| Maryland                        | 74-3242562             |
|---------------------------------|------------------------|
| (State or other jurisdiction of | (I.R.S. Employer       |
| incorporation or organization)  | Identification Number) |

| Large accelerated filer  ̈ | Accelerated filer x | Non-accelerated filer(Do not check if asmaller reportingcompany)  ̈ | Smaller reporting company  ̈ |
|--------------------------------|---------------------|-------------------------------------------------------------------------|----------------------------------|

----

| INDEX                         |
|-------------------------------|
|                          | Page |
|                          |   |
| PART I. FINANCIAL INFORMATION |   |
|                          |   |   |
| Item 1                        | Financial Statements |   |
|                          |   |   |
|                          | Consolidated Statements of Condition June 30, 2009 and December 31, 2008 | 1 |
|                          |   |   |
|                          | Consolidated Statements of Earnings  Three Months and Six Months Ended June 30, 2009 and 2008 | 2 |
|                          |   |   |
|                          | Consolidated Statements of Stockholders’ Equity and Comprehensive Income Six Months Ended June 30, 2009 and 2008 | 3 |
|                          |   |   |
|                          | Consolidated Statements of Cash Flows Six Months Ended June 30, 2009 and 2008 | 4 |
|                          |   |   |
|                          | Notes to Unaudited Consolidated Financial Statements | 6 |
|                          |   |   |
| Item 2                        | Management's Discussion and Analysis of Financial Condition and Results of Operations | 20 |
|                          |   |   |
| Item 3                        | Quantitative and Qualitative Disclosures About Market Risk | 36 |
|                          |   |   |
| Item 4                        | Controls and Procedures | 36 |
|                          |   |   |
| PART II. OTHER INFORMATION    |   |
|                          |   |   |
| Item 1                        | Legal Proceedings | 36 |
|                          |   |   |
| Item 1A                       | Risk Factors | 36 |
|                          |   |   |
| Item 2                        | Unregistered Sales of Equity Securities and Use of Proceeds | 38 |
|                          |   |   |
| Item 3                        | Defaults Upon Senior Securities | 38 |
|                          |   |   |
| Item 4                        | Submission of Matters to a Vote of Security Holders | 39 |
|                          |   |   |
| Item 5                        | Other Information | 39 |
|                          |   |   |
| Item 6                        | Exhibits | 39 |
|                          |   |   |
|                          |   |   |
| SIGNATURES                    | 40 |

----

Index

A

E

N

----

|                                                                                             |   | June 30,    |      |   | December 31, |   |
|--------------------------------------------------------------------------------------------------|--------|-------------|-----------|--------|--------------|--------|
|                                                                                             |   | 2009        |      |   | 2008         |   |
|                                                                                             |   | (unaudited) |      |   |         |   |
| ASSETS                                                                                           |   |        |      |   |         |   |
|                                                                                             |   |        |      |   |         |   |
| Cash and due from banks                                                                          |   | $           | 12,528    |   |         | $      | 10,356 |   |
| Interest-bearing deposits                                                                        |   |        | 10,573    |   |         |   | 3,216 |   |
|         Total cash and cash equivalents                  |   |        | 23,101    |   |         |   | 13,572 |   |
|                                                                                             |   |        |      |   |         |   |   |   |
| Short-term investments                                                                           |   |        | 1,086     |   |         |   | 1,071 |   |
| Securities available for sale, at fair value                                                     |   |        | 255,068   |   |         |   | 313,506 |   |
| Securities held to maturity, at amortized cost  (fair value of $25,827 at              |   |        |      |   |         |   |   |   |
|    June 30, 2009 and $3,238 at December 31, 2008)                                 |   |        | 25,997    |   |         |   | 3,191 |   |
| Loans, net of allowance for loan losses of  $8,962 at June 30, 2009                    |   |        |      |   |         |   |   |   |
|    and $8,250 at December 31, 2008                                                |   |        | 859,618   |   |         |   | 864,421 |   |
| Other real estate owned                                                                          |   |        | 644       |   |         |   | 998 |   |
| Accrued interest receivable                                                                      |   |        | 4,409     |   |         |   | 4,706 |   |
| Deferred tax asset, net                                                                          |   |        | 11,376    |   |         |   | 7,969 |   |
| Stock in the Federal Home Loan Bank of Boston                                                    |   |        | 12,223    |   |         |   | 12,223 |   |
| Banking premises and equipment, net                                                              |   |        | 14,171    |   |         |   | 12,125 |   |
| Bank-owned life insurance                                                                        |   |        | 27,790    |   |         |   | 27,173 |   |
| Other assets                                                                                     |   |        | 3,183     |   |         |   | 2,179 |   |
|         TOTAL ASSETS                                     |   | $           | 1,238,666 |   |         | $      | 1,263,134 |   |
|                                                                                             |   |        |      |   |         |   |   |   |
| LIABILITIES AND STOCKHOLDERS’ EQUITY                                                       |   |        |      |   |         |   |   |   |
|                                                                                             |   |        |      |   |         |   |   |   |
| Liabilities:                                                                                     |   |        |      |   |         |   |   |   |
| Deposits:                                                                                        |   |        |      |   |         |   |   |   |
|     Interest-bearing                                                         |   | $           | 701,850   |   |         | $      | 668,485 |   |
|     Non-interest-bearing                                                     |   |        | 113,699   |   |         |   | 114,178 |   |
|         Total deposits                                   |   |        | 815,549   |   |         |   | 782,663 |   |
| Federal Home Loan Bank of Boston advances                                                        |   |        | 161,105   |   |         |   | 208,564 |   |
| Repurchase agreements                                                                            |   |        | 33,146    |   |         |   | 28,042 |   |
| Escrow funds held for borrowers                                                                  |   |        | 1,826     |   |         |   | 1,667 |   |
| Capitalized lease obligations                                                                    |   |        | 5,204     |   |         |   | 3,129 |   |
| Accrued expenses and other liabilities                                                           |   |        | 8,221     |   |         |   | 11,355 |   |
|         Total liabilities                                |   |        | 1,025,051 |   |         |   | 1,035,420 |   |
|                                                                                             |   |        |      |   |         |   |   |   |
| Stockholders’ equity:                                                                      |   |        |      |   |         |   |   |   |
| Preferred stock, par value $0.01 per share, authorized 50,000,000 shares;                        |   |        |      |   |         |   |   |   |
|     none issued                                                              |   |        | -         |   |         |   | - |   |
| Common stock, par value $0.01 per share, authorized 100,000,000 shares;                          |   |        |      |   |         |   |   |   |
|     17,763,747 shares issued at June 30, 2009 and December 31, 2008          |   |        | 178       |   |         |   | 178 |   |
| Paid-in capital                                                                                  |   |        | 165,759   |   |         |   | 164,358 |   |
| Retained earnings                                                                                |   |        | 76,754    |   |         |   | 75,888 |   |
| Unearned compensation                                                                            |   |        | (11,786   | )      |         |   | (12,144 | ) |
| Treasury stock, at cost (1,523,838 shares at June 30, 2009 and 261,798                           |   |        |      |   |         |   |   |   |
|     shares at December 31, 2008)                                             |   |        | (20,530   | )      |         |   | (3,497 | ) |
| Accumulated other comprehensive income, net of taxes                                             |   |        | 3,240     |   |         |   | 2,931 |   |
|         Total stockholders’ equity                 |   |        | 213,615   |   |         |   | 227,714 |   |
|         TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY |   | $           | 1,238,666 |   |         | $      | 1,263,134 |   |

----

Index

T

----

|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |
|------------------------------------------------------------------------|--------|--------------------|------------|--------|------------------|--------|------------|--------|--------|--------|------------|--------|
|                                                                   |   | Three Months Ended |       |   | Six Months Ended |   |
|                                                                   |   | June 30,           |       |   | June 30,         |   |
|                                                                   |   | 2009               |       |   | 2008             |   |       | 2009   |   |   | 2008       |   |
| Interest and dividend income:                                          |   |               |       |   |             |   |       |   |   |   |       |   |
|    Loans                                                |   | $                  | 11,721     |   |             | $      | 12,295     |   |   | $      | 23,772     |   |   | $ | 24,842 |   |
|    Investments                                          |   |               | 3,390      |   |             |   | 3,560      |   |   |   | 7,261      |   |   |   | 6,178 |   |
|    Other interest-earning assets                        |   |               | 9          |   |             |   | 118        |   |   |   | 17         |   |   |   | 359 |   |
|       Total interest and dividend income |   |               | 15,120     |   |             |   | 15,973     |   |   |   | 31,050     |   |   |   | 31,379 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Interest expense:                                                      |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
|    Deposits                                             |   |               | 3,644      |   |             |   | 4,359      |   |   |   | 7,469      |   |   |   | 9,332 |   |
|    Borrowings                                           |   |               | 1,933      |   |             |   | 1,706      |   |   |   | 3,883      |   |   |   | 3,108 |   |
|       Total interest expense             |   |               | 5,577      |   |             |   | 6,065      |   |   |   | 11,352     |   |   |   | 12,440 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Net interest income before provision for loan losses                   |   |               | 9,543      |   |             |   | 9,908      |   |   |   | 19,698     |   |   |   | 18,939 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Provision for loan losses                                              |   |               | 675        |   |             |   | 651        |   |   |   | 1,215      |   |   |   | 835 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Net interest income after provision for loan losses                    |   |               | 8,868      |   |             |   | 9,257      |   |   |   | 18,483     |   |   |   | 18,104 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Non-interest income:                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
|    Fee income on depositors’ accounts             |   |               | 1,162      |   |             |   | 1,156      |   |   |   | 2,269      |   |   |   | 2,233 |   |
|    Net gain on sale of loans                            |   |               | 238        |   |             |   | -          |   |   |   | 363        |   |   |   | - |   |
|    Net gain on sale of securities                       |   |               | 461        |   |             |   | -          |   |   |   | 461        |   |   |   | 8 |   |
|    Wealth management income                             |   |               | 212        |   |             |   | 136        |   |   |   | 344        |   |   |   | 286 |   |
|    Income from bank-owned life insurance                |   |               | 340        |   |             |   | 95         |   |   |   | 654        |   |   |   | 145 |   |
|    Other income                                         |   |               | 182        |   |             |   | 187        |   |   |   | 355        |   |   |   | 421 |   |
|       Total non-interest income          |   |               | 2,595      |   |             |   | 1,574      |   |   |   | 4,446      |   |   |   | 3,093 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Non-interest expense:                                                  |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
|    Salaries and benefits                                |   |               | 4,615      |   |             |   | 4,199      |   |   |   | 9,279      |   |   |   | 8,240 |   |
|    Occupancy expenses                                   |   |               | 641        |   |             |   | 578        |   |   |   | 1,306      |   |   |   | 1,087 |   |
|    Marketing expenses                                   |   |               | 414        |   |             |   | 441        |   |   |   | 756        |   |   |   | 799 |   |
|    Data processing expenses                             |   |               | 797        |   |             |   | 815        |   |   |   | 1,641      |   |   |   | 1,534 |   |
|    Professional fees                                    |   |               | 295        |   |             |   | 372        |   |   |   | 718        |   |   |   | 815 |   |
|    Merger related expenses                              |   |               | 1,161      |   |             |   | -          |   |   |   | 1,161      |   |   |   | - |   |
|    FDIC insurance assessments                           |   |               | 890        |   |             |   | 164        |   |   |   | 1,230      |   |   |   | 185 |   |
|    Other expenses                                       |   |               | 1,217      |   |             |   | 981        |   |   |   | 2,094      |   |   |   | 2,066 |   |
|       Total non-interest expense         |   |               | 10,030     |   |             |   | 7,550      |   |   |   | 18,185     |   |   |   | 14,726 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Income before income taxes                                             |   |               | 1,433      |   |             |   | 3,281      |   |   |   | 4,744      |   |   |   | 6,471 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Income tax expense                                                     |   |               | 873        |   |             |   | 1,272      |   |   |   | 2,061      |   |   |   | 2,496 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Net income                                                             |   | $                  | 560        |   |             | $      | 2,009      |   |   | $      | 2,683      |   |   | $ | 3,975 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Earnings per share:                                                    |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
|    Basic                                                |   | $                  | 0.04       |   |             | $      | 0.12       |   |   | $      | 0.17       |   |   | $ | 0.24 |   |
|    Diluted                                              |   | $                  | 0.04       |   |             | $      | 0.12       |   |   | $      | 0.17       |   |   | $ | 0.24 |   |
|                                                                   |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
| Weighted average shares outstanding (1):                               |   |               |       |   |             |   |       |   |   |   |       |   |   |   |   |   |
|    Basic                                                |   |               | 15,180,716 |   |             |   | 16,482,394 |   |   |   | 15,443,352 |   |   |   | 16,473,605 |   |
|    Diluted                                              |   |               | 15,194,405 |   |             |   | 16,526,477 |   |   |   | 15,457,191 |   |   |   | 16,515,927 |   |

| (1) |  Prior period basic and diluted share data were revised in accordance with the provisions of FSP EITF 03-6-1 "Determining Whether Instruments Issued in Share-Based Payment Transactions are Participating Securities" which require that share-based compensation awards that qualify as participatingsecurities (entitled to receive non-forfeitable dividends) be included in basic earnings per share using the two-class method. This revision had no impact on earnings per share as previously reported. |
|-----|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

S

----

|                                                    |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    | Accumulated   |   |   |    |   |
|---------------------------------------------------------|--------|-------------|------------|--------|--------|--------|--------|---------|--------|--------|----------|--------|--------|--------------|--------|--------|----------|--------|---------|---------------|--------|--------|---------|--------|
|                                                    |   | Common      |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    | Other         |   |   |    |   |
|                                                    |   | Shares      |       |   | Common |   |   | Paid-In |   |   | Retained |   |   | Unearned     |   |   | Treasury |   |    | Comprehensive |   |   |    |   |
|                                                    |   | Outstanding |       |   | Stock  |   |   | Capital |   |   | Earnings |   |   | Compensation |   |   | Stock    |   |    | Income (Loss) |   |   | Total   |   |
|                                                    |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |
| Balances at December 31, 2007                           |   |        | 17,763,747 |   |   | $      | 178    |    |   | $      | 165,920  |   |   | $            | 73,026 |   |     | $      | (12,835 | )             |   | $      | -       |   |   | $ | (169 | ) |   | $ | 226,120 |   |
| Net income                                              |   |        | -          |   |   |   | -      |    |   |   | -        |   |   |         | 3,975  |   |     |   | -       |          |   |   | -       |   |   |   | - |   |   |   | 3,975 |   |
| Other comprehensive loss                                |   |        | -          |   |   |   | -      |    |   |   | -        |   |   |         | -      |   |     |   | -       |          |   |   | -       |   |   |   | (1,926 | ) |   |   | (1,926 | ) |
|     Total comprehensive income      |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |   | 2,049 |   |
|                                                    |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |   |   |   |
| Net costs from issuance of common stock                 |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |
|    pursuant to second-step conversion    |   |        | -          |   |   |   | -      |    |   |   | (26      | )      |   |         | -      |   |     |   | -       |          |   |   | -       |   |   |   | - |   |   |   | (26 | ) |
| Repurchase of stock to fund the 2008                    |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |   |   |   |
|    Equity Incentive Plan                 |   |        | -          |   |   |   | -      |    |   |   | (537     | )      |   |         | -      |   |     |   | -       |          |   |   | -       |   |   |   | - |   |   |   | (537 | ) |
| Cash dividends paid ($0.13 per share)                   |   |        | -          |   |   |   | -      |    |   |   | -        |   |   |         | (2,143 | )      |     |   | -       |          |   |   | -       |   |   |   | - |   |   |   | (2,143 | ) |
| Stock-based compensation                                |   |        | -          |   |   |   | -      |    |   |   | 761      |   |   |         | -      |   |     |   | -       |          |   |   | -       |   |   |   | - |   |   |   | 761 |   |
| ESOP shares committed to be released                    |   |        | -          |   |   |   | -      |    |   |   | 53       |   |   |         | -      |   |     |   | 349     |          |   |   | -       |   |   |   | - |   |   |   | 402 |   |
| Balances at June 30, 2008                               |   |        | 17,763,747 |   |   | $      | 178    |    |   | $      | 166,171  |   |   | $            | 74,858 |   |     | $      | (12,486 | )             |   | $      | -       |   |   | $ | (2,095 | ) |   | $ | 226,626 |   |
|                                                    |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |   |   |   |
|                                                    |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |   |   |   |
| Balances at December 31, 2008                           |   |        | 17,501,949 |   |   | $      | 178    |    |   | $      | 164,358  |   |   | $            | 75,888 |   |     | $      | (12,144 | )             |   | $      | (3,497  | )      |   | $ | 2,931 |   |   | $ | 227,714 |   |
|                                                    |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |   |   |   |
| FAS 115-2 OTTI effect of adoption                       |   |        | -          |   |   |   | -      |    |   |   | -        |   |   |         | 337    |   |     |   | -       |          |   |   | -       |   |   |   | (337 | ) |   |   | - |   |
| Net income                                              |   |        | -          |   |   |   | -      |    |   |   | -        |   |   |         | 2,683  |   |     |   | -       |          |   |   | -       |   |   |   | - |   |   |   | 2,683 |   |
| Other comprehensive income                              |   |        | -          |   |   |   | -      |    |   |   | -        |   |   |         | -      |   |     |   | -       |          |   |   | -       |   |   |   | 646 |   |   |   | 646 |   |
|     Total comprehensive income      |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |   | 3,329 |   |
|                                                    |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |   |   |   |
| Cash dividends paid ($0.14 per share)                   |   |        | -          |   |   |   | -      |    |   |   | -        |   |   |         | (2,154 | )      |     |   | -       |          |   |   | -       |   |   |   | - |   |   |   | (2,154 | ) |
| Treasury stock purchases                                |   |        | (1,251,979 | )      |   |   | -      |    |   |   | -        |   |   |         | -      |   |     |   | -       |          |   |   | (16,901 | )      |   |   | - |   |   |   | (16,901 | ) |
| Shares repurchased in connection with                   |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |   |   |   |
|   restricted stock forfeited for tax purposes |   |        | (10,459    | )      |   |   | -      |    |   |   | -        |   |   |         | -      |   |     |   | -       |          |   |   | (137    | )      |   |   | - |   |   |   | (137 | ) |
| Tax benefit from MRP vesting                            |   |        | -          |   |   |   | -      |    |   |   | 33       |   |   |         | -      |   |     |   | -       |          |   |   | -       |   |   |   | - |   |   |   | 33 |   |
| Reissuance of treasury shares in connection             |   |        |       |   |   |   |   |    |   |   |     |   |   |         |   |   |     |   |    |          |   |   |    |   |   |   |   |   |   |
|   with restricted stock grants                |   |        | 398        |   |   |   | -      |    |   |   | (5       | )      |   |         | -      |   |     |   | -       |          |   |   | 5       |   |   |   | - |   |   |   | - |   |
| Stock-based compensation                                |   |        | -          |   |   |   | -      |    |   |   | 1,238    |   |   |         | -      |   |     |   | -       |          |   |   | -       |   |   |   | - |   |   |   | 1,238 |   |
| ESOP shares committed to be released                    |   |        | -          |   |   |   | -      |    |   |   | 135      |   |   |         | -      |   |     |   | 358     |          |   |   | -       |   |   |   | - |   |   |   | 493 |   |
| Balances at June 30, 2009                               |   |        | 16,239,909 |   |   | $      | 178    |    |   | $      | 165,759  |   |   | $            | 76,754 |   |     | $      | (11,786 | )             |   | $      | (20,530 | )      |   | $ | 3,240 |   |   | $ | 213,615 |   |

|                                                                         |   | Six Months Ended June 30, |   |
|------------------------------------------------------------------------------|--------|---------------------------|--------|
|                                                                         |   | 2009                      |   |   | 2008 |   |
|                                                                         |   |                      |   |   |   |   |
| Change in unrealized holding gains (losses) on available-for-sale securities |   | $                         | 1,491  |   |   | $ | (3,194 | ) |
| Reclassification adjustment for gains realized in income                     |   |                      | (461   | ) |   |   | (8 | ) |
|    Net change in unrealized gains (losses)                    |   |                      | 1,030  |   |   |   | (3,202 | ) |
|                                                                         |   |                      |   |   |   |   |   |   |
| Tax effect                                                                   |   |                      | 384    |   |   |   | (1,276 | ) |
|                                                                         |   |                      |   |   |   |   |   |   |
|    Other comprehensive income (loss)                          |   | $                         | 646    |   |   | $ | (1,926 | ) |
|                                                                         |   |                      |   |   |   |   |   |   |

----

Index

----

|                                                                                                |   | 2009   |         |    | 2008   |   |
|-----------------------------------------------------------------------------------------------------|--------|--------|--------------|---------|--------|--------|
| Cash flows from operating activities:                                                               |   |   |         |    |   |   |
| Net income                                                                                          |   | $      | 2,683        |    |   | $      | 3,975 |   |
| Adjustments to reconcile net income to net cash used in                                             |   |   |         |    |   |   |   |   |
|  operating activities:                                                                         |   |   |         |    |   |   |   |   |
|    Provision for loan losses                                                         |   |   | 1,215        |    |   |   | 835 |   |
|    ESOP expense                                                                      |   |   | 493          |    |   |   | 402 |   |
|    Stock-based compensation                                                          |   |   | 1,238        |    |   |   | 761 |   |
|    Amortization of premiums and discounts                                            |   |   | 169          |    |   |   | 73 |   |
|    Depreciation and amortization                                                     |   |   | 508          |    |   |   | 406 |   |
|    Amortization of intangible assets                                                 |   |   | 11           |    |   |   | 15 |   |
|    Net loss on sale of other real estate owned                                       |   |   | 15           |    |   |   | 9 |   |
|    Net gain on sale of securities                                                    |   |   | (461         | )       |   |   | (8 | ) |
|    Loans originated for sale                                                         |   |   | (16,018      | )       |   |   | - |   |
|    Proceeds from sales of loans held for sale                                        |   |   | 16,381       |    |   |   |   |   |
|    Net gain on sale of loans                                                         |   |   | (363         | )       |   |   | - |   |
|    Increase in cash surrender value of bank-owned life insurance                     |   |   | (617         | )       |   |   | (293 | ) |
|    Decrease (increase) in accrued interest receivable                                |   |   | 297          |    |   |   | (147 | ) |
|    Increase in other assets                                                          |   |   | (4,805       | )       |   |   | (4,660 | ) |
|    Decrease in accrued expenses and other liabilities                                |   |   | (1,792       | )       |   |   | (2,670 | ) |
| Net cash used in operating activities                                                               |   |   | (1,046       | )       |   |   | (1,302 | ) |
| Cash flows from investing activities:                                                               |   |   |         |    |   |   |   |   |
|    Purchases of securities available for sale                                        |   |   | (4,599       | )       |   |   | (167,496 | ) |
|    Proceeds from sales of securities available for sale                              |   |   | 24,386       |    |   |   | 28,407 |   |
|    Proceeds from maturities, calls and principal repayments of securities            |   |   |         |    |   |   |   |   |
|      available for sale                                                    |   |   | 39,987       |    |   |   | 46,871 |   |
|    Purchases of securities held to maturity                                          |   |   | (23,129      | )       |   |   | - |   |
|    Proceeds from  maturities, calls and principal repayments of securities |   |   |         |    |   |   |   |   |
|      held to maturity                                                      |   |   | 308          |    |   |   | 25 |   |
|    Investment in short term time deposits                                            |   |   | (15          | )       |   |   | (25 | ) |
|    Proceeds from sales of other real estate owned                                    |   |   | 370          |    |   |   | 391 |   |
|    Net loan originations, purchases and principal repayments                         |   |   | (10,080      | )       |   |   | (34,025 | ) |
|    Proceeds from sales of loans                                                      |   |   | 13,637       |    |   |   | - |   |
|    Purchases of property and equipment                                               |   |   | (429         | )       |   |   | (579 | ) |
|    Cash paid on merger related expenses                                              |   |   |  (1,161 | )  |   |   |  - |   |
|    Cash paid to acquire Levine Financial Group                                       |   |   | (92          | )       |   |   | (82 | ) |
| Net cash provided by (used in) investing activities                                                 |   |   | 39,183       |    |   |   | (126,513 | ) |
|                                                                                                |   |   |         |    |   |   |   |   |

----

Index

----

|                                                                                      |   |   |    |   |   |   |
|-------------------------------------------------------------------------------------------|--------|--------|---------|--------|--------|--------|
|                                                                                      |   | 2009   |    |   | 2008   |   |
| Cash flows from financing activities:                                                     |   |   |    |   |   |   |
|    Net increase in deposits                                                |   |   | 32,886  |   |   |   | 56,025 |   |
|    Net (decrease) increase in short-term borrowings from Federal           |   |   |    |   |   |   |   |   |
|      Home Loan Bank of Boston                                    |   |   | (42,000 | )      |   |   | 53,145 |   |
|    Proceeds of Federal Home Loan Bank of Boston long-term advances         |   |   | 1,043   |   |   |   | 45,000 |   |
|    Repayments of Federal Home Loan Bank of Boston long-term advances       |   |   | (6,502  | )      |   |   | (15,753 | ) |
|    Net increase (decrease) in repurchase agreements                        |   |   | 5,104   |   |   |   | (4,901 | ) |
|    Net increase (decrease) in escrow funds held for borrowers              |   |   | 159     |   |   |   | (32 | ) |
|    Payments on capitalized lease obligations                               |   |   | (139    | )      |   |   | (99 | ) |
|    Repurchases of common stock to fund the 2008 Equity Incentive Plan      |   |   | -       |   |   |   | (537 | ) |
|    Tax benefit from MRP vesting                                            |   |   | 33      |   |   |   | - |   |
|    Treasury stock purchases                                                |   |   | (17,038 | )      |   |   | - |   |
|    Cash dividends paid                                                     |   |   | (2,154  | )      |   |   | (2,143 | ) |
|    Costs from issuance of common stock pursuant to second-step conversion  |   |   | -       |   |   |   | (26 | ) |
| Net cash (used in) provided by financing activities                                       |   |   | (28,608 | )      |   |   | 130,679 |   |
| Increase in cash and cash equivalents                                                     |   |   | 9,529   |   |   |   | 2,864 |   |
| Cash and cash equivalents at beginning of period                                          |   |   | 13,572  |   |   |   | 14,254 |   |
| Cash and cash equivalents at end of period                                                |   | $      | 23,101  |   |   | $      | 17,118 |   |
|                                                                                      |   |   |    |   |   |   |   |   |
|                                                                                      |   |   |    |   |   |   |   |   |
|                                                                                      |   |   |    |   |   |   |   |   |
| Supplemental Disclosure of Cash Flow Information:                                         |   |   |    |   |   |   |   |   |
| Cash paid during the period:                                                              |   |   |    |   |   |   |   |   |
|    Interest on deposits, borrowings and other interest bearing liabilities |   | $      | 11,341  |   |   | $      | 12,400 |   |
|    Income taxes – net                                                |   |   | 9,625   |   |   |   | 8,330 |   |
| Non-cash items:                                                                           |   |   |    |   |   |   |   |   |
|    Capitalized lease asset and obligations                                 |   |   | 2,119   |   |   |   | 1,308 |   |
|    Transfer of loans to other real estate owned                            |   |   | -       |   |   |   | 150 |   |
|    Trade date accounting for securities purchased                          |   |   | -       |   |   |   | 2,471 |   |
|                                                                                      |   |   |    |   |   |   |   |   |
|                                                                                      |   |   |    |   |   |   |   |   |

----

Index

----

----

Index

----

Index

----

Index

----

Index

|                                              |   | Three Months Ended |       |   | Six Months Ended |   |
|---------------------------------------------------|--------|--------------------|------------|--------|------------------|--------|
|                                              |   | June 30,           |       |   | June 30,         |   |
|                                              |   | 2009               |       |   | 2008             |   |   | 2009 |   |   | 2008 |   |
| Net income                                        |   | $                  | 560        |   |             | $      | 2,009 |   |   | $ | 2,683 |   |   | $ | 3,975 |   |
| Weighted average common shares applicable to      |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   basic EPS (1, 4)                      |   |               | 15,180,716 |   |             |   | 16,482,394 |   |   |   | 15,443,352 |   |   |   | 16,473,605 |   |
| Effect of dilutive potential common shares (2, 3) |   |               | 13,689     |   |             |   | 44,083 |   |   |   | 13,839 |   |   |   | 42,322 |   |
| Weighted average common shares applicable to      |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|   diluted EPS (4)                       |   |               | 15,194,405 |   |             |   | 16,526,477 |   |   |   | 15,457,191 |   |   |   | 16,515,927 |   |
|                                              |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
| Earnings per share:                               |   |               |       |   |             |   |   |   |   |   |   |   |   |   |   |   |
|    Basic                           |   | $                  | 0.04       |   |             | $      | 0.12 |   |   | $ | 0.17 |   |   | $ | 0.24 |   |
|    Diluted                         |   | $                  | 0.04       |   |             | $      | 0.12 |   |   | $ | 0.17 |   |   | $ | 0.24 |   |

| (1)  | Data for the three and six months ended June 30, 2008 includes shares repurchased to fund the United Financial Bancorp, Inc. 2008 Equity Incentive Plan. |
|-----------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

| (2)  | For the six months ended June 30, 2009 and 2008, options to purchase 1,295,863 and 1,557,698 shares, respectively, were outstanding but not included in the computation of earnings per share because they were antidilutive. |
|-----------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| (3)  | Includes incremental shares related to stock options. |
|-----------|-------------------------------------------------------|

| (4)  | Prior period basic and diluted share data were revised in accordance with the provisions of FSP EITF 03-6-1 "Determining Whether Instruments Issued in Share-Based Payment Transactions are Participating Securities" which require that share- based compensation awards that qualify as participating securities (entitled to receive non-forfeitabledividends) be included in basic EPS using the two-class method. This revision had no impact on earnings per share as previously reported. |
|-----------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

Index

|                                |   | Amortized |    |   | Unrealized |   |   |   |   |
|-------------------------------------|--------|-----------|---------|--------|------------|--------|--------|--------|--------|
|                                |   | Cost      |    |   | Gains      |   |   | Losses |   |   | Fair Value |   |
| Securities Available for Sale       |   |      |    |   |       |   |   |   |   |   |   |   |
| June 30, 2009:                      |   |      |    |   |       |   |   |   |   |   |   |   |
| Debt Securities:                    |   |      |    |   |       |   |   |   |   |   |   |   |
| Government-sponsored enterprises    |   | $         | 400     |   |       | $      | -      |   |   | $ | (2 | ) |   | $ | 398 |   |
| Mortgage-backed securities          |   |      | 235,428 |   |       |   | 7,632  |   |   |   | (49 | ) |   |   | 243,011 |   |
| Municipal bonds                     |   |      | 10,504  |   |       |   | 51     |   |   |   | (231 | ) |   |   | 10,324 |   |
| Corporate bonds                     |   |      | 1,534   |   |       |   | 42     |   |   |   | (241 | ) |   |   | 1,335 |   |
| Total securities available for sale |   | $         | 247,866 |   |       | $      | 7,725  |   |   | $ | (523 | ) |   | $ | 255,068 |   |
|                                |   |      |    |   |       |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008:                  |   |      |    |   |       |   |   |   |   |   |   |   |   |   |   |   |
|  Debt Securities:              |   |      |    |   |       |   |   |   |   |   |   |   |   |   |   |   |
| Government-sponsored enterprises    |   | $         | 467     |   |       | $      | -      |   |   | $ | (2 | ) |   | $ | 465 |   |
| Mortgage-backed securities          |   |      | 294,824 |   |       |   | 6,601  |   |   |   | (314 | ) |   |   | 301,111 |   |
| Municipal bonds                     |   |      | 10,504  |   |       |   | 83     |   |   |   | (195 | ) |   |   | 10,392 |   |
| Corporate bonds                     |   |      | 1,538   |   |       |   | -      |   |   |   | - |   |   |   | 1,538 |   |
| Total securities available for sale |   | $         | 307,333 |   |       | $      | 6,684  |   |   | $ | (511 | ) |   | $ | 313,506 |   |
|                                |   |      |    |   |       |   |   |   |   |   |   |   |   |   |   |   |

|                        |   | Amortized |   |   | Unrealized |   |   |   |   |
|-----------------------------|--------|-----------|--------|--------|------------|--------|--------|--------|--------|
|                        |   | Cost      |   |   | Gains      |   |   | Losses |   |   | Fair Value |   |
| Securities Held to Maturity |   |      |   |   |       |   |   |   |   |   |   |   |
| June 30, 2009:              |   |      |   |   |       |   |   |   |   |   |   |   |
| Mortgage-backed securities  |   | $         | 22,833 |   |       | $      | -      |   |   | $ | (230 | ) |   | $ | 22,603 |   |
| IRB                         |   |      | 1,097  |   |       |   | -      |   |   |   | - |   |   |   | 1,097 |   |
| Municipal bonds             |   |      | 2,067  |   |       |   | 60     |   |   |   | - |   |   |   | 2,127 |   |
| Total                       |   | $         | 25,997 |   |       | $      | 60     |   |   | $ | (230 | ) |   | $ | 25,827 |   |
|                        |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2008:          |   |      |   |   |       |   |   |   |   |   |   |   |   |   |   |   |
| IRB                         |   | $         | 1,122  |   |       | $      | -      |   |   | $ | - |   |   | $ | 1,122 |   |
| Municipal bonds             |   |      | 2,069  |   |       |   | 49     |   |   |   | (2 | ) |   |   | 2,116 |   |
| Total                       |   | $         | 3,191  |   |       | $      | 49     |   |   | $ | (2 | ) |   | $ | 3,238 |   |

----

Index

----

Index

|                         |   | Non            |   |
|------------------------------|--------|----------------|--------|
|                         |   | Credit-related |   |
|                         |   | OTTI           |   |
|                         |   |           |   |
|                         |   |           |   |
| Beginning balance            |   | $              | -      |   |
|    Additions  |   |           | 337    |   |
|    Reductions |   |           | -      |   |
| Ending balance               |   | $              | 337    |   |

|                             |   | June 30, |    |   | December 31, |   |
|----------------------------------|--------|----------|---------|--------|--------------|--------|
|                             |   | 2009     |    |   | 2008         |   |
|                             |   |     |    |   |         |   |
| Residential mortgages            |   | $        | 331,855 |   |         | $      | 356,428 |   |
| Commercial real estate           |   |     | 271,186 |   |         |   | 248,457 |   |
| Construction                     |   |     | 36,260  |   |         |   | 32,082 |   |
| Home equity                      |   |     | 120,009 |   |         |   | 120,724 |   |
| Commercial and industrial        |   |     | 81,731  |   |         |   | 84,919 |   |
| Automobile                       |   |     | 15,830  |   |         |   | 17,332 |   |
| Consumer                         |   |     | 9,551   |   |         |   | 10,334 |   |
|    Total loans    |   |     | 866,422 |   |         |   | 870,276 |   |
|                             |   |     |    |   |         |   |   |   |
| Net deferred loan costs and fees |   |     | 2,158   |   |         |   | 2,395 |   |
| Allowance for loan losses        |   |     | (8,962  | )      |         |   | (8,250 | ) |
|    Loans, net     |   | $        | 859,618 |   |         | $      | 864,421 |   |

----

Index

|                                                              |   | June 30, |   |   | December 31, |   |
|-------------------------------------------------------------------|--------|----------|--------|--------|--------------|--------|
|                                                              |   | 2009     |   |   | 2008         |   |
|                                                              |   |     |   |   |         |   |
| Non-accrual loans:                                                |   |     |   |   |         |   |
|    Residential mortgages                           |   | $        | 2,030  |   |         | $      | 1,244 |   |
|    Commercial mortgages                            |   |     | 2,060  |   |         |   | 2,544 |   |
|    Construction                                    |   |     | 761    |   |         |   | 444 |   |
|    Home equity                                     |   |     | -      |   |         |   | - |   |
|    Commercial and industrial                       |   |     | 304    |   |         |   | 425 |   |
|    Other consumer                                  |   |     | 180    |   |         |   | 140 |   |
|        Total non-accrual loans |   |     | 5,335  |   |         |   | 4,797 |   |
|                                                              |   |     |   |   |         |   |   |   |
| Other real estate owned                                           |   |     | 644    |   |         |   | 998 |   |
|       Total non-performing assets   |   | $        | 5,979  |   |         | $      | 5,795 |   |
|                                                              |   |     |   |   |         |   |   |   |
| Ratios:                                                           |   |     |   |   |         |   |   |   |
|    Total non-performing loans to total loans       |   |     | 0.62   | %      |         |   | 0.55 | % |
|    Total non-performing assets to total assets     |   |     | 0.48   | %      |         |   | 0.46 | % |

|                                        |   | For the Six Months Ended June 30, |   |
|---------------------------------------------|--------|-----------------------------------|--------|
|                                        |   | 2009                              |   |   | 2008 |   |
|                                        |   |                              |   |   |   |   |
| Balance at beginning of period              |   | $                                 | 8,250  |   |   | $ | 7,714 |   |
| Provision for loan losses                   |   |                              | 1,215  |   |   |   | 835 |   |
| Charge-offs:                                |   |                              |   |   |   |   |   |   |
| Commercial mortgages                        |   |                              | (282   | ) |   |   | (6 | ) |
| Construction                                |   |                              | (130   | ) |   |   | (90 | ) |
| Home equity                                 |   |                              | -      |   |   |   | (42 | ) |
| Commercial and industrial                   |   |                              | (135   | ) |   |   | (249 | ) |
| Automobile                                  |   |                              | (5     | ) |   |   | - |   |
| Other consumer                              |   |                              | (1     | ) |   |   | (10 | ) |
| Total charge-offs                           |   |                              | (553   | ) |   |   | (397 | ) |
| Recoveries:                                 |   |                              |   |   |   |   |   |   |
| Commercial and industrial                   |   |                              | 48     |   |   |   | 8 |   |
| Automobile                                  |   |                              | 2      |   |   |   | 1 |   |
| Other consumer                              |   |                              | -      |   |   |   | 1 |   |
| Total recoveries                            |   |                              | 50     |   |   |   | 10 |   |
| Net charge-offs                             |   |                              | (503   | ) |   |   | (387 | ) |
| Balance at end of period                    |   | $                                 | 8,962  |   |   | $ | 8,162 |   |
| Ratios:                                     |   |                              |   |   |   |   |   |   |
| Net charge-offs to average loans            |   |                              |   |   |   |   |   |   |
|    outstanding (annualized)  |   |                              | 0.12   | % |   |   | 0.09 | % |
| Allowance for loan losses to non-performing |   |                              |   |   |   |   |   |   |
|    loans at end of period    |   |                              | 167.99 | % |   |   | 197.39 | % |
| Allowance for loan losses to total          |   |                              |   |   |   |   |   |   |
|    loans at end of period    |   |                              | 1.03   | % |   |   | 0.95 | % |

----

Index

|                           |   | June 30, |    |   | December 31, |   |
|--------------------------------|--------|----------|---------|--------|--------------|--------|
|                           |   | 2009     |    |   | 2008         |   |
|                           |   |     |    |   |         |   |
| Unused lines of credit         |   | $        | 168,404 |   |         | $      | 155,448 |   |
| Amounts due mortgagors         |   |     | 20,436  |   |         |   | 14,479 |   |
| Standby letters of credit      |   |     | 1,404   |   |         |   | 1,156 |   |
| Commitments to originate loans |   |     | 21,714  |   |         |   | 10,458 |   |

|                    |   | June 30, |    |   | December 31, |   |
|-------------------------|--------|----------|---------|--------|--------------|--------|
|                    |   | 2009     |    |   | 2008         |   |
|                    |   |     |    |   |         |   |
| Demand                  |   | $        | 113,699 |   |         | $      | 114,178 |   |
| NOW                     |   |     | 35,082  |   |         |   | 32,390 |   |
| Savings                 |   |     | 122,182 |   |         |   | 99,492 |   |
| Money market            |   |     | 185,998 |   |         |   | 160,736 |   |
| Certificates of deposit |   |     | 358,588 |   |         |   | 375,867 |   |
|                    |   | $        | 815,549 |   |         | $      | 782,663 |   |

----

Index

|                                      |   |    |   |   |    |   |    |    |   |   | Total      |   |
|-------------------------------------------|--------|---------|--------|--------|---------|--------|---------|---------|--------|--------|------------|--------|
|                                      |   | Level 1 |   |   | Level 2 |   |    | Level 3 |   |   | Fair Value |   |
| At June 30, 2009                          |   |    |   |   |    |   |    |    |   |   |       |   |
|   Securities available for sale |   | $       | 398    |   |    | $      | 253,036 |    |   | $      | 1,634      |   |   | $ | 255,068 |   |
|   Mortgage servicing rights     |   |    | -      |   |    |   | -       |    |   |   | 375        |   |   |   | 375 |   |
|                                      |   |    |   |   |    |   |    |    |   |   |       |   |   |   |   |   |
|   Total                         |   | $       | 398    |   |    | $      | 253,036 |    |   | $      | 2,009      |   |   | $ | 255,443 |   |
|                                      |   |    |   |   |    |   |    |    |   |   |       |   |   |   |   |   |
| At December 31, 2008                      |   |    |   |   |    |   |    |    |   |   |       |   |   |   |   |   |
|   Securities available for sale |   | $       | 465    |   |    | $      | 311,209 |    |   | $      | 1,832      |   |   | $ | 313,506 |   |
|   Mortgage servicing rights     |   |    | -      |   |    |   | -       |    |   |   | 124        |   |   |   | 124 |   |
|                                      |   |    |   |   |    |   |    |    |   |   |       |   |   |   |   |   |
|   Total                         |   | $       | 465    |   |    | $      | 311,209 |    |   | $      | 1,956      |   |   | $ | 313,630 |   |

| Balance at December 31, 2008                            |   | $      | 1,956 |   |
|---------------------------------------------------------|--------|--------|-------|--------|
| Total realized/unrealized losses included in net income |   |   | (23   | )      |
| Change in unrealized loss                               |   |   | (198  | )      |
| Purchases, sales, issuances and settlements             |   |   | 224   |   |
| MSR amortization                                        |   |   | 50    |   |
| Transfers in and out of Level 3                         |   |   | -     |   |
| Balance at June 30, 2009                                |   | $      | 2,009 |   |

----

Index

|                    |   |             |   |   |    |   |   |    |   |   | Three Months   |   |   | Six Months     |   |
|-------------------------|--------|------------------|--------|--------|---------|--------|--------|---------|--------|--------|----------------|--------|--------|----------------|--------|
|                    |   |             |   |   |    |   |   |    |   |   | Ended          |   |   | Ended          |   |
|                    |   |             |   |   |    |   |   |    |   |   | June 30, 2009  |   |   | June 30, 2009  |   |
|                    |   | At June 30, 2009 |   |   | Total   |   |   | Total   |   |
|                    |   | Level 1          |   |   | Level 2 |   |   | Level 3 |   |   | Gains/(Losses) |   |   | Gains/(Losses) |   |
| Assets:                 |   |             |   |   |    |   |   |    |   |   |           |   |   |           |   |
| Loans                   |   | $                | -      |   |    | $      | 5,335  |    |   | $      | -              |   |   | $              | (141   | )  |   | $ | (458 | )  |
| Other real estate owned |   |             | -      |   |    |   | 644    |    |   |   | -              |   |   |           | (7     | ) |   |   | (15 | ) |
| Other assets            |   |             | -      |   |    |   | -      |    |   |   | 1,420          |   |   |           | -      |   |   |   | - |   |
|                    |   |             |   |   |    |   |   |    |   |   |           |   |   |           |   |   |   |   |   |   |
| Total assets            |   | $                | -      |   |    | $      | 5,979  |    |   | $      | 1,420          |   |   | $              | (148   | )  |   | $ | (473 | )  |

----

Index

----

Index

|                                      |   | At June 30, 2009 |    |   | At December 31, 2008 |   |
|-------------------------------------------|--------|------------------|---------|--------|----------------------|--------|
|                                      |   | Carrying         |    |   | Estimated            |   |   | Carrying |   |   | Estimated |   |
|                                      |   | Value            |    |   | Fair Value           |   |   | Value |   |   | Fair Value |   |
| Financial Assets:                         |   |             |    |   |                 |   |   |   |   |   |   |   |
| Cash and cash equivalents                 |   | $                | 23,101  |   |                 | $      | 23,101 |   |   | $ | 13,572 |   |   | $ | 13,572 |   |
| Short-term investments                    |   |             | 1,086   |   |                 |   | 1,086 |   |   |   | 1,071 |   |   |   | 1,071 |   |
| Securities available for sale             |   |             | 255,068 |   |                 |   | 255,068 |   |   |   | 313,506 |   |   |   | 313,506 |   |
| Securities held to maturity               |   |             | 25,997  |   |                 |   | 25,827 |   |   |   | 3,191 |   |   |   | 3,238 |   |
| Stock in Federal Home Loan Bank of Boston |   |             | 12,223  |   |                 |   | 12,223 |   |   |   | 12,223 |   |   |   | 12,223 |   |
| Net loans                                 |   |             | 859,618 |   |                 |   | 846,089 |   |   |   | 864,421 |   |   |   | 870,731 |   |
| Accrued interest receivable               |   |             | 4,409   |   |                 |   | 4,409 |   |   |   | 4,706 |   |   |   | 4,706 |   |
|                                      |   |             |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities:                    |   |             |    |   |                 |   |   |   |   |   |   |   |   |   |   |   |
| Deposits (with no stated maturity)        |   |             | 456,961 |   |                 |   | 456,961 |   |   |   | 406,796 |   |   |   | 406,796 |   |
| Time deposits                             |   |             | 358,588 |   |                 |   | 363,812 |   |   |   | 375,867 |   |   |   | 378,424 |   |
| Federal Home Loan Bank of Boston advances |   |             | 161,105 |   |                 |   | 161,551 |   |   |   | 208,564 |   |   |   | 217,236 |   |
| Repurchase agreements                     |   |             | 33,146  |   |                 |   | 32,460 |   |   |   | 28,042 |   |   |   | 28,021 |   |
| Accrued interest payable                  |   |             | 638     |   |                 |   | 638 |   |   |   | 627 |   |   |   | 627 |   |

|                            |   | For the Three Months Ended June 30, |   |   | For the Six Months Ended June 30, |   |
|---------------------------------|--------|-------------------------------------|--------|--------|-----------------------------------|--------|
|                            |   | 2009                                |   |   | 2008                              |   |   | 2009 |   |   | 2008 |   |
|                            |   |                                |   |   | Director                          |   |   |   |   |   | Director |   |   |   |   |   | Director |   |   |   |   |   | Director |   |
|                            |   |                                |   |   | Retirement                        |   |   |   |   |   | Retirement |   |   |   |   |   | Retirement |   |   |   |   |   | Retirement |   |
|                            |   | SERP                                |   |   | Plan                              |   |   | SERP |   |   | Plan |   |   | SERP |   |   | Plan |   |   | SERP |   |   | Plan |   |
| Periodic benefit cost:          |   |                                |   |   |                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Service cost                    |   | $                                   | 69     |   |                              | $      | 15 |   |   | $ | 77 |   |   | $ | 14 |   |   | $ | 138 |   |   | $ | 30 |   |   | $ | 153 |   |   | $ | 28 |   |
| Interest cost                   |   |                                | 35     |   |                              |   | 9 |   |   |   | 34 |   |   |   | 8 |   |   |   | 70 |   |   |   | 18 |   |   |   | 69 |   |   |   | 16 |   |
| Total pension cost              |   |                                | 104    |   |                              |   | 24 |   |   |   | 111 |   |   |   | 22 |   |   |   | 208 |   |   |   | 48 |   |   |   | 222 |   |   |   | 44 |   |
| Prior service cost amortization |   |                                | 19     |   |                              |   | 9 |   |   |   | 19 |   |   |   | 9 |   |   |   | 38 |   |   |   | 18 |   |   |   | 38 |   |   |   | 18 |   |
| Net loss amortization           |   |                                | -      |   |                              |   | - |   |   |   | 6 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 12 |   |   |   | - |   |
| Net periodic benefit cost       |   | $                                   | 123    |   |                              | $      | 33 |   |   | $ | 136 |   |   | $ | 31 |   |   | $ | 246 |   |   | $ | 66 |   |   | $ | 272 |   |   | $ | 62 |   |

----

Index

----

Index

|                      |   | Loans Delinquent For   |   |
|---------------------------|--------|------------------------|--------|
|                      |   | 60 - 89 Days           |   |   | 90 Days and Over |   |   | Total |   |
|                      |   | Number                 |   |   | Amount |   |   | Number |   |   | Amount |   |   | Number |   |   | Amount |   |
|                      |   | (Dollars in thousands) |   |
| At June 30, 2009          |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgages     |   |                   | 12     |   |   | $ | 1,243 |   |   |   | 9 |   |   | $ | 2,030 |   |   |   | 21 |   |   | $ | 3,273 |   |
| Commercial mortgages      |   |                   | 9      |   |   |   | 1,828 |   |   |   | 7 |   |   |   | 2,060 |   |   |   | 16 |   |   |   | 3,888 |   |
| Construction              |   |                   | 2      |   |   |   | 168 |   |   |   | 4 |   |   |   | 761 |   |   |   | 6 |   |   |   | 929 |   |
| Home equity               |   |                   | 3      |   |   |   | 208 |   |   |   | - |   |   |   | - |   |   |   | 3 |   |   |   | 208 |   |
| Commercial and industrial |   |                   | 6      |   |   |   | 276 |   |   |   | 13 |   |   |   | 304 |   |   |   | 19 |   |   |   | 580 |   |
| Automobile                |   |                   | 1      |   |   |   | 3 |   |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | 3 |   |
| Other consumer            |   |                   | -      |   |   |   | - |   |   |   | 3 |   |   |   | 180 |   |   |   | 3 |   |   |   | 180 |   |
| Total                     |   |                   | 33     |   |   | $ | 3,726 |   |   |   | 36 |   |   | $ | 5,335 |   |   |   | 69 |   |   | $ | 9,061 |   |
|                      |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| At December 31, 2008      |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential mortgages     |   |                   | 7      |   |   | $ | 939 |   |   |   | 7 |   |   | $ | 1,244 |   |   |   | 14 |   |   | $ | 2,183 |   |
| Commercial mortgages      |   |                   | 3      |   |   |   | 772 |   |   |   | 8 |   |   |   | 2,544 |   |   |   | 11 |   |   |   | 3,316 |   |
| Construction              |   |                   | 1      |   |   |   | 140 |   |   |   | 3 |   |   |   | 444 |   |   |   | 4 |   |   |   | 584 |   |
| Home equity               |   |                   | 2      |   |   |   | 126 |   |   |   | - |   |   |   | - |   |   |   | 2 |   |   |   | 126 |   |
| Commercial and industrial |   |                   | 5      |   |   |   | 242 |   |   |   | 15 |   |   |   | 425 |   |   |   | 20 |   |   |   | 667 |   |
| Automobile                |   |                   | 1      |   |   |   | 8 |   |   |   | - |   |   |   | - |   |   |   | 1 |   |   |   | 8 |   |
| Other consumer            |   |                   | 1      |   |   |   | 2 |   |   |   | 2 |   |   |   | 140 |   |   |   | 3 |   |   |   | 142 |   |
| Total                     |   |                   | 20     |   |   | $ | 2,229 |   |   |   | 35 |   |   | $ | 4,797 |   |   |   | 55 |   |   | $ | 7,026 |   |

----

Index

|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | At June 30,    |   |      | At December 31, |   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|-----------|-----------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | 2009           |   |      | 2008            |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   | (In thousands) |   |
| Residential Real Estate (1):                                                                                                                                                                                                                                                                                                                                                                                            |   |           |   |      |            |   |
| Special mention                                                                                                                                                                                                                                                                                                                                                                                                         |   | $              | 368    |      |            | $      | 379 |   |
| Substandard                                                                                                                                                                                                                                                                                                                                                                                                             |   |           | 1,815  |  (2) |            |   | 1,552 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           |   |      |            |   |   |   |
| All Other Loans (3):                                                                                                                                                                                                                                                                                                                                                                                                    |   |           |   |      |            |   |   |   |
| Special mention                                                                                                                                                                                                                                                                                                                                                                                                         |   |           | 21,056 |      |            |   | 17,984 |   |
| Substandard                                                                                                                                                                                                                                                                                                                                                                                                             |   |           | 33,285 |      |            |   | 22,975 |   |
| Doubtful                                                                                                                                                                                                                                                                                                                                                                                                                |   |           | 300    |      |            |   | 894 |   |
| Loss                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           | -      |      |            |   | - |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           |   |      |            |   |   |   |
| Foreclosed Assets:                                                                                                                                                                                                                                                                                                                                                                                                      |   |           |   |      |            |   |   |   |
| Other real estate owned                                                                                                                                                                                                                                                                                                                                                                                                 |   |           | 644    |      |            |   | 998 |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           |   |      |            |   |   |   |
| Total classified assets                                                                                                                                                                                                                                                                                                                                                                                                 |   | $              | 57,468 |      |            | $      | 44,782 |   |
| _____________________________________________________(1)   Includes one-to-four family loans and home equity loans and lines of credit.(2)   Includes ten residential relationships, four of which are in foreclosure or liquidation proceedings.(3)   At June 30, 2009, includes $14.6 million of construction loans for one- to-four family or condominium construction. |

----

Index

|                                                               |   | Three Months Ended June 30,  |      |
|--------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                               |   | 2009                         |      |   | 2008 |   |
|                                                               |   |                         |      |   | Interest |   |   |   |   |   |   |   |   | Interest |   |   |   |   |
|                                                               |   | Average                      |      |   | and |   |   | Yield/ |   |   | Average |   |   | and |   |   | Yield/ |   |
|                                                               |   | Balance                      |      |   | Dividends |   |   | Cost |   |   | Balance |   |   | Dividends |   |   | Cost |   |
|                                                               |   |  (Dollars in thousands) |      |
| Interest-earning assets:                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                                             |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Residential real estate(1)                             |   | $                            | 341,193   |   |   | $ | 4,678 |   |   |   | 5.48 | % |   | $ | 356,721 |   |   | $ | 4,926 |   |   |   | 5.52 | % |
|   Commercial real estate                                 |   |                         | 290,205   |   |   |   | 4,194 |   |   |   | 5.78 | % |   |   | 257,831 |   |   |   | 4,010 |   |   |   | 6.22 | % |
|   Home equity                                            |   |                         | 120,703   |   |   |   | 1,365 |   |   |   | 4.52 | % |   |   | 117,106 |   |   |   | 1,643 |   |   |   | 5.61 | % |
|   Commercial and industrial                              |   |                         | 82,202    |   |   |   | 1,112 |   |   |   | 5.41 | % |   |   | 83,228 |   |   |   | 1,302 |   |   |   | 6.26 | % |
|   Consumer and other                                     |   |                         | 26,579    |   |   |   | 372 |   |   |   | 5.60 | % |   |   | 30,418 |   |   |   | 414 |   |   |   | 5.44 | % |
|     Total loans                                |   |                         | 860,882   |   |   |   | 11,721 |   |   |   | 5.45 | % |   |   | 845,304 |   |   |   | 12,295 |   |   |   | 5.82 | % |
| Investment securities                                              |   |                         | 283,005   |   |   |   | 3,390 |   |   |   | 4.79 | % |   |   | 288,502 |   |   |   | 3,560 |   |   |   | 4.94 | % |
| Other interest-earning assets                                      |   |                         | 24,421    |   |   |   | 9 |   |   |   | 0.15 | % |   |   | 12,591 |   |   |   | 118 |   |   |   | 3.75 | % |
|     Total interest-earning assets              |   |                         | 1,168,308 |   |   |   | 15,120 |   |   |   | 5.18 | % |   |   | 1,146,397 |   |   |   | 15,973 |   |   |   | 5.57 | % |
| Noninterest-earning assets(2)                                      |   |                         | 57,902    |   |   |   |   |   |   |   |   |   |   |   | 37,230 |   |   |   |   |   |   |   |   |   |
|     Total assets                               |   | $                            | 1,226,210 |   |   |   |   |   |   |   |   |   |   | $ | 1,183,627 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                      |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                   |   | $                            | 116,078   |   |   |   | 331 |   |   |   | 1.14 | % |   | $ | 82,335 |   |   |   | 235 |   |   |   | 1.14 | % |
| Money market accounts                                              |   |                         | 182,055   |   |   |   | 604 |   |   |   | 1.33 | % |   |   | 173,958 |   |   |   | 784 |   |   |   | 1.80 | % |
| NOW accounts                                                       |   |                         | 29,615    |   |   |   | 34 |   |   |   | 0.46 | % |   |   | 33,332 |   |   |   | 45 |   |   |   | 0.54 | % |
| Certificates of deposit                                            |   |                         | 361,356   |   |   |   | 2,675 |   |   |   | 2.96 | % |   |   | 364,017 |   |   |   | 3,295 |   |   |   | 3.62 | % |
|     Total interest-bearing deposits            |   |                         | 689,104   |   |   |   | 3,644 |   |   |   | 2.12 | % |   |   | 653,642 |   |   |   | 4,359 |   |   |   | 2.67 | % |
| FHLB advances                                                      |   |                         | 164,955   |   |   |   | 1,704 |   |   |   | 4.13 | % |   |   | 170,052 |   |   |   | 1,603 |   |   |   | 3.77 | % |
| Other interest-bearing liabilities                                 |   |                         | 33,140    |   |   |   | 229 |   |   |   | 2.76 | % |   |   | 12,579 |   |   |   | 103 |   |   |   | 3.28 | % |
|     Total interest-bearing liabilities         |   |                         | 887,199   |   |   |   | 5,577 |   |   |   | 2.51 | % |   |   | 836,273 |   |   |   | 6,065 |   |   |   | 2.90 | % |
| Demand deposits                                                    |   |                         | 114,321   |   |   |   |   |   |   |   |   |   |   |   | 108,348 |   |   |   |   |   |   |   |   |   |
| Other noninterest-bearing liabilities                              |   |                         | 8,189     |   |   |   |   |   |   |   |   |   |   |   | 10,765 |   |   |   |   |   |   |   |   |   |
|     Total liabilities                          |   |                         | 1,009,709 |   |   |   |   |   |   |   |   |   |   |   | 955,386 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                               |   |                         | 216,501   |   |   |   |   |   |   |   |   |   |   |   | 228,241 |   |   |   |   |   |   |   |   |   |
|     Total liabilities and stockholders' equity |   | $                            | 1,226,210 |   |   |   |   |   |   |   |   |   |   | $ | 1,183,627 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                |   |                         |      |   |   | $ | 9,543 |   |   |   |   |   |   |   |   |   |   | $ | 9,908 |   |   |   |   |   |
| Interest rate spread(3)                                            |   |                         |      |   |   |   |   |   |   |   | 2.67 | % |   |   |   |   |   |   |   |   |   |   | 2.67 | % |
| Net interest-earning assets(4)                                     |   | $                            | 281,109   |   |   |   |   |   |   |   |   |   |   | $ | 310,124 |   |   |   |   |   |   |   |   |   |
| Net interest margin(5)                                             |   |                         |      |   |   |   |   |   |   |   | 3.27 | % |   |   |   |   |   |   |   |   |   |   | 3.46 | % |
| Average interest-earning assets to                                 |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      average interest-bearing liabilities |   |                         |      |   |   |   |   |   |   |   | 131.68 | % |   |   |   |   |   |   |   |   |   |   | 137.08 | % |
|                                                               |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                               |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | (1) | Includes loans held for sale. |
|--------|-----|-------------------------------|

|   | (2) | Includes bank-owned life insurance, the income on which is classified as non-interest income. |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (3) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (5) | Net interest margin represents annualized net interest income divided by average total interest-earning assets. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

----

Index

|                                                             |   | Three Months Ended June 30, |   |
|------------------------------------------------------------------|--------|-----------------------------|--------|
|                                                             |   | 2009 vs. 2008               |   |
|                                                             |   | Increase (Decrease) Due to  |   |
|                                                             |   | Volume                      |   |   | Rate |   |   | Net |   |
|                                                             |   | (In thousands)              |   |
|                                                             |   |                        |   |   |   |   |   |   |   |
| Interest-earning assets:                                         |   |                        |   |   |   |   |   |   |   |
| Loans:                                                           |   |                        |   |   |   |   |   |   |   |
|   Residential real estate(1)                           |   | $                           | (212   | ) |   | $ | (36 | ) |   | $ | (248 | ) |
|   Commercial real estate                               |   |                        | 481    |   |   |   | (297 | ) |   |   | 184 |   |
|   Home equity                                          |   |                        | 49     |   |   |   | (327 | ) |   |   | (278 | ) |
|   Commercial and industrial                            |   |                        | (16    | ) |   |   | (174 | ) |   |   | (190 | ) |
|   Consumer and other                                   |   |                        | (53    | ) |   |   | 11 |   |   |   | (42 | ) |
|      Total loans                        |   |                        | 249    |   |   |   | (823 | ) |   |   | (574 | ) |
| Investment securities                                            |   |                        | (67    | ) |   |   | (103 | ) |   |   | (170 | ) |
| Other interest-earning assets                                    |   |                        | 58     |   |   |   | (167 | ) |   |   | (109 | ) |
|      Total interest-earning assets      |   |                        | 240    |   |   |   | (1,093 | ) |   |   | (853 | ) |
|                                                             |   |                        |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                    |   |                        |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                 |   |                        | 96     |   |   |   | - |   |   |   | 96 |   |
| Money market accounts                                            |   |                        | 35     |   |   |   | (215 | ) |   |   | (180 | ) |
| NOW accounts                                                     |   |                        | (5     | ) |   |   | (6 | ) |   |   | (11 | ) |
| Certificates of deposit                                          |   |                        | (24    | ) |   |   | (596 | ) |   |   | (620 | ) |
|      Total interest-bearing deposits    |   |                        | 102    |   |   |   | (817 | ) |   |   | (715 | ) |
| FHLB advances                                                    |   |                        | (49    | ) |   |   | 150 |   |   |   | 101 |   |
| Other interest-bearing liabilities                               |   |                        | 144    |   |   |   | (18 | ) |   |   | 126 |   |
|      Total interest-bearing liabilities |   |                        | 197    |   |   |   | (685 | ) |   |   | (488 | ) |
|                                                             |   |                        |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income                                    |   | $                           | 43     |   |   | $ | (408 | ) |   | $ | (365 | ) |
|                                                             |   |                        |   |   |   |   |   |   |   |   |   |   |
| (1)  Includes loans held for sale.                     |   |                        |   |   |   |   |   |   |   |   |   |   |

----

Index

----

Index

----

Index

|                                                               |   | Six Months Ended June 30,    |      |
|--------------------------------------------------------------------|--------|------------------------------|-----------|
|                                                               |   | 2009                         |      |   | 2008 |   |
|                                                               |   |                         |      |   | Interest |   |   |   |   |   |   |   |   | Interest |   |   |   |   |
|                                                               |   | Average                      |      |   | and |   |   | Yield/ |   |   | Average |   |   | and |   |   | Yield/ |   |
|                                                               |   | Balance                      |      |   | Dividends |   |   | Cost |   |   | Balance |   |   | Dividends |   |   | Cost |   |
|                                                               |   |  (Dollars in thousands) |      |
| Interest-earning assets:                                           |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                                             |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Residential real estate(1)                             |   | $                            | 348,090   |   |   | $ | 9,621 |   |   |   | 5.53 | % |   | $ | 352,739 |   |   | $ | 9,849 |   |   |   | 5.58 | % |
|   Commercial real estate                                 |   |                         | 286,418   |   |   |   | 8,382 |   |   |   | 5.85 | % |   |   | 253,397 |   |   |   | 8,032 |   |   |   | 6.34 | % |
|   Home equity loans                                      |   |                         | 121,034   |   |   |   | 2,784 |   |   |   | 4.60 | % |   |   | 117,181 |   |   |   | 3,437 |   |   |   | 5.87 | % |
|   Commercial and industrial                              |   |                         | 82,502    |   |   |   | 2,224 |   |   |   | 5.39 | % |   |   | 82,803 |   |   |   | 2,690 |   |   |   | 6.50 | % |
|   Consumer and other                                     |   |                         | 27,163    |   |   |   | 761 |   |   |   | 5.60 | % |   |   | 30,684 |   |   |   | 834 |   |   |   | 5.44 | % |
|     Total loans                                |   |                         | 865,207   |   |   |   | 23,772 |   |   |   | 5.50 | % |   |   | 836,804 |   |   |   | 24,842 |   |   |   | 5.94 | % |
| Investment securities                                              |   |                         | 298,316   |   |   |   | 7,261 |   |   |   | 4.87 | % |   |   | 250,191 |   |   |   | 6,178 |   |   |   | 4.94 | % |
| Other interest-earning assets                                      |   |                         | 19,568    |   |   |   | 17 |   |   |   | 0.17 | % |   |   | 17,193 |   |   |   | 359 |   |   |   | 4.18 | % |
|     Total interest-earning assets              |   |                         | 1,183,091 |   |   |   | 31,050 |   |   |   | 5.25 | % |   |   | 1,104,188 |   |   |   | 31,379 |   |   |   | 5.68 | % |
| Noninterest-earning assets(2)                                      |   |                         | 55,557    |   |   |   |   |   |   |   |   |   |   |   | 35,558 |   |   |   |   |   |   |   |   |   |
|     Total assets                               |   | $                            | 1,238,648 |   |   |   |   |   |   |   |   |   |   | $ | 1,139,746 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                      |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                   |   | $                            | 110,900   |   |   |   | 620 |   |   |   | 1.12 | % |   | $ | 74,943 |   |   |   | 400 |   |   |   | 1.07 | % |
| Money market accounts                                              |   |                         | 176,645   |   |   |   | 1,229 |   |   |   | 1.39 | % |   |   | 174,380 |   |   |   | 1,793 |   |   |   | 2.06 | % |
| NOW accounts                                                       |   |                         | 29,977    |   |   |   | 68 |   |   |   | 0.45 | % |   |   | 32,629 |   |   |   | 85 |   |   |   | 0.52 | % |
| Certificates of deposit                                            |   |                         | 364,178   |   |   |   | 5,552 |   |   |   | 3.05 | % |   |   | 359,024 |   |   |   | 7,054 |   |   |   | 3.93 | % |
|     Total interest-bearing deposits            |   |                         | 681,700   |   |   |   | 7,469 |   |   |   | 2.19 | % |   |   | 640,976 |   |   |   | 9,332 |   |   |   | 2.91 | % |
| FHLB advances                                                      |   |                         | 184,619   |   |   |   | 3,440 |   |   |   | 3.73 | % |   |   | 143,285 |   |   |   | 2,904 |   |   |   | 4.05 | % |
| Other interest-bearing liabilities                                 |   |                         | 32,463    |   |   |   | 443 |   |   |   | 2.73 | % |   |   | 12,085 |   |   |   | 204 |   |   |   | 3.38 | % |
|     Total interest-bearing liabilities         |   |                         | 898,782   |   |   |   | 11,352 |   |   |   | 2.53 | % |   |   | 796,346 |   |   |   | 12,440 |   |   |   | 3.12 | % |
| Demand deposits                                                    |   |                         | 112,719   |   |   |   |   |   |   |   |   |   |   |   | 105,066 |   |   |   |   |   |   |   |   |   |
| Other noninterest-bearing liabilities                              |   |                         | 8,567     |   |   |   |   |   |   |   |   |   |   |   | 10,507 |   |   |   |   |   |   |   |   |   |
|     Total liabilities                          |   |                         | 1,020,068 |   |   |   |   |   |   |   |   |   |   |   | 911,919 |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                               |   |                         | 218,580   |   |   |   |   |   |   |   |   |   |   |   | 227,827 |   |   |   |   |   |   |   |   |   |
|     Total liabilities and stockholders' equity |   | $                            | 1,238,648 |   |   |   |   |   |   |   |   |   |   | $ | 1,139,746 |   |   |   |   |   |   |   |   |   |
|                                                               |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                |   |                         |      |   |   | $ | 19,698 |   |   |   |   |   |   |   |   |   |   | $ | 18,939 |   |   |   |   |   |
| Interest rate spread(3)                                            |   |                         |      |   |   |   |   |   |   |   | 2.72 | % |   |   |   |   |   |   |   |   |   |   | 2.56 | % |
| Net interest-earning assets(4)                                     |   | $                            | 284,309   |   |   |   |   |   |   |   |   |   |   | $ | 307,842 |   |   |   |   |   |   |   |   |   |
| Net interest margin(5)                                             |   |                         |      |   |   |   |   |   |   |   | 3.33 | % |   |   |   |   |   |   |   |   |   |   | 3.43 | % |
| Average interest-bearing assets to                                 |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      average interest-bearing liabilities |   |                         |      |   |   |   |   |   |   |   | 131.63 | % |   |   |   |   |   |   |   |   |   |   | 138.66 | % |
|                                                               |   |                         |      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

|   | (1) | Includes loans held for sale. |
|--------|-----|-------------------------------|

|   | (2) | Includes bank-owned life insurance, the income on which is classified as non-interest income. |
|--------|-----|-----------------------------------------------------------------------------------------------|

|   | (3) | Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (4) | Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. |
|--------|-----|---------------------------------------------------------------------------------------------------------------|

|   | (5) | Net interest margin represents annualized net interest income divided by average total interest-earning assets. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------|

----

Index

|                                                             |   | Six Months Ended June 30,  |   |
|------------------------------------------------------------------|--------|----------------------------|--------|
|                                                             |   | 2009 vs. 2008              |   |
|                                                             |   | Increase (Decrease) Due to |   |
|                                                             |   | Volume                     |   |   | Rate |   |   | Net |   |
|                                                             |   | (In thousands)             |   |
|                                                             |   |                       |   |   |   |   |   |   |   |
| Interest-earning assets:                                         |   |                       |   |   |   |   |   |   |   |
| Loans:                                                           |   |                       |   |   |   |   |   |   |   |
|   Residential real estate(1)                           |   | $                          | (129   | ) |   | $ | (99 | ) |   | $ | (228 | ) |
|   Commercial real estate                               |   |                       | 997    |   |   |   | (647 | ) |   |   | 350 |   |
|   Home equity loans                                    |   |                       | 110    |   |   |   | (763 | ) |   |   | (653 | ) |
|   Commercial and industrial                            |   |                       | (10    | ) |   |   | (456 | ) |   |   | (466 | ) |
|   Consumer and other                                   |   |                       | (98    | ) |   |   | 25 |   |   |   | (73 | ) |
|      Total loans                        |   |                       | 870    |   |   |   | (1,940 | ) |   |   | (1,070 | ) |
| Investment securities                                            |   |                       | 1,172  |   |   |   | (89 | ) |   |   | 1,083 |   |
| Other interest-earning assets                                    |   |                       | 44     |   |   |   | (386 | ) |   |   | (342 | ) |
|      Total interest-earning assets      |   |                       | 2,086  |   |   |   | (2,415 | ) |   |   | (329 | ) |
|                                                             |   |                       |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                    |   |                       |   |   |   |   |   |   |   |   |   |   |
| Savings accounts                                                 |   |                       | 200    |   |   |   | 20 |   |   |   | 220 |   |
| Money market accounts                                            |   |                       | 23     |   |   |   | (587 | ) |   |   | (564 | ) |
| NOW accounts                                                     |   |                       | (7     | ) |   |   | (10 | ) |   |   | (17 | ) |
| Certificates of deposit                                          |   |                       | 100    |   |   |   | (1,602 | ) |   |   | (1,502 | ) |
|      Total interest-bearing deposits    |   |                       | 316    |   |   |   | (2,179 | ) |   |   | (1,863 | ) |
| FHLB advances                                                    |   |                       | 785    |   |   |   | (249 | ) |   |   | 536 |   |
| Other interest-bearing liabilities                               |   |                       | 285    |   |   |   | (46 | ) |   |   | 239 |   |
|      Total interest-bearing liabilities |   |                       | 1,386  |   |   |   | (2,474 | ) |   |   | (1,088 | ) |
|                                                             |   |                       |   |   |   |   |   |   |   |   |   |   |
| Change in net interest income                                    |   | $                          | 700    |   |   | $ | 59 |   |   | $ | 759 |   |
|                                                             |   |                       |   |   |   |   |   |   |   |   |   |   |
| (1)  Includes loans held for sale.                     |   |                       |   |   |   |   |   |   |   |   |   |   |

----

Index

----

Index

----

Index

| Net Interest Income At-Risk |
|-----------------------------|
|                        |   |   |   |   |
|                        |   | Estimated Increase (Decrease) |   | Estimated Increase (Decrease) |
| Change in Interest Rates    |   | in NII |   | in NII |
| (Basis Points)              |   | (June 30, 2009) |   | (December 31, 2008) |
|                        |   |   |   |   |
| -100                        |   | NA |   | NA |
| Stable                      |   | 0.0% |   | 0.0% |
| +200                        |   | 1.6% |   | (3.3)% |

----

Index

|               |   |         | June 30, 2009 |
|--------------------|--------|--------------|---------------|
|               |   |         |          |   |   |   |   |   |   |   |   | NPV as a Percentage of Present |
|               |   |         |          |   |   |   |   |   |   |   |   | Value of Assets (3) |
| Change in          |   |         |          |   | Estimated Increase (Decrease) inNPV |   |   |   |   | Increase |
| Interest Rates     |   | Estimated    |          |   |   |   |   |   |   |   | (Decrease) |
| (basis points) (1) |   | NPV (2) |          | Amount |   | Percent |   | NPV Ratio (4) |   | (basis points) |
|               |   |         |          |   |              (Dollars in thousands) |   |   |   |   |   |   |   |
|               |   |         |          |   |   |   |   |   |   |   |   |   |   |   |   |   |
|               | +300   |         |          | $ | 117,066 |   |   | $ | (52,317 | ) |   |   | (31 | )% |   |   | 10.36 | % |   |   | (338 | ) |
|               | +200   |         |          |   | 140,833 |   |   |   | (28,551 | ) |   |   | (17 | ) |   |   | 12.06 |   |   |   | (169 | ) |
|               | +100   |         |          |   | 158,614 |   |   |   | (10,770 | ) |   |   | (6 | ) |   |   | 13.19 |   |   |   | (56 | ) |
|               | 0      |         |          |   | 169,383 |   |   |   |   |   |   |   |   |   |   |   | 13.75 |   |   |   |   |   |

|                                                                                                                          |   |         | December 31, 2008 |
|-------------------------------------------------------------------------------------------------------------------------------|--------|--------------|-------------------|
|                                                                                                                          |   |         |              |   |   |   |   |   |   |   |   | NPV as a Percentage of Present |
|                                                                                                                          |   |         |              |   |   |   |   |   |   |   |   | Value of Assets (3) |
| Change in                                                                                                                     |   |         |              |   | Estimated Increase (Decrease) inNPV |   |   |   |   | Increase |
| Interest Rates                                                                                                                |   | Estimated    |              |   |   |   |   |   |   |   |   |   |   | (Decrease) |
| (basis points) (1)                                                                                                            |   | NPV (2) |              |   | Amount |   |   | Percent |   | NPV Ratio (4) |   | (basis points) |
|                                                                                                                          |   |         |              |   |           (Dollars in thousands) |   |   |   |   |   |   |   |
|                                                                                                                          |   |         |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                          | +300   |         |              | $ | 122,901 |   |   | $ | (66,712 | ) |   |   | (35 | )% |   |   | 10.52 | % |   |   | (424 | ) |
|                                                                                                                          | +200   |         |              |   | 147,220 |   |   |   | (42,393 | ) |   |   | (22 | ) |   |   | 12.19 |   |   |   | (257 | ) |
|                                                                                                                          | +100   |         |              |   | 170,707 |   |   |   | (18,906 | ) |   |   | (10 | ) |   |   | 13.68 |   |   |   | (108 | ) |
|                                                                                                                          | 0      |         |              |   | 189,613 |   |   |   |   |   |   |   |   |   |   |   | 14.76 |   |   |   |   |   |
| _____________________(1) Assumes an instantaneous uniform change in interest rates at all maturities.                    |   |
| (2) NPV is the discounted present value of expected cash flows from assets, liabilities and off-balance sheet contracts. |   |
| (3) Present value of assets represents the discounted present value of incoming cash flows on interest-earning assets.   |   |
| (4) NPV ratio represents NPV divided by the present value of assets.                                                     |   |         |              |   |   |

----

Index

----

Index

----

Index

|                                   |   | Payments Due by Period (in thousands) |    |
|----------------------------------------|--------|---------------------------------------|---------|
|                                   |   | Less Than                             |    |   | One to Three |   |   | Three to Five |   |   | More than |   |   |   |   |
|                                   |   | One Year                              |    |   | Years |   |   | Years |   |   | Five Years |   |   | Total |   |
| Contractual Obligations:               |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |
|  Certificates of deposit          |   | $                                     | 238,102 |   |   | $ | 92,032 |   |   | $ | 28,454 |   |   | $ | - |   |   | $ | 358,588 |   |
|  Federal Home Loan Bank advances  |   |                                  | 30,958  |   |   |   | 53,859 |   |   |   | 48,232 |   |   |   | 28,056 |   |   |   | 161,105 |   |
|  Repurchase agreements            |   |                                  | 13,146  |   |   |   | - |   |   |   | - |   |   |   | 20,000 |   |   |   | 33,146 |   |
|  Standby letters of credit        |   |                                  | 1,404   |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,404 |   |
|  Operating leases                 |   |                                  | 596     |   |   |   | 880 |   |   |   | 701 |   |   |   | 2,751 |   |   |   | 4,928 |   |
|  Capitalized leases               |   |                                  | 406     |   |   |   | 812 |   |   |   | 813 |   |   |   | 6,966 |   |   |   | 8,997 |   |
|  Future benefits to be paid under |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    retirement plans     |   |                                  | 198     |   |   |   | 3,064 |   |   |   | 1,037 |   |   |   | 760 |   |   |   | 5,059 |   |
| Total                                  |   | $                                     | 284,810 |   |   | $ | 150,647 |   |   | $ | 79,237 |   |   | $ | 58,533 |   |   | $ | 573,227 |   |
| Commitments:                           |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Commitments to extend credit     |   | $                                     | 211,958 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 211,958 |   |
|  Commitment to invest in venture  |   |                                  |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    capital fund         |   |                                  | 800     |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 800 |   |
| Total                                  |   | $                                     | 212,758 |   |   | $ | - |   |   | $ | - |   |   | $ | - |   |   | $ | 212,758 |   |

|                                              |   |   |   |              |   | To Be Well Capitalized |   |
|---------------------------------------------------|--------|--------|--------|-------------------|--------|------------------------|--------|
|                                              |   |   |   | For Capital       |   | Under Regulatory       |   |
|                                              |   | Actual |   | Adequacy Purposes |   | Framework              |   |
| As of June 30, 2009:                              |   |   |   |              |   |                   |   |
|     Total risk-based capital  |   | 19.22% |   | 8.00%             |   | 10.00%                 |   |
|                                              |   |   |   |              |   |                   |   |
|     Tier 1 risk-based capital |   | 18.20% |   | 4.00%             |   | 6.00%                  |   |
|                                              |   |   |   |              |   |                   |   |
|     Tier 1 (core) capital     |   | 13.08% |   | 4.00%             |   | 5.00%                  |   |
|                                              |   |   |   |              |   |                   |   |
|     Tangible equity           |   | 13.08% |   | 1.50%             |   |  N/A              |   |
|                                              |   |   |   |              |   |                   |   |
| As of December 31, 2008:                          |   |   |   |              |   |                   |   |
|     Total risk-based capital  |   | 18.71% |   | 8.00%             |   | 10.00%                 |   |
|                                              |   |   |   |              |   |                   |   |
|     Tier 1 risk-based capital |   | 17.76% |   | 4.00%             |   | 6.00%                  |   |
|                                              |   |   |   |              |   |                   |   |
|     Tier 1 (core) capital     |   | 12.31% |   | 4.00%             |   | 5.00%                  |   |
|                                              |   |   |   |              |   |                   |   |
|     Tangible equity           |   | 12.31% |   | 1.50%             |   |  N/A              |   |

----

Index

| ITEM 3. | Quantitative and Qualitative Disclosures About Market Risk |
|---------|------------------------------------------------------------|

| ITEM 4. | Controls and Procedures |
|---------|-------------------------|

A

| ITEM 1. | Legal Proceedings |
|---------|-------------------|

| ITEM 1A. | Risk Factors |
|----------|--------------|

----

Index

| ·   | having to pay certain costs relating to the proposed merger, such as legal, accounting, financial advisor, filing, printing and mailing fees, and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | diverting the focus of management of each of the companies from pursuing other opportunities that could be beneficial to the companies, in each case, without realizing any of the benefits of having the merger completed. |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | timely and successfully integrate the operations of United Financial and CNB Financial; |
|--------------------|-----------------------------------------------------------------------------------------|

| ·   | maintain existing relationships with Commonwealth National Bank’s depositors and to minimize withdrawals of deposits subsequent to the merger; |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | maintain and enhance existing relationships with borrowers to limit potential losses from loans made by Commonwealth National Bank; |
|--------------------|-------------------------------------------------------------------------------------------------------------------------------------|

| ·   | control the incremental non-interest expense from United Financial to maintain overall operating efficiencies; |
|--------------------|----------------------------------------------------------------------------------------------------------------|

| ·   | retain key personnel; and |
|--------------------|---------------------------|

| ·   | compete effectively in the communities served by Commonwealth National Bank. |
|--------------------|------------------------------------------------------------------------------|

----

Index

| ITEM 2. | Unregistered Sales of Equity Securities and Use of Proceeds |
|---------|-------------------------------------------------------------|

|                          |   |                |    |   |           |   |   | (c)                        |   |   | (d)                                      |   |
|-------------------------------|--------|---------------------|---------|--------|----------------|--------|--------|----------------------------|--------|--------|------------------------------------------|--------|
|                          |   |                |    |   |           |   |   | Total Number of            |   |   | Maximum Number                           |   |
|                          |   |                |    |   |           |   |   | Shares                     |   |   | (or Approximate                          |   |
|                          |   | (a)                 |    |   | (b)            |   |   | (or Units)                 |   |   | Dollar Value) of                         |   |
|                          |   | Total Number        |    |   | Average Price  |   |   | Purchased as Part          |   |   | Shares (or Units) that                   |   |
|                          |   | of Shares           |    |   | Paid Per       |   |   | of Publicly                |   |   | May Yet Be                               |   |
| Period                        |   | (or Units)Purchased |    |   | Share(or Unit) |   |   | Announced Plansor Programs |   |   | Purchased Under thePlans or Programs (1) |   |
|                          |   |                |    |   |           |   |   |                       |   |   |                                     |   |
| April 1 - 30, 2009            |   |                | 40,000  |   |           | $      | 13.10  |                       |   |   | 40,000                                   |   |   |   | 479,738 |   |
|                          |   |                |    |   |           |   |   |                       |   |   |                                     |   |   |   |   |   |
| May 1 - 31, 2009              |   |                | 89,900  |   |           |   | 13.15  |                       |   |   | 89,900                                   |   |   |   | 389,838 |   |
|                          |   |                |    |   |           |   |   |                       |   |   |                                     |   |   |   |   |   |
| June 1 - 30, 2009             |   |                | 131,959 | (2)    |           |   | 12.93  |                       |   |   | 121,500                                  |   |   |   | 268,338 |   |
|     Total |   |                | 261,859 |   |           | $      | 13.04  |                       |   |   | 251,400                                  |   |   |   |   |   |

| _________________________(1)   On February 19, 2009, the Board of Directors approved a plan to repurchase up to 5%, or approximately 841,138 shares, of the Company’s common stock. Under the plan, the Company intends to repurchase shares from time to time, depending on market conditions and will continue until it is completed. |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                                                                                                                                                                                                                           |
| (2)    Includes the withholding of 10,459 shares at $13.14 per share subject to restricted stock awards under the United Financial Bancorp, Inc. 2008 Equity Incentive Plan as payment of taxes due upon the vesting of the restricted stock awards.                                                                                          |

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

----

Index

| ITEM 4. | Submission of Matters to a Vote of Security Holders |
|---------|-----------------------------------------------------|

| 1. | The following individuals were elected as directors, each for a three-year term by the following vote: |
|----|--------------------------------------------------------------------------------------------------------|

|                   |   | FOR        |   | WITHHELD |
|------------------------|--------|------------|--------|----------|
| Kevin E. Ross          |   | 14,622,922 |   | 666,518  |
| Robert A. Stewart, Jr. |   | 14,883,513 |   | 405,927  |
| Thomas H. Themistos    |   | 14,886,972 |   | 402,468  |

| 2. | The appointment of Grant Thornton LLP as independent registered public accounting firm for the fiscal year ending December 31, 2009 was ratified by the stockholders by the following vote: |
|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| FOR        |   | AGAINST |   | ABSTENTIONS |
|------------|--------|---------|--------|-------------|
| 15,215,584 |   | 65,016  |   | 8,840       |

| ITEM 5. | Other Information |
|---------|-------------------|

| ITEM 6. | Exhibits. |
|---------|-----------|

| 3.1    | Articles of Incorporation of United Financial Bancorp, Inc. (1)                                                                                                                                             |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.2    | Amended and Restated Bylaws of United Financial Bancorp, Inc. (2)                                                                                                                                           |
| 4      | Form of Common Stock Certificate of United Financial Bancorp, Inc. (1)                                                                                                                                      |
| 31.1   | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer                                                                                                                                           |
| 31.2   | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer                                                                                                                                           |
| 32     | Section 1350 Certification of Chief Executive Officer and Chief Financial Officer                                                                                                                           |
|   |                                                                                                                                                                                                        |
| (1)    | Incorporated by reference to the Registration Statement on Form S-1 of United Financial Bancorp, Inc. (File No. 333-144245), originally filed with the Securities and Exchange Commission on June 29, 2007. |
| (2)    | Incorporated by reference to the Form 10-K of United Financial Bancorp, Inc. filed with the Securities and Exchange Commission on March 13, 2009.                                                           |
|   |                                                                                                                                                                                                        |

----

Index

T

|                 |   | United Financial Bancorp, Inc.                       |
|----------------------|--------|------------------------------------------------------|
|                 |   |                                                 |
|                 |   |                                                 |
| Date: August 7, 2009 | By:    | /s/ Richard B. Collins                               |
|                 |   | Richard B. Collins                                   |
|                 |   | Chairman, President and Chief Executive Officer      |
|                 |   |                                                 |
|                 |   |                                                 |
| Date: August 7, 2009 | By:    | /s/ Mark A. Roberts                                  |
|                 |   | Mark A. Roberts                                      |
|                 |   | Executive Vice President and Chief Financial Officer |