   |                                   | 69,532  |   |   |   |   |   |   |   |   |   |   |   | 68,913 |   |   |   |   |   |   |   |   |   |
| Other      noninterest bearing liabilities                   |   |                                   | 5,846   |   |   |   |   |   |   |   |   |   |   |   | 8,076 |   |   |   |   |   |   |   |   |   |
| Total      liabilities                                       |   |                                   | 857,229 |   |   |   |   |   |   |   |   |   |   |   | 869,888 |   |   |   |   |   |   |   |   |   |
| Shareholders'      equity                                    |   |                                   | 74,482  |   |   |   |   |   |   |   |   |   |   |   | 67,993 |   |   |   |   |   |   |   |   |   |
| Total      liabilities and shareholders' equity              |   | $                                      | 931,711 |   |   |   |   |   |   |   |   |   |   | $ | 937,881 |   |   |   |   |   |   |   |   |   |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest income                                     |   |                                   |    |   |   | $ | 15,982 |   |   |   |   |   |   |   |   |   |   | $ | 15,231 |   |   |   |   |   |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest rate spread (3)                            |   |                                   |    |   |   |   |   |   |   |   | 3.45 | % |   |   |   |   |   |   |   |   |   |   | 3.15 | % |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      earning assets                                      |   | $                                      | 106,565 |   |   |   |   |   |   |   |   |   |   | $ | 109,263 |   |   |   |   |   |   |   |   |   |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest margin (4)                                 |   |                                   |    |   |   |   |   |   |   |   | 3.63 | % |   |   |   |   |   |   |   |   |   |   | 3.40 | % |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net      interest margin (tax-equivalent)                    |   |                                   |    |   |   |   |   |   |   |   | 3.75 | % |   |   |   |   |   |   |   |   |   |   | 3.57 | % |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of earning assets to interest bearing liabilities |   |                                   | 113.63  | % |   |   |   |   |   |   |   |   |   |   | 113.78 | % |   |   |   |   |   |   |   |   |
|                                                         |   |                                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

| (1)      Securities include trading, available-for-sale, held-to-maturity and other      investments.  They are shown at average amortized cost with net      unrealized gains or losses on securities available-for-sale included as a      component of nonearning assets. |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2)      Average loans include loans held for sale, net deferred loan fees and      costs, nonaccrual loans and excludes the allowance for loan      losses.                                                                                                                           |
| (3)      Net interest rate spread represents the difference between the weighted      average yield on interest-earning assets and the weighted average cost of      interest-bearing liabilities.                                                                                     |
| (4)      The net interest margin, also known as the net yield on average      interest-earning assets, represents net interest income as a percentage of      average interest-earning assets.                                                                                         |

----

|                                                                                                |   | At      June 30, 2010 |   |   | At      December 31,2009 |   |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------|--------|--------|--------------------------|--------|
|                                                                                                |   | (in      thousands)        |   |
| Loans      in nonaccrual status:                                                                    |   |                       |   |   |                     |   |
|    Residential      real estate      (1)                                             |   | $                          | 1,829  |   |                     | $      | 702 |   |
|    Commercial      real estate                                                       |   |                       | 18,917 |   |                     |   | 9,843 |   |
|    Commercial      (2)                                                               |   |                       | 1,489  |   |                     |   | 1,568 |   |
|    Consumer                                                                          |   |                       | 42     |   |                     |   | 36 |   |
| Total      nonaccruing loans                                                                        |   |                       | 22,277 |   |                     |   | 12,149 |   |
| Loans      contractually past due 90 days or more and still   accruing      interest |   |                       | 152    |   |                     |   | 731 |   |
| Troubled      debt restructured loans                                                               |   |                       | -      |   |                     |   | - |   |
| Total      nonperforming loans                                                                      |   |                       | 22,429 |   |                     |   | 12,880 |   |
| Other      real estate owned (3)                                                                    |   |                       | 2,063  |   |                     |   | 1,961 |   |
| Total      nonperforming assets                                                                     |   | $                          | 24,492 |   |                     | $      | 14,841 |   |
| Total      nonperforming assets as a percentage of total assets                                     |   |                       | 2.64   | %      |                     |   | 1.64 | % |
| Total      nonperforming loans as a percentage of total loans                                       |   |                       | 4.01   | %      |                     |   | 2.19 | % |

|                                                                                                                                                                                                                                     |
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)      Includes loans secured by 1-4 family residential dwellings, 5+ family      residential dwellings, home equity loans and residential construction      loans.  Excludes residential mortgage loans held for      sale. |
| (2)      Includes commercial and industrial loans, agricultural loans and      obligations (other than securities and leases) of states and political      subdivisions in the United States                                             |
| (3)      Includes only properties and assets recorded through in-substance      foreclosure, voluntary deed transfer, legal foreclosure or similar      proceedings.                                                                     |

----

|                                                                                                                                                                                          |   | Three      months endedJune      30, |   |   | Six      months endedJune      30, |   |
|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------------------|--------|--------|------------------------------------|--------|
|                                                                                                                                                                                          |   | 2010                                 |   |   | 2009                               |   |   | 2010 |   |   | 2009 |   |
|                                                                                                                                                                                          |   | (in      thousands)                  |   |   | (in      thousands)                |   |
|                                                                                                                                                                                          |   |                                 |   |   |                               |   |   |   |   |   |   |   |
| Balance      at beginning of period                                                                                                                                                           |   | $                                    | 8,862  |   |                               | $      | 8,491 |   |   | $ | 8,622 |   |   | $ | 7,564 |   |
|                                                                                                                                                                                          |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Charge      offs:                                                                                                                                                                             |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Residential      real estate (1)                                                                                                                                                              |   |                                 | 82     |   |                               |   | - |   |   |   | 218 |   |   |   | - |   |
| Commercial      real estate                                                                                                                                                                   |   |                                 | 471    |   |                               |   | 475 |   |   |   | 575 |   |   |   | 475 |   |
| Commercial      (2)                                                                                                                                                                           |   |                                 | 59     |   |                               |   | 36 |   |   |   | 152 |   |   |   | 68 |   |
| Consumer                                                                                                                                                                                      |   |                                 | 210    |   |                               |   | 323 |   |   |   | 639 |   |   |   | 723 |   |
|        Total      charge offs                                                                                                                              |   |                                 | 822    |   |                               |   | 834 |   |   |   | 1,584 |   |   |   | 1,266 |   |
|                                                                                                                                                                                          |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Recoveries:                                                                                                                                                                                   |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Residential      real estate (1)                                                                                                                                                              |   |                                 | 11     |   |                               |   | 8 |   |   |   | 11 |   |   |   | 8 |   |
| Commercial      real estate                                                                                                                                                                   |   |                                 | 7      |   |                               |   | 69 |   |   |   | 7 |   |   |   | 69 |   |
| Commercial      (2)                                                                                                                                                                           |   |                                 | 17     |   |                               |   | 29 |   |   |   | 39 |   |   |   | 35 |   |
| Consumer                                                                                                                                                                                      |   |                                 | 96     |   |                               |   | 125 |   |   |   | 276 |   |   |   | 278 |   |
|         Total      recoveries                                                                                                                         |   |                                 | 131    |   |                               |   | 231 |   |   |   | 333 |   |   |   | 390 |   |
|                                                                                                                                                                                          |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Net      charge-offs                                                                                                                                                                          |   |                                 | 691    |   |                               |   | 603 |   |   |   | 1,251 |   |   |   | 876 |   |
| Provision      for loan losses                                                                                                                                                                |   |                                 | 1,875  |   |                               |   | 950 |   |   |   | 2,675 |   |   |   | 2,150 |   |
| Balance      at end of period                                                                                                                                                                 |   | $                                    | 10,046 |   |                               | $      | 8,838 |   |   | $ | 10,046 |   |   | $ | 8,838 |   |
|                                                                                                                                                                                          |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Ratio      of net charge-offs during the period to average   loans      outstanding during the period (annualized)                                                             |   |                                 | 0.49   | %      |                               |   | 0.40 | % |   |   | 0.44 | % |   |   | 0.30 | % |
|                                                                                                                                                                                          |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses to total loans                                                                                                                                                 |   |                                 | 1.79   | %      |                               |   | 1.46 | % |   |   | 1.79 | % |   |   | 1.46 | % |
|                                                                                                                                                                                          |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| Allowance      for loan losses to nonperforming loans                                                                                                                                         |   |                                 | 45     | %      |                               |   | 74 | % |   |   | 45 | % |   |   | 74 | % |
|                                                                                                                                                                                          |   |                                 |   |   |                               |   |   |   |   |   |   |   |   |   |   |   |
| (1)      Includes loans secured by 1-4 family dwellings, 5+ family residential      dwellings, home equity loans and residential construction      loans.                                     |   |
| (2)      Includes commercial and industrial loans, agricultural loans and      obligations (other than securities and leases) of states and political      subdivisions in the United States. |   |

----

----

|                                                                                | Period      Ended  |
|-------------------------------------------------------------------------------------|--------------------|
|                                                                                | 2010               | 2009 |
|                                                                                | June      30       | March      31 | Dec.      31 | Sept.      30 | June      30 | March      31 |
| (in      thousands)                                                                 |               |   |   |   |   |   |
| Total      nonperforming loans                                                      | $22,429            | $14,018 | $12,880 | $12,108 | $12,016 |  $7,324 |
| Change      in nonperforming loans   from      prior quarter-end     |  $      8,411 |  $      1,138 |  $    772 |  $      92 |  $      4,692 |  $   113 |
|                                                                                |               |   |   |   |   |   |
| Total      nonperforming loans as a   percentage      of total loans | 4.01%              | 2.43% | 2.19% | 2.03% | 1.98% | 1.22% |

----

----

|                            |   | June      30, 2010 |   |   |    |   |
|---------------------------------|--------|--------------------|--------|--------|---------|--------|
|                            |   | Outstanding        |   |   |    |   |
| (in      thousands)             |   | Balance            |   |   | Percent |   |
| Less      than 30 days past due |   | $                  | 9,215  |   |    |   | 41.1 | % |
| 30      to 89 days past due     |   |               | 5,978  |   |    |   | 26.6 | % |
| 90      or more days past due   |   |               | 7,236  |   |    |   | 32.3 | % |
| Total      nonperforming loans  |   | $                  | 22,429 |   |    |   | 100.0 | % |

----

----

----

|                                    |   | For      the Three Months EndedJune      30, |   |
|-----------------------------------------|--------|----------------------------------------------|--------|
|                                    |   | 2010      vs. 2009                           |   |
|                                    |   | Rate                                         |   |   | Volume |   |   | Total |   |
|                                    |   | (in      thousands)                          |   |
| Earning      assets:                    |   |                                         |   |   |   |   |   |   |   |
| Federal      Funds Sold                 |   | $                                            | 1      |   |   | $ | - |   |   | $ | 1 |   |
| Interest      Bearing Deposits          |   |                                         | 1      |   |   |   | 1 |   |   |   | 2 |   |
| Securities                              |   |                                         | (332   | ) |   |   | 176 |   |   |   | (156 | ) |
| Loans                                   |   |                                         | (306   | ) |   |   | (502 | ) |   |   | (808 | ) |
| Total      earning assets               |   |                                         | (636   | ) |   |   | (325 | ) |   |   | (961 | ) |
|                                    |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing liabilities:      |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Savings      accounts                   |   |                                         | (11    | ) |   |   | 3 |   |   |   | (8 | ) |
| Money      market accounts              |   |                                         | (258   | ) |   |   | (70 | ) |   |   | (328 | ) |
| NOW      accounts                       |   |                                         | (122   | ) |   |   | 14 |   |   |   | (108 | ) |
| Time      & other deposit accounts  |   |                                         | (494   | ) |   |   | 66 |   |   |   | (428 | ) |
| Borrowings                              |   |                                         | 11     |   |   |   | (23 | ) |   |   | (12 | ) |
| Total      interest bearing liabilities |   |                                         | (874   | ) |   |   | (10 | ) |   |   | (884 | ) |
|                                    |   |                                         |   |   |   |   |   |   |   |   |   |   |
| Change      in net interest income      |   | $                                            | 238    |   |   | $ | (315 | ) |   | $ | (77 | ) |

----

----

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----

|                                    |   | For      the Six Months Ended |   |
|-----------------------------------------|--------|-------------------------------|--------|
|                                    |   | June      30,                 |   |
|                                    |   | 2010      vs. 2009            |   |
|                                    |   | Rate                          |   |   | Volume |   |   | Total |   |
|                                    |   | (In      thousands)           |   |
| Earning      assets:                    |   |                          |   |   |   |   |   |   |   |
| Federal      Funds Sold                 |   | $                             | 1      |   |   | $ | - |   |   | $ | 1 |   |
| Interest      Bearing Deposits          |   |                          | 2      |   |   |   | 5 |   |   |   | 7 |   |
| Securities                              |   |                          | (599   | ) |   |   | 98 |   |   |   | (501 | ) |
| Loans                                   |   |                          | (553   | ) |   |   | (691 | ) |   |   | (1,244 | ) |
| Total      earning assets               |   |                          | (1,149 | ) |   |   | (588 | ) |   |   | (1,737 | ) |
|                                    |   |                          |   |   |   |   |   |   |   |   |   |   |
| Interest      bearing liabilities:      |   |                          |   |   |   |   |   |   |   |   |   |   |
| Savings      accounts                   |   |                          | (34    | ) |   |   | 7 |   |   |   | (27 | ) |
| Money      market accounts              |   |                          | (686   | ) |   |   | (93 | ) |   |   | (779 | ) |
| NOW      accounts                       |   |                          | (247   | ) |   |   | 62 |   |   |   | (185 | ) |
| Time      & other deposit accounts  |   |                          | (1,295 | ) |   |   | (156 | ) |   |   | (1,451 | ) |
| Borrowings                              |   |                          | 28     |   |   |   | (74 | ) |   |   | (46 | ) |
| Total      interest bearing liabilities |   |                          | (2,234 | ) |   |   | (254 | ) |   |   | (2,488 | ) |
|                                    |   |                          |   |   |   |   |   |   |   |   |   |   |
| Change      in net interest income      |   | $                             | 1,085  |   |   | $ | (334 | ) |   | $ | 751 |   |

----

----

----

|   | ●      maintaining the appropriate levels of currency throughout our branch      system to meet the daily cash needs of our  customers, |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------|

|   | ●      balancing our mandated deposit or “reserve” requirements at the Federal      Reserve Bank of New York, |
|--------|---------------------------------------------------------------------------------------------------------------------------------|

|   | ●      maintaining adequate cash balances at our correspondent banks,      and |
|--------|--------------------------------------------------------------------------------------|

|   | ●      assuring that adequate levels of overnight funds, liquid assets, and      borrowing resources are available to meet obligations, including      reasonably anticipated dailyfluctuations. |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Sources      of Funding                                           |
|-------------------------------------------------------------------|
| •      Currency*                                            |
| •      Federal Reserve and Correspondent Bank Balances*     |
| •      Federal Funds Sold*                                  |
| •      Loan and Investment Principal and Interest Payments* |
| •      Investment Security Maturities and Calls*            |
| •      Demand Deposits and NOW Accounts*                    |
| •      Savings and Money Market Deposits*                   |
| •      Certificates of Deposit and Other Time Deposits*     |
| •      Repurchase Agreements*                               |
| •      FHLBNY Advances / Lines of Credit*                   |
| •      Sale of Available-for-Sale Investment Securities     |
| •      Brokered Deposits                                    |
| •      Correspondent Lines of Credit                        |
| •      Federal Reserve Discount Window Borrowings           |
| •      Sale of Loans                                        |
| •      Proceeds from Issuance of Equity Securities          |
| •      Branch Acquisition                                   |

| Liquidity      Measure                                                                                                                         |   | June      30,2010   |   |   | December      31,2009 |   |
|------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------|--------|--------|-----------------------|--------|
|                                                                                                                                           |   | (in      thousands) |   |
| Cash      and cash equivalents                                                                                                                 |   | $                   | 63,487 |   |                  | $      | 34,043 |   |
| Available-for-Sale      and Held-to-Maturityinvestment securities less securities pledged      for state and municipal deposits and borrowings |   | $                   | 26,790 |   |                  | $      | 4,890 |   |
| Total      loan to total asset ratio                                                                                                           |   |                | 60.2   | %      |                  |   | 64.8 | % |
| FHLBNY      remaining borrowing capacity                                                                                                       |   | $                   | 14,440 |   |                  | $      | 16,832 |   |
| Available      correspondent bank lines of credit                                                                                              |   | $                   | 12,000 |   |                  | $      | 12,000 |   |
| Brokered      certificate of deposit line of credit                                                                                            |   | $                   | 82,334 |   |                  | $      | 90,332 |   |

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|   | No.       Document |
|--------|-------------------------------------------------------|

|   | 31.2      Certification      of Chief Financial Officer Pursuant to 302 of the Sarbanes-Oxley Act of      2002 (CFO is also performing functions similar to those of CEO, since      August 2, 2010.) |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 32.2      Certification      of Chief Financial Officer Pursuant to 18 U.S.C. 1350 (CFO is also      performing functions similar to those of CEO, since August 2,      2010.) |
|--------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|