| x      | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|--------|--------------------------------------------------------------------------------------|
|   | For the Fiscal Year Ended December 31, 2010                                          |

| o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
|---|------------------------------------------------------------------------------------------|

| Maryland                                                       |   | 20-4663714                           |
|----------------------------------------------------------------|--------|--------------------------------------|
| (State or Other Jurisdiction of Incorporation or Organization) |   | (I.R.S. Employer Identification No.) |

|  68 North Plank Road, Newburgh, New York         |   |   12550 |
|------------------------------------------------------------|--------|-------------------|
|  (Address of Principal Executive Offices)   |   |  (Zip Code)  |

|   | (866) 646-0003                                        |   |
|--------|-------------------------------------------------------|--------|
|   | (Issuer’s Telephone Number including area code) |   |

|           |   | Name of Each Exchange |
|----------------|--------|-----------------------|
| Title of Class |   | On Which Registered   |

----

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

| 1. | Proxy Statement for the 2011 Annual Meeting of Stockholders (Parts II and III). |
|----|---------------------------------------------------------------------------------|

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|        |                                                                                                               | Page      |
|-------------|--------------------------------------------------------------------------------------------------------------------|-----------|
|        |                                                                                                               |      |
| PART I      |                                                                                                               | 4         |
|        |                                                                                                               |      |
| Item 1.     | Business                                                                                                           | 4         |
| Item 1A.    | Risk Factors                                                                                                       | 36        |
| Item 1B.    | Unresolved Staff Comments                                                                                          | 42        |
| Item 2.     | Properties                                                                                                         | 42        |
| Item 3.     | Legal Proceedings                                                                                                  | 42        |
| Item 4.     | [Removed and Reserved]                                                                                             | 42        |
|        |                                                                                                               |      |
| PART II     |                                                                                                               | 43        |
|        |                                                                                                               |      |
| Item 5.     | Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 43        |
| Item 6.     | Selected Financial Data                                                                                            | 43        |
| Item 7.     | Management’s Discussion and Analysis of Financial Condition and Results of Operations                        | 43        |
| Item 7A.    | Quantitative and Qualitative Disclosure About Market Risk                                                          | 50        |
| Item 8.     | Financial Statements and Supplementary Data                                                                        | 51        |
| Item 9.     | Changes In And Disagreements With Accountants On Accounting And Financial Disclosure                               | 83        |
| Item 9A(T). | Controls And Procedures                                                                                            | 83        |
| Item 9B.    | Other Information                                                                                                  | 84        |
|        |                                                                                                               |      |
| PART III    |                                                                                                               |   85 |
|        |                                                                                                               |      |
| Item 10.    | Directors, Executive Officers and Corporate Governance                                                             | 85        |
| Item 11.    | Executive Compensation                                                                                             | 85        |
| Item 12.    | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                     | 85        |
| Item 13.    | Certain Relationships and Related Transactions, and Director Independence                                          | 86        |
| Item 14.    | Principal Accountant Fees and Services                                                                             | 86        |
|        |                                                                                                               |      |
| PART IV     |                                                                                                               |   87 |
|        |                                                                                                               |      |
| Item 15.    | Exhibits and Financial Statement Schedules                                                                         | 87        |

----

----

----

|   | · | For the year ended December 31, 2010, the Company reported net income of $488 thousand or $0.23 per share as compared to a net loss of ($1.2 million) or ($0.64) per share for the year ended December 31, 2009; |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | · | A net interest margin of 3.12% for 2010 as compared to 2.77% for 2009; |
|--------|--------|------------------------------------------------------------------------|

|   | · | The Company continued to focus on diversification of loan originations and prudent underwriting standards. |
|--------|--------|------------------------------------------------------------------------------------------------------------|

|   | · | Non-performing assets decreased to $2.8 million at December 31, 2010 from $3.2 million at December 31, 2009, or 12.5%. |
|--------|--------|------------------------------------------------------------------------------------------------------------------------|

|   | · | Deposits totaled $138.2 million at December 31, 2010, with an increase in deposits of 2.1% over December 31, 2009; |
|--------|--------|--------------------------------------------------------------------------------------------------------------------|

|   | · | The Bank remains well capitalized at December 31, 2010, with a Tier I Capital ratio of 7.95%; |
|--------|--------|-----------------------------------------------------------------------------------------------|

|   | · | The Company successfully raised $780 thousand in capital during 2010 |
|--------|--------|----------------------------------------------------------------------|

----

----

----

|                                                                                                                                                                                             |   | At December 31,        |    |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|---------|
|                                                                                                                                                                                             |   | 2010                   |    |   | 2009 |   |
|                                                                                                                                                                                             |   | Amount                 |    |   | Percent |   |   | Amount |   |   | Percent |   |
|                                                                                                                                                                                             |   | (Dollars in thousands) |    |
|                                                                                                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |
| Real estate loans:                                                                                                                                                                               |   |                   |    |   |   |   |   |   |   |   |   |   |
|   One-to four-family (1)                                                                                                                                                               |   |                   | 28,437  |   |   |   | 23.1 | % |   |   | 26,831 |   |   |   | 25.1 | % |
|   Commercial                                                                                                                                                                           |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Owner Occupied                                                                                                                                                           |   |                   | 20,039  |   |   |   | 16.3 |   |   |   | 22,494 |   |   |   | 21.0 |   |
|     Non Owner Occupied                                                                                                                                                       |   |                   | 15,552  |   |   |   | 12.6 |   |   |   | 16,767 |   |   |   | 15.7 |   |
|   Multi-family                                                                                                                                                                         |   |                   | 11,634  |   |   |   | 9.5 |   |   |   | 9,416 |   |   |   | 8.8 |   |
|   Construction or development                                                                                                                                                          |   |                   | 2,566   |   |   |   | 2.1 |   |   |   | 2,798 |   |   |   | 2.6 |   |
|   Home equity                                                                                                                                                                          |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Open Ended / Revolving (2)                                                                                                                                               |   |                   | 7,468   |   |   |   | 6.1 |   |   |   | 6,253 |   |   |   | 5.8 |   |
|     Closed Ended                                                                                                                                                             |   |                   | 1,620   |   |   |   | 1.3 |   |   |   | 1,711 |   |   |   | 1.6 |   |
|       Total real estate loans                                                                                                                                      |   |                   | 87,316  |   |   |   | 70.9 |   |   |   | 86,270 |   |   |   | 80.7 |   |
|                                                                                                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other loans:                                                                                                                                                                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Commercial business                                                                                                                                                                  |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Taxi Medallion                                                                                                                                                           |   |                   | 9,679   |   |   |   | 7.9 |   |   |   | 969 |   |   |   | 0.9 |   |
|     USDA Guaranteed                                                                                                                                                          |   |                   | 5,110   |   |   |   | 4.2 |   |   |   | - |   |   |   | - |   |
|     Commercial Business Lines of Credit and Term Loans (3)                                                                                                                   |   |                   | 20,571  |   |   |   | 16.7 |   |   |   | 19,111 |   |   |   | 17.9 |   |
|   Consumer                                                                                                                                                                             |   |                   | 407     |   |   |   | 0.3 |   |   |   | 548 |   |   |   | 0.5 |   |
|       Total other loans                                                                                                                                            |   |                   | 35,767  |   |   |   | 29.1 |   |   |   | 20,628 |   |   |   | 19.3 |   |
|                                                                                                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans                                                                                                                                                                                      |   | $                      | 123,083 |   |   |   | 100.0 | % |   | $ | 106,898 |   |   |   | 100.0 | % |
|                                                                                                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                                                                                                                                                                            |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Deferred loan costs (fees) net                                                                                                                                                       |   |                   | 542     |   |   |   |   |   |   |   | 585 |   |   |   |   |   |
|   Allowance for loan losses                                                                                                                                                            |   |                   | (2,017  | ) |   |   |   |   |   |   | (1,824 | ) |   |   |   |   |
|                                                                                                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans receivable, net                                                                                                                                                                      |   | $                      | 121,608 |   |   |   |   |   |   | $ | 105,659 |   |   |   |   |   |
|                                                                                                                                                                                             |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Includes loans Held For Sale at December 31, 2010 of $400,000.                                                                                                                               |   |                   |    |   |   |
| (2) Does not include unused lines of credit of $5.0 million and $5.2 million at December 31, 2010 and 2009, respectively.                                                                        |   |                   |    |   |   |
| (3) Includes business lines of credit of $13.3 million and $13.1 million but does not include unused business lines of $5.8 million and $6.4 million at December 31, 2010 and 2009, respectively |   |

----

| Amounts (in thousands) due in:    |   | One-to-Four Family & Home Equity Loans |   |   | Multifamily & CRE |   |   | Commercial Business |   |   | Construction or Development |   |   | Consumer |   |   | Total  |   |
|-----------------------------------|--------|--------------------------------------------|--------|--------|-----------------------|--------|--------|---------------------|--------|--------|-----------------------------|--------|--------|----------|--------|--------|--------|--------|
|                              |   | (In thousands)                             |   |
| One year or less                  |   | $                                          | -      |   |                  | $      | 1,173  |                |   | $      | 7,338                       |   |   | $        | 2,566  |   |   | $      | 4 |   |   | $ | 11,081 |   |
| After one year through five years |   |                                       | 275    |   |                  |   | 4,704  |                |   |   | 16,661                      |   |   |     | -      |   |   |   | 234 |   |   |   | 21,874 |   |
| After five years                  |   |                                       | 37,250 |   |                  |   | 41,348 |                |   |   | 11,361                      |   |   |     | -      |   |   |   | 169 |   |   |   | 90,128 |   |
| Total loans                       |   | $                                          | 37,525 |   |                  | $      | 47,225 |                |   | $      | 35,360                      |   |   | $        | 2,566  |   |   | $      | 407 |   |   | $ | 123,083 |   |

|                                       |   | Due After One Year |   |
|--------------------------------------------|--------|--------------------|--------|
|                                       |   | Fixed              |   |   | Adjustable |   |   | Total |   |
|                                       |   | (in thousands)     |   |
| One to Four Family & Home Equity Loans |   | $                  | 14,219 |   |   | $ | 23,306 |   |   | $ | 37,525 |   |
| Multifamily & CRE                      |   |               | 17,131 |   |   |   | 28,921 |   |   |   | 46,052 |   |
| Commercial Business                        |   |               | 19,571 |   |   |   | 8,451 |   |   |   | 28,022 |   |
| Construction or Development                |   |               | -      |   |   |   | - |   |   |   | - |   |
| Consumer                                   |   |               | 365    |   |   |   | 38 |   |   |   | 403 |   |
| Total loans                                |   | $                  | 51,286 |   |   | $ | 60,716 |   |   | $ | 112,002 |   |

----

----

|                    |   | Commercial Real Estate |   |
|-------------------------|--------|------------------------|--------|
|                    |   | At December 31,        |   |
|                    |   | 2010                   |   |   | 2009 |   |
|                    |   | Number ofLoans         |   |   | Balances(in thousands) |   | Number ofLoans |   |   | Balances(in thousands) |   |
| Apartments              |   |                   | 25     |   |   | $ | 11,634 |   |   |   | 25 |   |   | $ | 9,416 |   |
| Offices                 |   |                   | 19     |   |   |   | 7,467 |   |   |   | 19 |   |   |   | 8,905 |   |
| Warehouses              |   |                   | 5      |   |   |   | 2,810 |   |   |   | 4 |   |   |   | 1,529 |   |
| Restaurants             |   |                   | 5      |   |   |   | 3,135 |   |   |   | 5 |   |   |   | 3,269 |   |
| Mixed Use               |   |                   | 40     |   |   |   | 16,985 |   |   |   | 39 |   |   |   | 19,436 |   |
| Other                   |   |                   | 13     |   |   |   | 5,194 |   |   |   | 14 |   |   |   | 6,123 |   |
|    Total |   |                   | 107    |   |   | $ | 47,225 |   |   |   | 106 |   |   | $ | 48,678 |   |

----

|                                     |   | At December 31, |   |
|------------------------------------------|--------|-----------------|--------|
|                                     |   | 2010            |   |   | 2009 |   |
| Commercial Business Loans                |   | Number of Loans |   |   | Dollars(in thousands) |   |   | Number of Loans |   |   | Dollars(in thousands) |   |
| Builder lines of credit                  |   |            | 6      |   |   | $ | 3,052 |   |   |   | 9 |   |   | $ | 3,607 |   |
| Working capital                          |   |            | 100    |   |   |   | 7,887 |   |   |   | 94 |   |   |   | 6,591 |   |
| Real estate acquisition & investment |   |            | 20     |   |   |   | 4,082 |   |   |   | 12 |   |   |   | 2,237 |   |
| Business acquisition                     |   |            | 2      |   |   |   | 150 |   |   |   | 4 |   |   |   | 413 |   |
| Equipment purchase                       |   |            | 22     |   |   |   | 2,369 |   |   |   | 23 |   |   |   | 1,720 |   |
| Attorney lines of credit                 |   |            | 2      |   |   |   | 1,500 |   |   |   | 2 |   |   |   | 1,500 |   |
| Taxi Medallion                           |   |            | 21     |   |   |   | 9,679 |   |   |   | - |   |   |   | - |   |
| USDA Guaranteed                          |   |            | 10     |   |   |   | 5,110 |   |   |   | - |   |   |   | - |   |
| Other                                    |   |            | 18     |   |   |   | 1,531 |   |   |   | 22 |   |   |   | 4,012 |   |
| Total                                    |   |            | 201    |   |   | $ | 35,360 |   |   |   | 166 |   |   | $ | 20,080 |   |

----

----

----

----

|                                                                          |   | Years Ended December 31, |    |
|-------------------------------------------------------------------------------|--------|--------------------------|---------|
|                                                                          |   | 2010                     |    |   | 2009 |   |
|                                                                          |   | (in thousands)           |    |
| Beginning unpaid principal balance                                            |   | $                        | 106,898 |   |   | $ | 94,978 |   |
|                                                                          |   |                     |    |   |   |   |   |   |
| New Loans Originated & Advances                                           |   |                     |    |   |   |   |   |   |
|    Real estate loans                                           |   |                     |    |   |   |   |   |   |
|       One-to four-family                        |   |                     | 20,162  |   |   |   | 24,465 |   |
|       Commercial real estate                    |   |                     | 5,046   |   |   |   | 14,840 |   |
|       Construction                              |   |                     | 752     |   |   |   | 911 |   |
|       Home equity line of credit                |   |                     | 3,742   |   |   |   | 3,505 |   |
|    Commercial line of credit                                   |   |                     | 12,516  |   |   |   | 12,564 |   |
|    Commercial business loans                                   |   |                     | 14,614  |   |   |   | 4,970 |   |
|    Consumer loans                                              |   |                     | 679     |   |   |   | 555 |   |
|       Total loans originated                    |   |                     | 57,511  |   |   |   | 61,810 |   |
|                                                                          |   |                     |    |   |   |   |   |   |
| Loans Purchased:                                                              |   |                     |    |   |   |   |   |   |
|      USDA Guaranteed                                 |   |                     | 5,239   |   |   |   | - |   |
|                                                                          |   |                     |    |   |   |   |   |   |
| Loans Sold:                                                                   |   |                     |    |   |   |   |   |   |
|    Residential & Home Equity Loans                         |   |                     | (13,770 | ) |   |   | (18,467 | ) |
|    Participated to Others                                      |   |                     | (220    | ) |   |   | (227 | ) |
|                                                                          |   |                     |    |   |   |   |   |   |
| Principal repayments:                                                         |   |                     |    |   |   |   |   |   |
|       Total principal repayments                |   |                     | (31,946 | ) |   |   | (30,332 | ) |
|                                                                          |   |                     |    |   |   |   |   |   |
| Charge-offs                                                                   |   |                     | (423    | ) |   |   | (215 | ) |
| Transfer to real estate owned                                                 |   |                     | (206    | ) |   |   | (649 | ) |
|       Unpaid principal balance at end of period |   |                     | 123,083 |   |   |   | 106,898 |   |
|                                                                          |   |                     |    |   |   |   |   |   |
| Less:                                                                         |   |                     |    |   |   |   |   |   |
|       Allowance for loan losses                 |   |                     | (2,017  | ) |   |   | (1,824 | ) |
|       Net deferred loan costs                   |   |                     | 542     |   |   |   | 585 |   |
| Net loans at end of period                                                    |   | $                        | 121,608 |   |   | $ | 105,659 |   |

----

----

|                                                                                   |   | At December 31,        |   |
|----------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                   |   | 2010                   |   |   | 2009 |   |
|                                                                                   |   | (Dollars in thousands) |   |
| Non-accrual loans:                                                                     |   |                   |   |   |   |   |
| Real estate loans:                                                                     |   |                   |   |   |   |   |
|    One-to-four family                                                   |   | $                      | -      |   |   | $ | 472 |   |
|    Commercial                                                           |   |                   |   |   |   |   |   |   |
|       Owner Occupied                                     |   |                   | -      |   |   |   | - |   |
|       Non Owner Occupied                                 |   |                   | 1,174  |   |   |   | 1,108 |   |
|    Multi-family                                                         |   |                   | -      |   |   |   | - |   |
|    Construction or development                                          |   |                   | 775    |   |   |   | 1,034 |   |
|    Home equity                                                          |   |                   |   |   |   |   |   |   |
|       Open Ended / Revolving                             |   |                   | 55     |   |   |   | - |   |
|       Closed Ended                                       |   |                   | -      |   |   |   | - |   |
| Total real estate loans                                                                |   |                   | 2,004  |   |   |   | 2,614 |   |
|                                                                                   |   |                   |   |   |   |   |   |   |
| Other Loans:                                                                           |   |                   |   |   |   |   |   |   |
|    Commercial business                                                  |   |                   |   |   |   |   |   |   |
|       Taxi Medallion                                     |   |                   | -      |   |   |   | - |   |
|       USDA Guaranteed                                    |   |                   | -      |   |   |   | - |   |
|       Commercial Business Lines of Credit and Term Loans |   |                   | 505    |   |   |   | 451 |   |
|    Consumer                                                             |   |                   | -      |   |   |   | - |   |
| Total non-performing loans                                                             |   | $                      | 2,509  |   |   | $ | 3,065 |   |
|    REO, net                                                             |   |                   | 325    |   |   |   | 149 |   |
| Total non-performing assets                                                            |   | $                      | 2,834  |   |   | $ | 3,214 |   |
|                                                                                   |   |                   |   |   |   |   |   |   |
| Ratios:                                                                                |   |                   |   |   |   |   |   |   |
|    Non-performing loans to total loans                                  |   |                   | 2.04   | % |   |   | 2.87 | % |
|    Non-performing loans to total assets                                 |   |                   | 1.56   | % |   |   | 1.95 | % |
|    Non-performing assets to total assets                                |   |                   | 1.76   | % |   |   | 2.05 | % |

|         |   | One to Four    |   |   | Multi- |   |   | Commercial  |   |   | Construction or |   |   |     |   |   | Commercial |   |   |   |   |
|--------------|--------|----------------|--------|--------|--------|--------|--------|-------------|--------|--------|-----------------|--------|--------|----------|--------|--------|------------|--------|--------|--------|--------|
|         |   | Family         |   |   | Family |   |   | Real Estate |   |   | Development     |   |   | Consumer |   |   | Business   |   |   | Total  |   |
|         |   | (in thousands) |   |
|         |   |           |   |   |   |   |   |        |   |   |            |   |   |     |   |   |       |   |   |   |   |
| Sub-Standard |   | $              | 677    |   |   | $      | 1,068  |        |   | $      | 2,513           |   |   | $        | 775    |   |       | $      | -      |   |   | $ | 1,220 |   |   | $ | 6,253 |   |
| Doubtful     |   |           | -      |   |   |   | -      |        |   |   | -               |   |   |     | -      |   |       |   | -      |   |   |   | - |   |   |   | - |   |
| Loss         |   |           | -      |   |   |   | -      |        |   |   | -               |   |   |     | -      |   |       |   | -      |   |   |   | - |   |   |   | - |   |
| Total        |   | $              | 677    |   |   | $      | 1,068  |        |   | $      | 2,513           |   |   | $        | 775    |   |       | $      | -      |   |   | $ | 1,220 |   |   | $ | 6,253 |   |

----

----

|                                                                                   |   | Twelve Months Ended    |   |
|----------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                   |   | December 31,           |   |
|                                                                                   |   | 2010                   |   |   | 2009 |   |
|                                                                                   |   | (Dollars in thousands) |   |
| Balance at beginning of year                                                           |   |                   | 1,824  |   |   |   | 862 |   |
| Charge-offs                                                                            |   |                   |   |   |   |   |   |   |
|    One-to-four family                                                   |   |                   | -      |   |   |   | - |   |
|    Commercial                                                           |   |                   |   |   |   |   |   |   |
|       Owner Occupied                                     |   |                   | -      |   |   |   | - |   |
|       Non Owner Occupied                                 |   |                   | (214   | ) |   |   | - |   |
|    Multi-family                                                         |   |                   | -      |   |   |   | - |   |
|    Construction or development                                          |   |                   | (40    | ) |   |   | - |   |
|    Home equity                                                          |   |                   |   |   |   |   |   |   |
|       Open Ended / Revolving                             |   |                   | (20    | ) |   |   | - |   |
|       Closed Ended                                       |   |                   | -      |   |   |   | - |   |
|    Commercial business                                                  |   |                   |   |   |   |   |   |   |
|       Taxi Medallion                                     |   |                   | -      |   |   |   | - |   |
|       USDA Guaranteed                                    |   |                   | -      |   |   |   | - |   |
|       Commercial Business Lines of Credit and Term Loans |   |                   | (143   | ) |   |   | (204 | ) |
|    Consumer                                                             |   |                   | (6     | ) |   |   | (11 | ) |
|        Total charge-offs                            |   |                   | (423   | ) |   |   | (215 | ) |
|                                                                                   |   |                   |   |   |   |   |   |   |
| Recoveries                                                                             |   |                   |   |   |   |   |   |   |
|    One-to-four family                                                   |   |                   | -      |   |   |   | - |   |
|    Commercial                                                           |   |                   |   |   |   |   |   |   |
|       Owner Occupied                                     |   |                   | -      |   |   |   | - |   |
|       Non Owner Occupied                                 |   |                   | -      |   |   |   | - |   |
|    Multi-family                                                         |   |                   | -      |   |   |   | - |   |
|    Construction or development                                          |   |                   | -      |   |   |   | - |   |
|    Home equity                                                          |   |                   |   |   |   |   |   |   |
|       Open Ended / Revolving                             |   |                   | -      |   |   |   | - |   |
|       Closed Ended                                       |   |                   | -      |   |   |   | - |   |
|    Commercial business                                                  |   |                   |   |   |   |   |   |   |
|       Taxi Medallion                                     |   |                   | -      |   |   |   | - |   |
|       USDA Guaranteed                                    |   |                   | -      |   |   |   | - |   |
|       Commercial Business Lines of Credit and Term Loans |   |                   | 1      |   |   |   | - |   |
|    Consumer                                                             |   |                   | 1      |   |   |   | 2 |   |
|        Total recoveries                             |   |                   | 2      |   |   |   | 2 |   |
|                                                                                   |   |                   |   |   |   |   |   |   |
| Provision for losses                                                                   |   |                   | 614    |   |   |   | 1,175 |   |
| Balance at end of period                                                               |   |                   | 2,017  |   |   |   | 1,824 |   |
|                                                                                   |   |                   |   |   |   |   |   |   |
| Ratio of net charge-offs to average total loans                                        |   |                   | 0.36   | % |   |   | 0.21 | % |
| Ratio of allowance for loan losses to toal loans                                       |   |                   | 1.64   | % |   |   | 1.71 | % |

----

|                                                                                                                         |   | At December 31,        |   |
|------------------------------------------------------------------------------------------------------------------------------|--------|------------------------|--------|
|                                                                                                                         |   | 2010                   |   |   | 2009 |   |
|                                                                                                                         |   | Loan Loss Allowance    |   |   | Loan Balances by Category |   |   | Percent of Loans to Total Loans |   |   | Loan Loss Allowance |   |   | Loan Balances by Category |   |   | Percent of Loans to Total Loans |   |
|                                                                                                                         |   | (Dollars in thousands) |   |
| Allowance allocated to:                                                                                                      |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    One-to-four family                                                                                         |   |                   | 115    |   |   |   | 28,037 |   |   |   | 22.9 | % |   |   | 216 |   |   |   | 26,831 |   |   |   | 25.1 | % |
|    Commercial                                                                                                 |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Owner Occupied                                                                           |   |                   | 367    |   |   |   | 20,039 |   |   |   | 16.3 | % |   |   | 382 |   |   |   | 22,494 |   |   |   | 21.0 | % |
|       Non Owner Occupied                                                                       |   |                   | 224    |   |   |   | 15,552 |   |   |   | 12.7 | % |   |   | 304 |   |   |   | 16,767 |   |   |   | 15.7 | % |
|    Multi-family                                                                                               |   |                   | 237    |   |   |   | 11,634 |   |   |   | 9.5 | % |   |   | 164 |   |   |   | 9,416 |   |   |   | 8.8 | % |
|    Construction or development                                                                                |   |                   | 36     |   |   |   | 2,566 |   |   |   | 2.1 | % |   |   | 49 |   |   |   | 2,798 |   |   |   | 2.6 | % |
|    Home equity                                                                                                |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Open Ended / Revolving                                                                   |   |                   | 116    |   |   |   | 7,468 |   |   |   | 6.1 | % |   |   | 129 |   |   |   | 6,253 |   |   |   | 5.8 | % |
|       Closed Ended                                                                             |   |                   | 27     |   |   |   | 1,620 |   |   |   | 1.3 | % |   |   | 32 |   |   |   | 1,711 |   |   |   | 1.6 | % |
|    Commercial business                                                                                        |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Taxi Medallion                                                                           |   |                   | 167    |   |   |   | 9,679 |   |   |   | 7.9 | % |   |   | 18 |   |   |   | 969 |   |   |   | 0.9 | % |
|       USDA Guaranteed                                                                          |   |                   | -      |   |   |   | 5,110 |   |   |   | 4.2 | % |   |   | - |   |   |   | - |   |   |   | 0.0 | % |
|       Commercial Business LOC's and         Term Loans |   |                   | 466    |   |   |   | 20,571 |   |   |   | 16.8 | % |   |   | 361 |   |   |   | 19,111 |   |   |   | 17.9 | % |
|    Consumer                                                                                                   |   |                   | 5      |   |   |   | 407 |   |   |   | 0.3 | % |   |   | 11 |   |   |   | 548 |   |   |   | 0.5 | % |
| Unallocated                                                                                                                  |   |                   | 257    |   |   |   | - |   |   |   | 0.0 | % |   |   | 158 |   |   |   |   |   |   |   | 0.0 | % |
| Total allowance                                                                                                              |   | $                      | 2,017  |   |   | $ | 122,683 |   |   |   | 100.0 | % |   | $ | 1,824 |   |   | $ | 106,898 |   |   |   | 100.0 | % |

----

|                                                                                | At December 31, 2010 |      |
|-------------------------------------------------------------------------------------|----------------------|-----------|
|                                                                                |                 | Amortized |   |   | Fair |   |
|                                                                                |                 | Cost      |   |   | Value |   |
|                                                                                | (In Thousands)       |      |
|                                                                                |                 |      |   |   |   |   |
| Mortgage-backed securities:                                                         |                 |      |   |   |   |   |
|    FNMA                                                              |                 | $         | 10,891 |   |   | $ | 11,078 |   |
|    FHLMC                                                             |                 |      | 6,098 |   |   |   | 6,185 |   |
|    GNMA                                                              |                 |      | 849 |   |   |   | 865 |   |
|         Total securities available for sale |                 | $         | 17,838 |   |   | $ | 18,128 |   |

----

----

|                                                                                | At December 31, 2010 |      |   | At December 31, 2009 |   |
|-------------------------------------------------------------------------------------|----------------------|-----------|--------|----------------------|--------|
|                                                                                |                 | Amortized |   |                 | Fair   |   |   | Amortized |   |   | Fair |   |
|                                                                                |                 | Cost      |   |                 | Value  |   |   | Cost |   |   | Value |   |
|                                                                                | (In Thousands)       |      |   | (In Thousands)       |   |
|                                                                                |                 |      |   |                 |   |   |   |   |   |   |   |   |
| Investment securities available for sale:                                           |                 |      |   |                 |   |   |   |   |   |   |   |   |
|    U.S. Government agencies                                          |                 | $         | 600    |                 |   | $ | 614 |   |   | $ | 1,600 |   |   | $ | 1,626 |   |
|    Mortgage-backed securities (1)                                    |                 |      | 17,838 |                 |   |   | 18,128 |   |   |   | 25,650 |   |   |   | 25,846 |   |
|    Bank trust preferred securities                                   |                 |      | 1,300  |                 |   |   | 1,378 |   |   |   | 1,300 |   |   |   | 1,284 |   |
|         Total securities available for sale |                 | $         | 19,738 |                 |   | $ | 20,120 |   |   | $ | 28,550 |   |   | $ | 28,756 |   |
|                                                                                |                 |      |   |                 |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Consisted of government sponsored enterprises issuances                         |                 |      |   |                 |   |   |   |   |   |

----

|                                                        |   |  At December 31,        |   |
|-------------------------------------------------------------|--------|------------------------------|--------|
| Available for Sale                                          |   | 2010                         |   |   | 2009 |   |
|                                                        |   |                         |   |   |   |   |   | Weighted |   |   |   |   |   |   |   |   | Weighted |   |
|                                                        |   | Amortized                    |   |   | Fair |   |   | Average |   |   | Amortized |   |   | Fair |   |   | Average |   |
|                                                        |   | Cost                         |   |   | Value |   |   | Yield |   |   | Cost |   |   | Value |   |   | Yield |   |
|                                                        |   |  (Dollars in Thousands) |   |
| U.S. Government Agencies:                                   |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Due less than one year              |   | $                            | 600    |   |   | $ | 614 |   |   |   | 3.35 | % |   | $ | 600 |   |   | $ | 622 |   |   |   | 3.35 | % |
|     One year to less than three years   |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Three years to less than five years |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     Five years to ten years             |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|     More than ten years                 |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | 1,000 |   |   |   | 1,004 |   |   |   | 5.50 |   |
|      Total                         |   |                         | 600    |   |   |   | 614 |   |   |   | 3.35 | % |   |   | 1,600 |   |   |   | 1,626 |   |   |   | 4.69 | % |
|                                                        |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities:                                 |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Due less than one year                    |   | $                            | -      |   |   | $ | - |   |   |   | - | % |   | $ | - |   |   | $ | - |   |   |   | - | % |
|    Due after 1 year but within 5 years       |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | 374 |   |   |   | 381 |   |   |   | 3.54 |   |
|    Due after 5 years but within 10 years     |   |                         | 512    |   |   |   | 524 |   |   |   | 2.56 |   |   |   | 1,635 |   |   |   | 1,641 |   |   |   | 3.30 |   |
|    Due After 10 years                        |   |                         | 17,326 |   |   |   | 17,604 |   |   |   | 3.29 |   |   |   | 23,641 |   |   |   | 23,824 |   |   |   | 4.41 |   |
|      Total                         |   |                         | 17,838 |   |   |   | 18,128 |   |   |   | 3.27 | % |   |   | 25,650 |   |   |   | 25,846 |   |   |   | 4.32 | % |
|                                                        |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Bank Trust Preferred Securities                             |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Due less than one year                    |   | $                            | -      |   |   | $ | - |   |   |   | - | % |   | $ | - |   |   | $ | - |   |   |   | - | % |
|    Due after 1 year but within 5 years       |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Due after 5 years but within 10 years     |   |                         | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|    Due After 10 years                        |   |                         | 1,300  |   |   |   | 1,378 |   |   |   | 7.97 |   |   |   | 1,300 |   |   |   | 1,284 |   |   |   | 7.97 |   |
|      Total                         |   |                         | 1,300  |   |   |   | 1,378 |   |   |   | 7.97 | % |   |   | 1,300 |   |   |   | 1,284 |   |   |   | 7.97 | % |
|                                                        |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Total investment securities   |   | $                            | 19,738 |   |   | $ | 20,120 |   |   |   | 3.60 | % |   | $ | 28,550 |   |   | $ | 28,756 |   |   |   | 4.51 | % |

----

|                          |   | At December 31, |    |
|-------------------------------|--------|-----------------|---------|
|                          |   | 2010            |    |   | 2009 |   |
|                          |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                          |   | Amount          |    |   | Percent of Total Deposits |   |   | Weighted Average Rate |   |   | Amount |   |   | Percent of Total Deposits |   |   | Weighted Average Rate |   |
|                          |   | (In thousands)  |    |
|                          |   |            |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposit accounts       |   | $               | 17,896  |   |   |   | 12.95 | % |   |   | 0.00 | % |   | $ | 14,007 |   |   |   | 10.35 | % |   |   | 0.00 | % |
| NOW accounts                  |   |            | 7,287   |   |   |   | 5.27 | % |   |   | 0.69 | % |   |   | 5,292 |   |   |   | 3.91 | % |   |   | 0.56 | % |
| Money market accounts         |   |            | 34,682  |   |   |   | 25.09 | % |   |   | 0.98 | % |   |   | 37,578 |   |   |   | 27.76 | % |   |   | 1.36 | % |
| Regular savings accounts      |   |            | 9,426   |   |   |   | 6.82 | % |   |   | 1.02 | % |   |   | 8,995 |   |   |   | 6.65 | % |   |   | 0.94 | % |
| Certificates of Deposit       |   |            | 68,926  |   |   |   | 49.87 | % |   |   | 2.56 | % |   |   | 69,480 |   |   |   | 51.33 | % |   |   | 2.88 | % |
|     Total |   | $               | 138,217 |   |   |   | 100.00 | % |   |   | 1.63 | % |   | $ | 135,352 |   |   |   | 100.00 | % |   |   | 1.94 | % |

----

|                     |   | Period to Maturity     |   |
|--------------------------|--------|------------------------|--------|
|                     |   | At December 31, 2010   |   |
|                     |   | Less than              |   |   | One to |   |   | More than |   |   |   |   |   | Percent of |   |
|                     |   | One Year               |   |   | Three Years |   |   | Three Years |   |   | Total |   |   | Total |   |
|                     |   | (Dollars in thousands) |   |
| Less Then 1.00%          |   | $                      | 7,579  |   |   | $ | - |   |   | $ | - |   |   | $ | 7,579 |   |   |   | 11.00 | % |
| 1.00% to 2.00%           |   |                   | 11,066 |   |   |   | 8,469 |   |   |   | 1,250 |   |   |   | 20,785 |   |   |   | 30.16 | % |
| 2.01% to 3.00%           |   |                   | 4,900  |   |   |   | 10,027 |   |   |   | 1,701 |   |   |   | 16,628 |   |   |   | 24.12 | % |
| 3.01% to 4.00%           |   |                   | 11,551 |   |   |   | 2,724 |   |   |   | 1,524 |   |   |   | 15,798 |   |   |   | 22.92 | % |
| 4.01% to 5.00%           |   |                   | 4,599  |   |   |   | 715 |   |   |   | 458 |   |   |   | 5,773 |   |   |   | 8.38 | % |
| 5.00% and above          |   |                   | 1,863  |   |   |   | 500 |   |   |   | - |   |   |   | 2,363 |   |   |   | 3.43 | % |
|                     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total |   | $                      | 41,558 |   |   | $ | 22,435 |   |   | $ | 4,933 |   |   | $ | 68,926 |   |   |   | 100.00 | % |
|                     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                     |   | Period to Maturity     |   |
|                     |   | At December 31, 2009   |   |
|                     |   | Less than              |   |   | One to |   |   | More than |   |   |   |   |   |   | Percent of |   |
|                     |   | One Year               |   |   | Three Years |   |   | Three Years |   |   | Total |   |   | Total |   |
|                     |   | (Dollars in thousands) |   |
| 1.01% to 2.00%           |   | $                      | 18,059 |   |   | $ | 213 |   |   | $ | - |   |   | $ | 18,272 |   |   |   | 26.30 | % |
| 2.01% to 3.00%           |   |                   | 9,731  |   |   |   | 12,263 |   |   |   | 114 |   |   | $ | 22,108 |   |   |   | 31.82 | % |
| 3.01% to 4.00%           |   |                   | 1,962  |   |   |   | 14,028 |   |   |   | 1,277 |   |   | $ | 17,267 |   |   |   | 24.85 | % |
| 4.01% to 5.00%           |   |                   | 2,619  |   |   |   | 4,766 |   |   |   | 1,037 |   |   | $ | 8,422 |   |   |   | 12.12 | % |
| 5.00% and above          |   |                   | 1,102  |   |   |   | 2,309 |   |   |   | - |   |   | $ | 3,411 |   |   |   | 4.91 | % |
|                     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total |   | $                      | 33,473 |   |   | $ | 33,579 |   |   | $ | 2,428 |   |   | $ | 69,480 |   |   |   | 100.00 | % |

----

|                                          |   | At December 31, 2010   |   |
|-----------------------------------------------|--------|------------------------|--------|
|                                          |   | Less than $100,000     |   |   | Greater than $100,000 |   |   | Total |   |
|                                          |   | Amount                 |   |   | Weighted Average Rate |   |   | Amount |   |   | Weighted Average Rate |   |   | Amount |   |   | Weighted Average Rate |   |
|                                          |   | (Dollars in thousands) |   |
|                                          |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Within three months                           |   | $                      | 6,634  |   |   |   | 1.70 | % |   | $ | 6,186 |   |   |   | 2.16 | % |   | $ | 12,820 |   |   |   | 1.92 | % |
| After three but within six months             |   |                   | 7,374  |   |   |   | 2.60 | % |   |   | 7,943 |   |   |   | 2.97 | % |   |   | 15,317 |   |   |   | 2.79 | % |
| After six but within 12 months                |   |                   | 7,708  |   |   |   | 3.21 | % |   |   | 5,711 |   |   |   | 2.69 | % |   |   | 13,419 |   |   |   | 2.99 | % |
|     Total within one year |   |                   | 21,716 |   |   |   | 2.54 | % |   |   | 19,840 |   |   |   | 2.64 | % |   |   | 41,556 |   |   |   | 2.59 | % |
|                                          |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| After one but within two years                |   | $                      | 9,250  |   |   |   | 2.31 | % |   | $ | 8,748 |   |   |   | 2.58 | % |   | $ | 17,998 |   |   |   | 2.44 | % |
| After two but within three years              |   |                   | 1,406  |   |   |   | 2.91 | % |   |   | 3,033 |   |   |   | 1.98 | % |   |   | 4,439 |   |   |   | 2.27 | % |
| After three but within five years             |   |                   | 1,915  |   |   |   | 4.09 | % |   |   | 3,018 |   |   |   | 2.43 | % |   |   | 4,933 |   |   |   | 3.07 | % |
|                                          |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Total                 |   |                   | 34,287 |   |   |   | 2.58 | % |   |   | 34,639 |   |   |   | 2.55 | % |   |   | 68,926 |   |   |   | 2.56 | % |

----

----

----

----

----

----

----

----

----

----

----

| ·   |      the interest income we earn on our interest-earning assets, such as loans and securities; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------|

| ·   |      the interest expense we pay on our interest-bearing liabilities, such as deposits and borrowings. |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------|

----

----

|                                              |   | Year                   |   |            |   |                                |
|---------------------------------------------------|--------|------------------------|--------|-----------------|--------|-------------------------------------|
| Location                                          |   | Acquired/Leased        |   | Owned or Leased |   | Net Book Value at December 31, 2010 |
|                                              |   | (Dollars in thousands) |
| Corporate HeadquartersAnd Main Office:            |   |                   |   |            |   |                                |
|                                              |   |                   |   |            |   |                                |
| 68 North Plank RoadNewburgh, New York 12550       |   | 2004                   |   | Leased (1)      |   | $102                                |
|                                              |   |                   |   |            |   |                                |
| Branch Offices:                                   |   |                   |   |            |   |                                |
|                                              |   |                   |   |            |   |                                |
| 257 Main StreetNew Paltz, New York 12561          |   | 2004                   |   | Leased (1)      |   | $48                                 |
|                                              |   |                   |   |            |   |                                |
| 1361 North Railroad AvenueStaten Island, NY 10306 |   | 2007                   |   | Leased (1)      |   | $108                                |

----

| Year endedDecember 31, 2010 |   | High   |   |   | Low    |   |   | Cash Dividends Declared |   |
|-----------------------------|--------|--------|--------|--------|--------|--------|--------|-------------------------|--------|
|                        |   |   |   |   |   |   |   |                    |   |
| Fourth quarter              |   | $      | 3.50   |   |   | $      | 2.30   |                    |   | $ | — |   |
| Third quarter               |   |   | 3.50   |   |   |   | 3.00   |                    |   |   | — |   |
| Second quarter              |   |   | 3.20   |   |   |   | 3.00   |                    |   |   | — |   |
| First quarter               |   |   | 4.50   |   |   |   | 2.75   |                    |   |   | — |   |
|                        |   |   |   |   |   |   |   |                    |   |   |   |   |
| Year endedDecember 31, 2009 |   | High   |   |   | Low    |   |   | Cash Dividends Declared |   |
|                        |   |   |   |   |   |   |   |                    |   |   |   |   |
| Fourth quarter              |   | $      | 6.50   |   |   | $      | 3.00   |                    |   | $ | — |   |
| Third quarter               |   |   | 4.80   |   |   |   | 4.01   |                    |   |   | — |   |
| Second quarter              |   |   | 5.00   |   |   |   | 1.50   |                    |   |   | — |   |
| First quarter               |   |   | 5.00   |   |   |   | 1.10   |                    |   |   | — |   |

----

----

|                                                                                                                                                                            |   | EMPIRE STATE BANK                        |    |
|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|------------------------------------------|---------|
|                                                                                                                                                                            |   | AVERAGE BALANCE SHEET AND YIELD ANALYSIS |    |
|                                                                                                                                                                            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                            |   | Year Ended December 31,                  |    |   | Year Ended December 31, |   |
|                                                                                                                                                                            |   | 2010                                     |    |   | 2009 |   |
|                                                                                                                                                                            |   | Average                                  |    |   |   |   |   | Average |   |   | Average |   |   |   |   |   | Average |   |
|                                                                                                                                                                            |   | Balance                                  |    |   | Interest |   |   | Yield/Cost |   |   | Balance |   |   | Interest |   |   | Yield/Cost |   |
| Assets                                                                                                                                                                          |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                                                                                                                                        |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Loans                                                                                                                                                   |   | $                                        | 116,070 |   |   | $ | 6,586 |   |   |   | 5.67 | % |   | $ | 100,951 |   |   | $ | 5,784 |   |   |   | 5.73 | % |
|     Fed Funds & other investments                                                                                                                       |   |                                     | 10,604  |   |   |   | 31 |   |   |   | 0.29 | % |   |   | 11,661 |   |   |   | 31 |   |   |   | 0.26 | % |
|     Certificates of deposit                                                                                                                                 |   |                                     | 2,644   |   |   |   | 61 |   |   |   | 2.31 | % |   |   | 3,333 |   |   |   | 80 |   |   |   | 2.39 | % |
|     FRB & FHLB stock                                                                                                                                    |   |                                     | 928     |   |   |   | 56 |   |   |   | 6.03 | % |   |   | 867 |   |   |   | 51 |   |   |   | 5.88 | % |
|     Securities                                                                                                                                              |   |                                     | 27,885  |   |   |   | 1,100 |   |   |   | 3.94 | % |   |   | 32,807 |   |   |   | 1,562 |   |   |   | 4.76 | % |
|        Total interest-earning assets                                                                                                         |   | $                                        | 158,131 |   |   | $ | 7,834 |   |   |   | 4.95 | % |   | $ | 149,619 |   |   | $ | 7,508 |   |   |   | 5.02 | % |
|                                                                                                                                                                            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses                                                                                                                                                       |   |                                     | (1,735  | ) |   |   |   |   |   |   |   |   |   |   | (1,017 | ) |   |   |   |   |   |   |   |   |
| Cash & Due from banks                                                                                                                                                       |   |                                     | 1,782   |   |   |   |   |   |   |   |   |   |   |   | 1,623 |   |   |   |   |   |   |   |   |   |
| Other Non-interest earning assets                                                                                                                                               |   |                                     | 3,691   |   |   |   |   |   |   |   |   |   |   |   | 2,447 |   |   |   |   |   |   |   |   |   |
|        Total assets                                                                                                                          |   | $                                        | 161,869 |   |   |   |   |   |   |   |   |   |   | $ | 152,672 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Liabilities and  Stockholders' Equity                                                                                                                                 |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                                                                                                   |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     NOW accounts                                                                                                                                            |   | $                                        | 6,589   |   |   | $ | 48 |   |   |   | 0.73 | % |   | $ | 4,348 |   |   | $ | 20 |   |   |   | 0.45 | % |
|     Money Market accounts                                                                                                                                   |   |                                     | 36,493  |   |   |   | 402 |   |   |   | 1.10 | % |   |   | 34,823 |   |   |   | 573 |   |   |   | 1.65 | % |
|     Regular savings accounts                                                                                                                                |   |                                     | 10,354  |   |   |   | 107 |   |   |   | 1.03 | % |   |   | 10,963 |   |   |   | 151 |   |   |   | 1.38 | % |
|     Certficates of Deposit                                                                                                                                  |   |                                     | 70,588  |   |   |   | 1,916 |   |   |   | 2.71 | % |   |   | 68,070 |   |   |   | 2,263 |   |   |   | 3.32 | % |
|        Total interest-bearing deposits                                                                                                       |   | $                                        | 124,024 |   |   | $ | 2,473 |   |   |   | 1.99 | % |   | $ | 118,204 |   |   | $ | 3,007 |   |   |   | 2.54 | % |
|                                                                                                                                                                            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Borrowings                                                                                                                                              |   |                                     | 10,486  |   |   |   | 423 |   |   |   | 4.03 | % |   |   | 9,852 |   |   |   | 356 |   |   |   | 3.61 | % |
|        Total interest-bearing liabilities                                                                                                    |   | $                                        | 134,510 |   |   | $ | 2,896 |   |   |   | 2.15 | % |   | $ | 128,056 |   |   | $ | 3,363 |   |   |   | 2.63 | % |
|                                                                                                                                                                            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing liabilities                                                                                                                                                |   |                                     | 17,017  |   |   |   |   |   |   |   | . |   |   |   | 15,205 |   |   |   |   |   |   |   | . |   |
|        Total liabilities                                                                                                                     |   |                                     | 151,527 |   |   |   |   |   |   |   |   |   |   |   | 143,261 |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                                                                                                            |   |                                     | 10,342  |   |   |   |   |   |   |   |   |   |   |   | 9,411 |   |   |   |   |   |   |   |   |   |
|        Total liabilities and stockholders' equity                                                                                            |   | $                                        | 161,869 |   |   |   |   |   |   |   |   |   |   | $ | 152,672 |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                                                                             |   |                                     |    |   |   | $ | 4,938 |   |   |   |   |   |   |   |   |   |   | $ | 4,145 |   |   |   |   |   |
|                                                                                                                                                                            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average interest rate spread (1)                                                                                                                                                |   |                                     |    |   |   |   |   |   |   |   | 2.80 | % |   |   |   |   |   |   |   |   |   |   | 2.39 | % |
| Net interest margin (3)                                                                                                                                                         |   |                                     |    |   |   |   |   |   |   |   | 3.12 | % |   |   |   |   |   |   |   |   |   |   | 2.77 | % |
| Net interest-earning assets (4)                                                                                                                                                 |   | $                                        | 23,621  |   |   |   |   |   |   |   |   |   |   | $ | 21,563 |   |   |   |   |   |   |   |   |   |
| Ratio of average interest-earning asset to average interest-bearing liabilities                                                                                                 |   |                                     |    |   |   |   |   |   |   |   | 117.56 | % |   |   |   |   |   |   |   |   |   |   | 116.84 | % |
|                                                                                                                                                                            |   |                                     |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                            |   |
| (1) Average interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. |   |
| (2) Average interest rate spread including demand deposits represents the difference between the yield on average interest earning assets and total deposits.              |   |
| (3) Net interest margin represents net interest income divided by average total interest-earning assets.                                                                   |   |                                     |    |   |   |
| (4) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.                                                          |   |                                     |    |   |   |

----

|                                    |   | Year Ended December 31, |   |   | Year Ended December 31, |   |
|-----------------------------------------|--------|-------------------------|--------|--------|-------------------------|--------|
|                                    |   | 2010 vs. 2009           |   |   | 2009 vs. 2008           |   |
|                                    |   | Increase (Decrease)     |   |   |                    |   |   | Increase (Decrease) |   |
|                                    |   | Due to                  |   |   |                    |   |   | Due to |   |   |   |   |
|                                    |   | Rate                    |   |   | Volume                  |   |   | Net |   |   | Rate |   |   | Volume |   |   | Net |   |
|                                    |   | (In thousands)          |   |   | (In thousands)          |   |
| Interest earninig assets:               |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Receivable                        |   | $                       | (56    | )      |                    | $      | 858 |   |   | $ | 802 |   |   | $ | (546 | ) |   | $ | 1,162 |   |   | $ | 616 |   |
| Due from banks and                      |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   other money market deposits |   |                    | 3      |   |                    |   | (3 | ) |   |   | - |   |   |   | (194 | ) |   |   | 95 |   |   |   | (99 | ) |
| Certificates of Deposit                 |   |                    | (3     | )      |                    |   | (16 | ) |   |   | (19 | ) |   |   | (41 | ) |   |   | (100 | ) |   |   | (141 | ) |
| FRB and FHLB stock                      |   |                    | 1      |   |                    |   | 4 |   |   |   | 5 |   |   |   | 7 |   |   |   | 4 |   |   |   | 11 |   |
| Investment Securities                   |   |                    | (246   | )      |                    |   | (216 | ) |   |   | (462 | ) |   |   | (81 | ) |   |   | 573 |   |   |   | 492 |   |
|                                    |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-earning assets           |   |                    | (301   | )      |                    |   | 627 |   |   |   | 326 |   |   |   | (855 | ) |   |   | 1,734 |   |   |   | 879 |   |
|                                    |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities            |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW accounts                            |   |                    | 15     |   |                    |   | 13 |   |   |   | 28 |   |   |   | (33 | ) |   |   | 24 |   |   |   | (9 | ) |
| Money market accounts                   |   |                    | (197   | )      |                    |   | 26 |   |   |   | (171 | ) |   |   | (313 | ) |   |   | 120 |   |   |   | (193 | ) |
| Regular savings accounts                |   |                    | (36    | )      |                    |   | (8 | ) |   |   | (44 | ) |   |   | (122 | ) |   |   | (47 | ) |   |   | (169 | ) |
| Certificates of deposit                 |   |                    | (428   | )      |                    |   | 81 |   |   |   | (347 | ) |   |   | (470 | ) |   |   | 810 |   |   |   | 340 |   |
|                                    |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing deposits         |   |                    | (646   | )      |                    |   | 112 |   |   |   | (534 | ) |   |   | (938 | ) |   |   | 907 |   |   |   | (31 | ) |
|                                    |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings                              |   |                    | 43     |   |                    |   | 24 |   |   |   | 67 |   |   |   | 29 |   |   |   | 88 |   |   |   | 117 |   |
|                                    |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total interest-bearing liabilities      |   |                    | (603   | )      |                    |   | 136 |   |   |   | (467 | ) |   |   | (909 | ) |   |   | 995 |   |   |   | 86 |   |
|                                    |   |                    |   |   |                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net change in interest income           |   | $                       | 302    |   |                    | $      | 491 |   |   | $ | 793 |   |   | $ | 54 |   |   | $ | 739 |   |   | $ | 793 |   |

----

----

----

----

|                           |   |                   |   |   |     |   |   | Minimum Capital  |   |   | Classification as |   |
|--------------------------------|--------|------------------------|--------|--------|----------|--------|--------|------------------|--------|--------|-------------------|--------|
|                           |   | Bank Actual            |   |   | Adequacy |   |   | Well Capitalized |   |
|                           |   | Amount                 |   |   | Ratio    |   |   | Amount           |   |   | Ratio             |   |   | Amount |   |   | Ratio |   |
|  December 31, 2010        |   | (Dollars in thousands) |   |
| Tier I (core) capital          |   | $                      | 12,757 |   |     |   | 8.0    | %                |   | $      | 4,794             |   |   |   | 3.0 | % |   | $ | 7,991 |   |   |   | 5.0 | % |
| Risk-based capital:            |   |                   |   |   |     |   |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Tier I |   |                   | 12,757 |   |     |   | 11.8   | %                |   |   | 6,392             |   |   |   | 4.0 |   |   |   | 9,589 |   |   |   | 6.0 |   |
|     Total  |   |                   | 14,123 |   |     |   | 13.0   | %                |   |   | 8,689             |   |   |   | 8.0 |   |   |   | 10,861 |   |   |   | 10.0 |   |
|                           |   |                   |   |   |     |   |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  December 31, 2009        |   |                   |   |   |     |   |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I (core) capital          |   | $                      | 10,255 |   |     |   | 6.5    | %                |   | $      | 4,708             |   |   |   | 3.0 | % |   | $ | 7,847 |   |   |   | 5.0 | % |
| Risk-based capital:            |   |                   |   |   |     |   |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Tier I |   |                   | 10,255 |   |     |   | 10.1   | %                |   |   | N/A               |   |   |   | N/A |   |   |   | 9,417 |   |   |   | 6.0 |   |
|     Total  |   |                   | 11,535 |   |     |   | 11.3   | %                |   |   | 8,180             |   |   |   | 8.0 |   |   |   | 10,225 |   |   |   | 10.0 |   |

----

----

|   |   | /s/ Anthony P. Costa               |   |
|--------|--------|-----------------------------------------|--------|
|   |   | Anthony P. Costa,                       |   |
|   |   | Chairman and Co-Chief Executive Officer |   |
|   |   |                                    |   |

|   |   | /s/ Thomas Sperzel           |   |
|--------|--------|------------------------------|--------|
|   |   | Thomas Sperzel,              |   |
|   |   | Principal Accounting Officer |   |

----

----

| ES BANCSHARES, INC                                                                                     |   |
|--------------------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION                                                         |   |
| (Dollars In thousands)                                                                                 |   |
|                                                                                                   |   |   |   |   |   |   |
|                                                                                                   |   | December 31, |   |   | December 31, |   |
|                                                                                                   |   | 2010 |   |   | 2009 |   |
| ASSETS                                                                                                 |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |
| Cash and cash equivalents:                                                                             |   |   |   |   |   |   |
|      Cash and due from banks                                                  |   | $ | 13,027 |   |   | $ | 9,785 |   |
|      Federal funds sold and other money market investments                    |   |   | 12 |   |   |   | 5,000 |   |
|           Total cash and cash equivalents            |   |   | 13,039 |   |   |   | 14,785 |   |
| Certificates of deposit at other financial institutions                                                |   |   | 2,110 |   |   |   | 3,685 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Securities available for sale, at fair value                                                           |   |   | 20,120 |   |   |   | 28,756 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Real estate mortgage loans held for sale                                                               |   |   | 400 |   |   |   | - |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Loans receivable                                                                                       |   |   | 122,683 |   |   |   | 106,898 |   |
|      Deferred cost                                                            |   |   | 542 |   |   |   | 585 |   |
|      Allowance for loan losses                                                |   |   | (2,017 | ) |   |   | (1,824 | ) |
|           Total loans receivable, net                |   |   | 121,208 |   |   |   | 105,659 |   |
| Accrued interest receivable                                                                            |   |   | 608 |   |   |   | 627 |   |
| Federal Reserve Bank stock                                                                             |   |   | 392 |   |   |   | 308 |   |
| Federal Home Loan Bank stock                                                                           |   |   | 558 |   |   |   | 573 |   |
| Goodwill                                                                                               |   |   | 581 |   |   |   | 581 |   |
| Premises and equipment, net                                                                            |   |   | 485 |   |   |   | 648 |   |
| Prepaid FDIC Assessment                                                                                |   |   | 543 |   |   |   | 815 |   |
| Real estate owned                                                                                      |   |   | 325 |   |   |   | 149 |   |
| Other assets                                                                                           |   |   | 441 |   |   |   | 366 |   |
|           Total assets                               |   | $ | 160,810 |   |   | $ | 156,952 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                   |   |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Liabilities:                                                                                           |   |   |   |   |   |   |   |   |
| Deposits:                                                                                              |   |   |   |   |   |   |   |   |
|      Non-interest bearing                                                     |   | $ | 17,896 |   |   | $ | 14,007 |   |
|      Interest bearing                                                         |   |   | 120,321 |   |   |   | 121,345 |   |
|  Total deposits                                                                                   |   |   | 138,217 |   |   |   | 135,352 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Borrowed funds                                                                                         |   |   | 10,364 |   |   |   | 10,123 |   |
| Accrued interest payable                                                                               |   |   | 141 |   |   |   | 151 |   |
| Other liabilities                                                                                      |   |   | 1,310 |   |   |   | 1,845 |   |
|           Total liabilities                          |   |   | 150,032 |   |   |   | 147,471 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Commitments and contingencies (Note 9)                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                                   |   |   |   |   |   |   |   |   |
| Capital stock (par value $0.01; 5,000,000 shares authorized;                                           |   |   |   |   |   |
|         2,269,070 shares issued at December 31, 2010           |   |   | 22 |   |   |   | 20 |   |
|         2,071,070 shares issued at December 31, 2009           |   |   |   |   |   |   |   |   |
|      Additional paid-in-capital                                               |   |   | 19,761 |   |   |   | 18,970 |   |
|      Accumulated deficit                                                      |   |   | (9,228 | ) |   |   | (9,716 | ) |
|      Accumulated other comprehensive income                                   |   |   | 223 |   |   |   | 207 |   |
|           Total stockholders' equity                 |   |   | 10,778 |   |   |   | 9,481 |   |
|           Total liabilities and stockholders' equity |   | $ | 160,810 |   |   | $ | 156,952 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements                                                         |   |

----

| ES BANCSHARES, INC.                                                                           |   |
|-----------------------------------------------------------------------------------------------|--------|
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                         |   |
| FOR THE TWELVE MONTHS ENDED DECEMBER 31, 2010 AND 2009                                        |   |
| (Dollars in thousands, except per share data)                                                 |   |
|                                                                                          |   |   |   |   |   |   |
|                                                                                          |   | For the Twelve Months |   |
|                                                                                          |   | Ended December 31, |   |
|                                                                                          |   | 2010 |   |   | 2009 |   |
|                                                                                          |   |   |   |   |   |   |
| Interest and dividend income:                                                                 |   |   |   |   |   |   |
|    Loans                                                                       |   | $ | 6,586 |   |   | $ | 5,784 |   |
|    Securities                                                                  |   |   | 1,100 |   |   |   | 1,562 |   |
|    Certificates of deposit                                                     |   |   | 61 |   |   |   | 80 |   |
|    Fed Funds and other earning assets                                          |   |   | 87 |   |   |   | 82 |   |
|      Total interest and dividend income                              |   |   | 7,834 |   |   |   | 7,508 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Interest expense:                                                                             |   |   |   |   |   |   |   |   |
|    Deposits                                                                    |   |   | 2,473 |   |   |   | 3,007 |   |
|    Borrowed funds                                                              |   |   | 423 |   |   |   | 356 |   |
|      Total interest expense                                          |   |   | 2,896 |   |   |   | 3,363 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
|        Net interest income                                 |   |   | 4,938 |   |   |   | 4,145 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Provision for loan losses                                                                     |   |   | 614 |   |   |   | 1,175 |   |
|        Net interest income after provision for loan losses |   |   | 4,324 |   |   |   | 2,970 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Non-interest income:                                                                          |   |   |   |   |   |   |   |   |
|    Service charges and fees                                                    |   |   | 543 |   |   |   | 447 |   |
|    Net gain on sales of real estate mortgage                                   |   |   | . |   |   |   | . |   |
|      loans                                                           |   |   | 194 |   |   |   | 236 |   |
|    Net gain on sale of securities available for sale                           |   |   | 467 |   |   |   | 457 |   |
|    Other                                                                       |   |   | 149 |   |   |   | 317 |   |
|      Total non-interest income                                       |   |   | 1,353 |   |   |   | 1,457 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
| Non-interest expense:                                                                         |   |   |   |   |   |   |   |   |
|    Compensation and benefits                                                   |   |   | 2,460 |   |   |   | 2,328 |   |
|    Occupancy and equipment                                                     |   |   | 747 |   |   |   | 764 |   |
|    Data processing service fees                                                |   |   | 366 |   |   |   | 304 |   |
|    FDIC assessment                                                             |   |   | 294 |   |   |   | 273 |   |
|    Impairment of foreclosed asset                                              |   |   | 30 |   |   |   | 500 |   |
|    Other                                                                       |   |   | 1,422 |   |   |   | 1,490 |   |
|      Total non-interest expense                                      |   |   | 5,319 |   |   |   | 5,659 |   |
|                                                                                          |   |   |   |   |   |   |   |   |
|        Net income (loss) before income taxes               |   |   | 358 |   |   |   | (1,232 | ) |
| Income tax benefit                                                                            |   |   | (130 | ) |   |   | - |   |
|        Net income (loss)                                   |   | $ | 488 |   |   | $ | (1,232 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Other comprehensive income:                                                                   |   |   |   |   |   |   |   |   |
|    Net unrealized gain on available-for-sale securities                        |   |   | 16 |   |   |   | 422 |   |
| Comprehensive income (loss)                                                                   |   | $ | 504 |   |   | $ | (810 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| Weighted average:                                                                             |   |   |   |   |   |   |   |   |
|        Common shares                                       |   |   | 2,079,207 |   |   |   | 1,933,367 |   |
| Earnings (loss) per common share:                                                             |   |   |   |   |   |   |   |   |
|        Basic                                               |   | $ | 0.23 |   |   | $ | (0.64 | ) |
|        Diluted                                             |   | $ | 0.23 |   |   | $ | (0.64 | ) |
|                                                                                          |   |   |   |   |   |   |   |   |
| See accompanying notes to financial statements                                                |   |   |   |   |   |   |   |   |

----

| FOR THE YEAR ENDED DECEMBER 31, 2010 AND 2009                                          |   |
|----------------------------------------------------------------------------------------|--------|
| (Dollars in thousands, except share data)                                              |   |
|                                                                                   |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   | Additional |   |   |   |   |   | Other |   |   |   |   |
|                                                                                   |   | Capital Stock |   |   | Paid-In |   |   | Accumulated |   |   | Comprehensive |   |   |   |   |
|                                                                                   |   | Shares |   |   | Amount |   |   | Capital |   |   | Deficit |   |   | Income |   |   | Total |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2009                                                             |   |   | 1,868,505 |   |   | $ | 19 |   |   | $ | 17,911 |   |   | $ | (8,484 | ) |   | $ | (215 | ) |   | $ | 9,231 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Stock based compensation, net                                        |   |   | - |   |   |   | - |   |   |   | 11 |   |   |   | - |   |   |   | - |   |   |   | 11 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Comprehensive loss:                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net loss for the period                                  |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,232 | ) |   |   | - |   |   |   | (1,232 | ) |
|      Net unrealized gain on available-                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        for-sale securities                          |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 422 |   |   |   | 422 |   |
|           Total comprehensive loss   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (810 | ) |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net proceeds from issuance                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       of common stock                                    |   |   | 202,565 |   |   |   | 1 |   |   |   | 1,048 |   |   |   | - |   |   |   | - |   |   |   | 1,049 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2009                                                           |   |   | 2,071,070 |   |   | $ | 20 |   |   | $ | 18,970 |   |   | $ | (9,716 | ) |   | $ | 207 |   |   | $ | 9,481 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at January 1, 2010                                                             |   |   | 2,071,070 |   |   | $ | 20 |   |   | $ | 18,970 |   |   | $ | (9,716 | ) |   | $ | 207 |   |   | $ | 9,481 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Stock based compensation, net                                        |   |   | - |   |   |   | - |   |   |   | 13 |   |   |   | - |   |   |   | - |   |   |   | 13 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Comprehensive income:                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Net income for the period                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 488 |   |   |   | - |   |   |   | 488 |   |
|      Net unrealized gain on available-                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|        for-sale securities, net of tax              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 16 |   |   |   | 16 |   |
|           Total comprehensive income |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 504 |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Net proceeds from issuance                                                 |   |   | 198,000 |   |   |   | 2 |   |   |   | 778 |   |   |   | - |   |   |   | - |   |   |   | 780 |   |
|       of common stock                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2010                                                           |   |   | 2,269,070 |   |   | $ | 22 |   |   | $ | 19,761 |   |   | $ | (9,228 | ) |   | $ | 223 |   |   | $ | 10,778 |   |

----

| FOR THE TWELVE MONTHS ENDED DECEMBER 31,                                                          |   |
|---------------------------------------------------------------------------------------------------|--------|
| (Dollars in thousands)                                                                            |   |
|                                                                                              |   |   |   |   |   |   |
|                                                                                              |   | 2010 |   |   | 2009 |   |
|                                                                                              |   |   |   |   |   |   |
| Cash flows from operating activities:                                                             |   |   |   |   |   |   |
|   Net income (loss) for period                                                          |   | $ | 488 |   |   | $ | (1,232 | ) |
|   Adjustments to reconcile net income (loss) to net cash                                |   |   |   |   |   |   |   |   |
|     provided by operating activities:                                         |   |   |   |   |   |   |   |   |
|     Provision for loan losses                                                 |   |   | 614 |   |   |   | 1,175 |   |
|     Depreciation expense                                                      |   |   | 243 |   |   |   | 255 |   |
|     Amortization (accretion) of deferred fees, discounts and premiums, net    |   |   | 106 |   |   |   | (20 | ) |
|     Mortgage loans originated for sale                                        |   |   | (14,169 | ) |   |   | (18,467 | ) |
|     Proceeds from sale of mortgage loans held for sale                        |   |   | 13,963 |   |   |   | 18,703 |   |
|     Net gain on sales of mortgage loans                                       |   |   | (194 | ) |   |   | (236 | ) |
|     Stock compensation expense                                                |   |   | 13 |   |   |   | 11 |   |
|     Net gain on sales of investment securities                                |   |   | (467 | ) |   |   | (457 | ) |
|     Loss on impairment of foreclosed asset                                    |   |   | 30 |   |   |   | 500 |   |
|     Changes in assets and liabilities:                                        |   |   |   |   |   |   |   |   |
|       Increase (decrease) in other assets                           |   |   | 57 |   |   |   | (919 | ) |
|       (Decrease) increase in accrued expenses and other liabilities |   |   | (545 | ) |   |   | 800 |   |
|         Net cash used in operating activities             |   |   | 139 |   |   |   | 113 |   |
| Cash flows from investing activities:                                                             |   |   |   |   |   |   |   |   |
|   Maturity of certificates of deposit at other financial institutions                   |   |   | 1,575 |   |   |   | 7,348 |   |
|   Purchase of certificates of deposit at other financial institutions                   |   |   | - |   |   |   | (4,405 | ) |
|   Purchase of available-for-sale securities                                             |   |   | (5,934 | ) |   |   | (8,306 | ) |
|   Purchase of held-to-maturity securities                                               |   |   | - |   |   |   | (16,044 | ) |
|   Proceeds from sales of available-for-sale securities                                  |   |   | 7,837 |   |   |   | 13,653 |   |
|   Proceeds from principal payments and maturities of securities                         |   |   | 7,226 |   |   |   | 10,813 |   |
|   Net disbursements for loan originations                                               |   |   | (11,087 | ) |   |   | (12,334 | ) |
|   Purchases of loans                                                                    |   |   | (5,239 | ) |   |   | - |   |
|   Redemption/ (purchase) of Federal Home Loan Bank stock                                |   |   | 15 |   |   |   | (45 | ) |
|   Purchase of Federal Reserve Bank stock                                                |   |   | (84 | ) |   |   | (9 | ) |
|   Leasehold improvements and acquisitions of capital assets, net of disposals           |   |   | (80 | ) |   |   | (146 | ) |
|         Net cash used in investing activities             |   |   | (5,772 | ) |   |   | (9,475 | ) |
| Cash flows from financing activities:                                                             |   |   |   |   |   |   |   |   |
|   Net increase in deposits                                                              |   |   | 2,865 |   |   |   | 10,590 |   |
|   Proceeds of advances from line of credit & FHLB                                   |   |   | 1,226 |   |   |   | 1,000 |   |
|   Repayment of advances                                                                 |   |   | (985 | ) |   |   | (951 | ) |
|   Net proceeds from common stock issuance                                               |   |   | 780 |   |   |   | 1,049 |   |
|         Net cash provided by financing activities         |   |   | 3,887 |   |   |   | 11,688 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Net decrease in cash and cash equivalents                                                         |   |   | (1,746 | ) |   |   | 2,326 |   |
| Cash and cash equivalents at beginning of period                                                  |   |   | 14,785 |   |   |   | 12,459 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of period                                                        |   | $ | 13,039 |   |   | $ | 14,785 |   |
|                                                                                              |   |   |   |   |   |   |   |   |
| Supplemental cash flow information                                                                |   |   |   |   |   |   |   |   |
|   Interest paid                                                                         |   | $ | 2,906 |   |   | $ | 2,622 |   |
|   Income taxes paid                                                                     |   | $ | 20 |   |   | $ | - |   |
|   Transfer of loans to REO                                                              |   | $ | 206 |   |   | $ | 649 |   |

----

----

----

----

|                                                                          |   | Twelve Months Ended |      |
|-------------------------------------------------------------------------------|--------|---------------------|-----------|
|                                                                          |   | December 31,        |      |
|                                                                          |   | 2010                |      |   | 2009 |   |
|  (in thousands, except per share data)                                   |   |                |      |   |   |   |
| Net income (loss) attributable to Common Shareholders                         |   | $                   | 488       |   |   | $ | (1,232 | ) |
| Average number of Common Shares Outstanding-basic                             |   |                | 2,079,207 |   |   |   | 1,933,367 |   |
|                                                                          |   |                |      |   |   |   |   |   |
| Average number of common shares outstanding-diluted                           |   |                | 2,079,207 |   |   |   | 1,933,367 |   |
| Income (loss) per common share attributable                                   |   |                |      |   |   |   |   |   |
|          to common shareholders: |   |                |      |   |   |   |   |   |
|   Basic                                                             |   | $                   | 0.23      |   |   | $ | (0.64 | ) |
|   Diluted                                                           |   |                | 0.23      |   |   |   | (0.64 | ) |

----

----

----

|                                   |   | December 31, 2010 |   |
|----------------------------------------|--------|-------------------|--------|
|                                   |   |              |   |   | (in thousands) |   |   |   |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |
|                                   |   | Amortized         |   |   | Gross Unrealized |   |   | Fair |   |
|                                   |   | Cost              |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities-residential |   | $                 | 17,838 |   |   | $ | 290 |   |   | $ | -- |   |   | $ | 18,128 |   |
| U.S. Government Agencies               |   |              | 600    |   |   |   | 14 |   |   |   | -- |   |   |   | 614 |   |
| Trust Preferred Securities             |   |              | 1,300  |   |   |   | 78 |   |   |   | -- |   |   |   | 1,378 |   |
| Total                                  |   | $                 | 19,738 |   |   | $ | 382 |   |   | $ | -- |   |   | $ | 20,120 |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | December 31, 2009 |   |
|                                   |   |              |   |   |   | (in thousands) |   |   |   |   |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                   |   | Amortized         |   |   | Gross Unrealized |   |   | Fair |   |
|                                   |   | Cost              |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Mortgage-backed securities-residential |   | $                 | 25,650 |   |   | $ | 398 |   |   | $ | (202 | ) |   | $ | 25,846 |   |
| U.S. Government Agencies               |   |              | 1,600  |   |   |   | 26 |   |   |   | -- |   |   |   | 1,626 |   |
| Trust Preferred Securities             |   |              | 1,300  |   |   |   | 4 |   |   |   | (20 | ) |   |   | 1,284 |   |
| Total                                  |   | $                 | 28,550 |   |   | $ | 428 |   |   | $ | (222 | ) |   | $ | 28,756 |   |

|                                                                    |   | December 31, 2010 |   |
|-------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                    |   | (in thousands)    |   |
|                                                                    |   |              |   |   |   |   |
|                                                                    |   | Amortized         |   |   | Fair |   |
|                                                                    |   | Cost              |   |   | Value |   |
| Available-for-Sale:                                                     |   |              |   |   |   |   |
| Mortgaged-backed securities                                             |   | $                 | 17,838 |   |   | $ | 18,128 |   |
| U.S. Government Agencies and Trust Preferred Securities                 |   |              |   |   |   |   |   |   |
|       Due less than one year              |   |              | 600    |   |   |   | 614 |   |
|       One year to less than three years   |   |              | --     |   |   |   | -- |   |
|       Three years to less than five years |   |              | --     |   |   |   | -- |   |
|       Five years to ten years             |   |              | --     |   |   |   | -- |   |
|       More than ten years                 |   |              | 1,300  |   |   |   | 1,378 |   |
| Total                                                                   |   | $                 | 19,738 |   |   | $ | 20,120 |   |

----

|                                                     |   |                |   |  December 31, 2009 |              |   |   |   |   |   |       |   |
|----------------------------------------------------------|--------|---------------------|--------|-------------------------|-------------------|--------|--------|--------|--------|--------|------------|--------|
|                                                     |   |                |   |                    |              |   |   |   |   |   |       |   |   |   |   |   |   |   |
|                                                     |   | Less Than 12 Months |   |                    | 12 Months or More |   |   | Total  |   |   |       |   |
|                                                     |   | Fair                |   |                    | Unrealized        |   |   | Fair   |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                                     |   | Value               |   |                    | Loss              |   |   | Value  |   |   | Loss       |   |   | Value |   |   | Loss |   |
|                                                     |   | (In thousands)      |   |                    |              |   |   |   |   |
|                                                     |   |                |   |                    |              |   |   |   |   |   |       |   |   |   |   |   |   |   |
| Mortgage-backed securities                               |   | $                   | 5,294  |                    |              | $      | 30     |   |   | $      | 6,044      |   |   | $ | 172 |   |   | $ | 11,338 |   |   | $ | 202 |   |
| U.S. Government Agencies                                 |   |                | -      |                    |              |   | -      |   |   |   | -          |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Trust Preferred Securities                               |   |                | 347    |                    |              |   | 3      |   |   |   | 433        |   |   |   | 17 |   |   |   | 780 |   |   |   | 20 |   |
|      Total temporarily impaired |   | $                   | 5,641  |                    |              | $      | 33     |   |   | $      | 6,477      |   |   | $ | 189 |   |   | $ | 12,118 |   |   | $ | 222 |   |

|         |   | 2010   |   |   | 2009           |   |
|--------------|--------|--------|--------|--------|----------------|--------|
|         |   |   |   |   | (In thousands) |   |
|         |   |   |   |   |           |   |
| Proceeds     |   | $      | 7,837  |   |           | $      | 13,653 |   |
| Gross gains  |   |   | 467    |   |           |   | 457 |   |
| Gross losses |   |   | -      |   |           |   | - |   |

----

|                                            |   | December 31,   |    |
|-------------------------------------------------|--------|----------------|---------|
|                                            |   | 2010           |    |   | 2009 |   |
|                                            |   | (In thousands) |    |
| Real estate loans:                              |   |           |    |   |   |   |
| One-to four family                              |   | $              | 28,037  |   |   | $ | 26,831 |   |
| Commercial                                      |   |           |    |   |   |   |   |   |
| Owner Occupied                                  |   |           | 20,039  |   |   |   | 22,494 |   |
| Non Owner Occupied                              |   |           | 15,552  |   |   |   | 16,767 |   |
| Multi-family                                    |   |           | 11,634  |   |   |   | 9,416 |   |
| Construction or development                     |   |           | 2,566   |   |   |   | 2,798 |   |
| Home equity                                     |   |           |    |   |   |   |   |   |
| Open Ended/Revolving                            |   |           | 7,468   |   |   |   | 6,253 |   |
| Closed Ended                                    |   |           | 1,620   |   |   |   | 1,711 |   |
|     Total real estate loans |   |           | 86,916  |   |   |   | 86,270 |   |
|                                            |   |           |    |   |   |   |   |   |
| Other loans:                                    |   |           |    |   |   |   |   |   |
| Commercial business                             |   |           |    |   |   |   |   |   |
| Taxi Medallion                                  |   |           | 9,679   |   |   |   | 969 |   |
| USDA Guaranteed                                 |   |           | 5,110   |   |   |   | - |   |
| Commercial Lines of Credit and Term Loans       |   |           | 20,571  |   |   |   | 19,111 |   |
| Consumer                                        |   |           | 407     |   |   |   | 548 |   |
|    Total other loans             |   |           | 35,767  |   |   |   | 20,628 |   |
|                                            |   |           |    |   |   |   |   |   |
| Total loans                                     |   |           | 122,683 |   |   |   | 106,898 |   |
|                                            |   |           |    |   |   |   |   |   |
| Deferred loan costs net                         |   |           | 542     |   |   |   | 585 |   |
| Allowance for loan losses                       |   |           | (2,017  | ) |   |   | (1,824 | ) |
|                                            |   |           |    |   |   |   |   |   |
| Total loans receivable, net                     |   | $              | 121,208 |   |   | $ | 105,659 |   |

----

|                                            |   | 1-4 Family Residential Real Estate |   |   | Commercial Real Estate |   |   | Multifamily Real Estate |   |   | Construction or Development |   |   | Home Equity |   |   | Commercial Business |   |   | Consumer |   |   | Unallocated |   |   | Total  |   |
|-------------------------------------------------|--------|------------------------------------|--------|--------|------------------------|--------|--------|-------------------------|--------|--------|-----------------------------|--------|--------|-------------|--------|--------|---------------------|--------|--------|----------|--------|--------|-------------|--------|--------|--------|--------|
|                                            |   | (In thousands)                     |   |
| Allowance for loan losses:                      |   |                               |   |   |                   |   |   |                    |   |   |                        |   |   |        |   |   |                |   |   |     |   |   |        |   |   |
| Ending allowance balance attributable to loans: |   |                               |   |   |                   |   |   |                    |   |   |                        |   |   |        |   |   |                |   |   |     |   |   |
| Individually evaluated for impairment           |   |                               | -      |   |                   |   | -      |                    |   |   | -                           |   |   |        | -      |   |                |   | 3      |     |   |   | 42          |   |   |   | -      |   |   |   | - |   |   |   | 45 |   |
| Collectively evaluated for impairment           |   |                               | 115    |   |                   |   | 591    |                    |   |   | 237                         |   |   |        | 36     |   |                |   | 140    |     |   |   | 591         |   |   |   | 5      |   |   |   | 257 |   |   |   | 1,972 |   |
|                                            |   |                               |   |   |                   |   |   |                    |   |   |                        |   |   |        |   |   |                |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Acquired with deteriorated credit quality       |   |                               | -      |   |                   |   | -      |                    |   |   | -                           |   |   |        | -      |   |                |   | -      |     |   |   | -           |   |   |   | -      |   |   |   | - |   |   |   | - |   |
|                                            |   |                               |   |   |                   |   |   |                    |   |   |                        |   |   |        |   |   |                |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total allowance balance                         |   | $                                  | 115    |   |                   | $      | 591    |                    |   | $      | 237                         |   |   | $           | 36     |   |                | $      | 143    |     |   | $      | 633         |   |   | $      | 5      |   |   | $ | 257 |   |   | $ | 2,017 |   |
|                                            |   |                               |   |   |                   |   |   |                    |   |   |                        |   |   |        |   |   |                |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans:                                          |   |                               |   |   |                   |   |   |                    |   |   |                        |   |   |        |   |   |                |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans individually evaluated for impairment     |   |                               | -      |   |                   |   | 1,826  |                    |   |   | 1,068                       |   |   |        | 775    |   |                |   | 55     |     |   |   | 732         |   |   |   | -      |   |   |   | - |   |   |   | 4,456 |   |
|                                            |   |                               |   |   |                   |   |   |                    |   |   |                        |   |   |        |   |   |                |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans collectively evaluated for impairment     |   |                               | 28,037 |   |                   |   | 33,765 |                    |   |   | 10,566                      |   |   |        | 1,791  |   |                |   | 9,033  |     |   |   | 34,628      |   |   |   | 407    |   |   |   | - |   |   |   | 118,227 |   |
|                                            |   |                               |   |   |                   |   |   |                    |   |   |                        |   |   |        |   |   |                |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans acquired with deteriorated credit quality |   |                               | -      |   |                   |   | -      |                    |   |   | -                           |   |   |        | -      |   |                |   | -      |     |   |   | -           |   |   |   | -      |   |   |   | - |   |   |   | - |   |
|                                            |   |                               |   |   |                   |   |   |                    |   |   |                        |   |   |        |   |   |                |   |   |     |   |   |        |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total ending loans balance                      |   | $                                  | 28,037 |   |                   | $      | 35,591 |                    |   | $      | 11,634                      |   |   | $           | 2,566  |   |                | $      | 9,088  |     |   | $      | 35,360      |   |   | $      | 407    |   |   | $ | - |   |   |   | 122,683 |   |

|                                                                                                                                 |   | 2010                 |   |   | 2009   |   |
|--------------------------------------------------------------------------------------------------------------------------------------|--------|----------------------|--------|--------|--------|--------|
|                        |   |  (In thousands) |   |
|                                                                                                                                 |   |                 |   |   |   |   |
| Year-end loans with no allocated allowance for loan losses                                                                           |   | $                    | 4,263  |   |   | $      | 3,065 |   |
| Year-end loans with allocated allowance for loan losses                                                                              |   |                 | 193    |   |   |   | 1,534 |   |
|                                                                                                                                 |   |                 |   |   |   |   |   |   |
| Total                                                                                                                                |   | $                    | 4,456  |   |   | $      | 4,599 |   |
|                                                                                                                                 |   |                 |   |   |   |   |   |   |
| Amount of the allowance for loan losses allocated                                                                                    |   | $                    | 45     |   |   | $      | 71 |   |

|                                               |   |   | 2010    |   |   |   | 2009  |   |   |   | 2008 |   |
|----------------------------------------------------|--------|--------|---------|--------|--------|--------|-------|--------|--------|--------|------|--------|
| Average of individually impaired loans during year |   | $      | 4,799   |   |   |   | 3,507 |   |   | $      | 187  |   |
| Interest income recognized during impairment       |   |   | 2  |   |   |   | 2     |   |   |   | -    |   |
| Cash-basis interest income recognized              |   |   | -  |   |   |   | -     |   |   |   | -    |   |

----

|                                            |   | Unpaid Principal Balance |   |   | Recorded Investment |   |   | Allowance For Loan Losses Allocated |   |
|-------------------------------------------------|--------|--------------------------|--------|--------|---------------------|--------|--------|-------------------------------------|--------|
|                                            |   | (In thousands)           |   |
| With no related allowance recorded:             |   |                     |   |   |                |   |   |                                |   |
| Real estate loans:                              |   |                     |   |   |                |   |   |                                |   |
| One-to four family                              |   | $                        | -      |   |                | $      | -      |                                |   | $ | - |   |
| Commercial                                      |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Owner Occupied                                  |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| Non Owner Occupied                              |   |                     | 1,826  |   |                |   | 1,826  |                                |   |   | - |   |
| Multi-family                                    |   |                     | 1,068  |   |                |   | 1,068  |                                |   |   | - |   |
| Construction or development                     |   |                     | 816    |   |                |   | 775    |                                |   |   | - |   |
| Home equity                                     |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Open Ended/Revolving                            |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| Closed Ended                                    |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
|     Total real estate loans |   |                     | 3,710  |   |                |   | 3,669  |                                |   |   | - |   |
| Other loans:                                    |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Commercial business                             |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Taxi Medallion                                  |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| USDA Guaranteed                                 |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| All Other                                       |   |                     | 668    |   |                |   | 594    |                                |   |   | - |   |
| Consumer                                        |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
|    Total other loans             |   |                     | 668    |   |                |   | 594    |                                |   |   | - |   |
|                                            |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Total loans                                     |   | $                        | 4,378  |   |                | $      | 4,263  |                                |   | $ | - |   |
|                                            |   |                     |   |   |                |   |   |                                |   |   |   |   |
| With an allowance recorded:                     |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Real estate loans:                              |   |                     |   |   |                |   |   |                                |   |   |   |   |
| One-to four family                              |   | $                        | -      |   |                | $      | -      |                                |   | $ | - |   |
| Commercial                                      |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Owner Occupied                                  |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| Non Owner Occupied                              |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| Multi-family                                    |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| Construction or development                     |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| Home equity                                     |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Open Ended/Revolving                            |   |                     | 75     |   |                |   | 55     |                                |   |   | 3 |   |
| Closed Ended                                    |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
|     Total real estate loans |   |                     | 75     |   |                |   | 55     |                                |   |   | 3 |   |
| Other loans:                                    |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Commercial business                             |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Taxi Medallion                                  |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| USDA Guaranteed                                 |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
| All Other                                       |   |                     | 138    |   |                |   | 138    |                                |   |   | 42 |   |
| Consumer                                        |   |                     | -      |   |                |   | -      |                                |   |   | - |   |
|    Total other loans             |   |                     | 138    |   |                |   | 138    |                                |   |   | 42 |   |
|                                            |   |                     |   |   |                |   |   |                                |   |   |   |   |
| Total loans                                     |   | $                        | 213    |   |                | $      | 193    |                                |   | $ | 45 |   |

----

|                                                                                |   | 2010           |   |   | 2009   |   |
|-------------------------------------------------------------------------------------|--------|----------------|--------|--------|--------|--------|
|                                                                                |   | (In thousands) |   |
|  Nonaccrual loans and loans past due 90 days still on accrual were as follows: |   |           |   |   |   |   |
|  Loans past due over 90 days still on accrual                   |   | $              | -      |   |   | $      | - |   |
|  Nonaccrual loans                                                         |   |           | 2,509  |   |   |   | 3,065 |   |

|                                            |   | 30 - 59 Days Past Due |   |   | 60 - 89 Days Past Due |   |   | Loans Past Due Over 90 Days Still Accruing |   |   | Non Accrual |   |   | Total Past Due |   |   | Loans Not Past Due |   |   | Total  |   |
|-------------------------------------------------|--------|-----------------------|--------|--------|-----------------------|--------|--------|--------------------------------------------|--------|--------|-------------|--------|--------|----------------|--------|--------|--------------------|--------|--------|--------|--------|
|                                            |   | (In thousands)        |   |
| Real estate loans:                              |   |                  |   |   |                  |   |   |                                       |   |   |        |   |   |           |   |   |               |   |   |   |   |
| One-to four family                              |   | $                     | 584    |   |                  | $      | -      |                                       |   | $      | -           |   |   | $              | -      |   |               | $      | 584    |   |   | $ | 27,453 |   |   | $ | 28,037 |   |
| Commercial                                      |   |                  |   |   |                  |   |   |                                       |   |   |        |   |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Owner Occupied                                  |   |                  | 817    |   |                  |   | -      |                                       |   |   | -           |   |   |           | -      |   |               |   | 817    |   |   |   | 19,222 |   |   |   | 20,039 |   |
| Non Owner Occupied                              |   |                  | -      |   |                  |   | -      |                                       |   |   | -           |   |   |           | 1,174  |   |               |   | 1,174  |   |   |   | 14,378 |   |   |   | 15,552 |   |
| Multi-family                                    |   |                  | -      |   |                  |   | -      |                                       |   |   | -           |   |   |           | -      |   |               |   | -      |   |   |   | 11,634 |   |   |   | 11,634 |   |
| Construction or development                     |   |                  | -      |   |                  |   | -      |                                       |   |   | -           |   |   |           | 775    |   |               |   | 775    |   |   |   | 1,791 |   |   |   | 2,566 |   |
| Home equity                                     |   |                  |   |   |                  |   |   |                                       |   |   |        |   |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Open Ended/Revolving                            |   |                  | -      |   |                  |   | -      |                                       |   |   | -           |   |   |           | 55     |   |               |   | 55     |   |   |   | 7,413 |   |   |   | 7,468 |   |
| Closed Ended                                    |   |                  | 278    |   |                  |   | -      |                                       |   |   | -           |   |   |           | -      |   |               |   | 278    |   |   |   | 1,342 |   |   |   | 1,620 |   |
|     Total real estate loans |   |                  | 1,679  |   |                  |   | -      |                                       |   |   | -           |   |   |           | 2,004  |   |               |   | 3,683  |   |   |   | 83,233 |   |   |   | 86,916 |   |
| Other loans:                                    |   |                  |   |   |                  |   |   |                                       |   |   |        |   |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Commercial business                             |   |                  |   |   |                  |   |   |                                       |   |   |        |   |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Taxi Medallion                                  |   |                  | -      |   |                  |   | -      |                                       |   |   | -           |   |   |           | -      |   |               |   | -      |   |   |   | 9,679 |   |   |   | 9,679 |   |
| USDA Guaranteed                                 |   |                  | -      |   |                  |   | -      |                                       |   |   | -           |   |   |           | -      |   |               |   | -      |   |   |   | 5,110 |   |   |   | 5,110 |   |
| All Other                                       |   |                  | 276    |   |                  |   | -      |                                       |   |   | -           |   |   |           | 505    |   |               |   | 781    |   |   |   | 19,790 |   |   |   | 20,571 |   |
| Consumer                                        |   |                  | -      |   |                  |   | -      |                                       |   |   | -           |   |   |           | -      |   |               |   | -      |   |   |   | 407 |   |   |   | 407 |   |
|    Total other loans             |   |                  | 276    |   |                  |   | -      |                                       |   |   | -           |   |   |           | 505    |   |               |   | 781    |   |   |   | 34,986 |   |   |   | 35,767 |   |
|                                            |   |                  |   |   |                  |   |   |                                       |   |   |        |   |   |           |   |   |               |   |   |   |   |   |   |   |   |   |   |   |
| Total loans                                     |   | $                     | 1,955  |   |                  | $      | -      |                                       |   | $      | -           |   |   | $              | 2,509  |   |               | $      | 4,464  |   |   | $ | 118,219 |   |   | $ | 122,683 |   |

|       (In thousands) |   |   |   |
|----------------------------------------------------|--------|--------|--------|
|  Beginning balance at December 31, 2009       |   | $      | 3,560  |   |
|  New loans                                    |   |   | 1,032  |   |
|  Repayment                                    |   |   | (564   | ) |
| Ending balance at December 31, 2010                |   | $      | 4,028  |   |

----

|                                            |   | Not Classified |    |   | Special Mention |   |   | Sub-standard |   |   | Doubtful |   |   | Loss   |   |   | Total Loans |   |
|-------------------------------------------------|--------|----------------|---------|--------|-----------------|--------|--------|--------------|--------|--------|----------|--------|--------|--------|--------|--------|-------------|--------|
| Real estate loans:                              |   |           |    |   |            |   |   |         |   |   |     |   |   |   |   |   |        |   |
| One-to four family                              |   | $              | 27,572  |   |            | $      | -      |         |   | $      | 465      |   |   | $      | -      |   |        | $      | - |   |   | $ | 28,037 |   |
| Commercial                                      |   |           |    |   |            |   |   |         |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |
| Owner Occupied                                  |   |           | 15,039  |   |            |   | 3,661  |         |   |   | 1,339    |   |   |   | -      |   |        |   | - |   |   |   | 20,039 |   |
| Non Owner Occupied                              |   |           | 13,726  |   |            |   | 652    |         |   |   | 1,174    |   |   |   | -      |   |        |   | - |   |   |   | 15,552 |   |
| Multi-family                                    |   |           | 10,566  |   |            |   | -      |         |   |   | 1,068    |   |   |   | -      |   |        |   | - |   |   |   | 11,634 |   |
| Construction or development                     |   |           | 1,791   |   |            |   | -      |         |   |   | 775      |   |   |   | -      |   |        |   | - |   |   |   | 2,566 |   |
| Home equity                                     |   |           |    |   |            |   |   |         |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |
| Open Ended/Revolving                            |   |           | 6,862   |   |            |   | 551    |         |   |   | 55       |   |   |   | -      |   |        |   | - |   |   |   | 7,468 |   |
| Closed Ended                                    |   |           | 1,463   |   |            |   | -      |         |   |   | 157      |   |   |   | -      |   |        |   | - |   |   |   | 1,620 |   |
|     Total real estate loans |   |           | 77,019  |   |            |   | 4,864  |         |   |   | 5,033    |   |   |   | -      |   |        |   | - |   |   |   | 86,916 |   |
| Other loans:                                    |   |           |    |   |            |   |   |         |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |
| Commercial business                             |   |           |    |   |            |   |   |         |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |
| Taxi Medallion                                  |   |           | 9,679   |   |            |   | -      |         |   |   | -        |   |   |   | -      |   |        |   | - |   |   |   | 9,679 |   |
| USDA Guaranteed                                 |   |           | 5,110   |   |            |   | -      |         |   |   | -        |   |   |   | -      |   |        |   | - |   |   |   | 5,110 |   |
| All Other                                       |   |           | 18,969  |   |            |   | 382    |         |   |   | 1,220    |   |   |   | -      |   |        |   | - |   |   |   | 20,571 |   |
| Consumer                                        |   |           | 407     |   |            |   | -      |         |   |   | -        |   |   |   | -      |   |        |   | - |   |   |   | 407 |   |
|    Total other loans             |   |           | 34,165  |   |            |   | 382    |         |   |   | 1,220    |   |   |   | -      |   |        |   | - |   |   |   | 35,767 |   |
|                                            |   |           |    |   |            |   |   |         |   |   |     |   |   |   |   |   |        |   |   |   |   |   |   |   |
| Total loans                                     |   | $              | 111,184 |   |            | $      | 5,246  |         |   | $      | 6,253    |   |   | $      | -      |   |        | $      | - |   |   | $ | 122,683 |   |

----

|                         |   | December 31,   |   |
|------------------------------|--------|----------------|--------|
|                         |   | 2010           |   |   | 2009 |   |
|                         |   | (In thousands) |   |
|                         |   |           |   |   |   |   |
| Balance at beginning of year |   | $              | 1,824  |   |   | $ | 862 |   |
| Provision for losses         |   |           | 614    |   |   |   | 1,175 |   |
| Charge-offs                  |   |           | (423   | ) |   |   | (215 | ) |
| Recoveries                   |   |           | 2      |   |   |   | 2 |   |
| Balance at end of year       |   | $              | 2,017  |   |   | $ | 1,824 |   |

|                                                            |   | December 31,   |   |
|-----------------------------------------------------------------|--------|----------------|--------|
|                                                            |   | 2010           |   |   | 2009 |   |
|                                                            |   | (In thousands) |   |
|                                                            |   |           |   |   |   |   |
| Furniture, fixtures, and equipment                              |   | $              | 951    |   |   | $ | 971 |   |
| Leasehold Improvements                                          |   |           | 884    |   |   |   | 885 |   |
|                                                            |   |           | 1,835  |   |   |   | 1,856 |   |
| Less: accumulated depreciation and amortization                 |   |           | (1,350 | ) |   |   | (1,208 | ) |
|      Total premises and equipment, net |   | $              | 485    |   |   | $ | 648 |   |

----

|                          |   | December 31,   |    |
|-------------------------------|--------|----------------|---------|
|                          |   | 2010           |    |   | 2009 |   |
|                          |   | (in thousands) |    |
| Demand deposit accounts       |   | $              | 17,896  |   |   | $ | 14,007 |   |
| NOW accounts                  |   |           | 7,287   |   |   |   | 5,292 |   |
| Money market accounts         |   |           | 34,682  |   |   |   | 37,578 |   |
| Regular savings accounts      |   |           | 9,426   |   |   |   | 8,995 |   |
| Certificates of Deposit       |   |           | 68,926  |   |   |   | 69,480 |   |
|     Total |   | $              | 138,217 |   |   | $ | 135,352 |   |

|                                                        |   | Account        |   |
|-------------------------------------------------------------|--------|----------------|--------|
|                                                        |   | Balances       |   |
|                                                        |   | (In thousands) |   |
|                                                        |   |           |   |
| Under one year                                              |   | $              | 41,555 |   |
| One year to under two years                                 |   |           | 17,998 |   |
| Two years to under three years                              |   |           | 4,439  |   |
| Three years to under four years                             |   |           | 1,775  |   |
| Four years to under five years                              |   |           | 3,160  |   |
|      Total certificates of deposit |   | $              | 68,926 |   |

|                                      |   | 2010 |   |   | 2009   |   |
|-------------------------------------------|--------|------|--------|--------|--------|--------|
| Fixed rates with an average rate of 3.09% |   | $    | 7,523  |   |   | $      | 8,508 |   |

----

| 2011 |   | $      | 1,025 |   |
|------|--------|--------|-------|--------|
| 2012 |   |   | 1,060 |   |
| 2013 |   |   | 5,438 |   |
| 2014 |   |   | 0     |   |
| 2015 |   |   | 0     |   |

|                                                                    |   | December 31,   |   |
|-------------------------------------------------------------------------|--------|----------------|--------|
|                                                                    |   | 2010           |   |   | 2009 |   |   | 2008 |   |
|                                                                    |   | (in thousands) |   |
| Current:                                                                |   |           |   |   |   |   |   |   |   |
|   Federal expense (benefit)                                   |   | $              | 21     |   |   | $ | - |   |   | $ | - |   |
|   State and local expense (benefit)                           |   |           | 33     |   |   |   | - |   |   |   | - |   |
|            Total |   |           | 54     |   |   |   | - |   |   |   | - |   |
|                                                                    |   |           |   |   |   |   |   |   |   |   |   |   |
| Deferred:                                                               |   |           |   |   |   |   |   |   |   |   |   |   |
|   Federal expense (benefit)                                   |   | $              | 94     |   |   |   | (130 | ) |   |   | (585 | ) |
|   State and local expense (benefit)                           |   |           | 11     |   |   |   | (121 | ) |   |   | (168 | ) |
|            Total |   |           | 105    |   |   |   | (251 | ) |   |   | (753 | ) |
|                                                                    |   |           |   |   |   |   |   |   |   |   |   |   |
| Valuation allowance                                                     |   |           | (289   | ) |   |   | 251 |   |   |   | 753 |   |
|     Tax Expense                                     |   |           | (130   | ) |   |   | - |   |   |   | - |   |

----

|                                                                                   |   | December 31,   |   |
|----------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                   |   | 2010           |   |   | 2009 |   |   | 2008 |   |
|                                                                                   |   | (in thousands) |   |
|                                                                                   |   |           |   |   |   |   |   |   |   |
|   Federal expense (benefit) at statutory rate                                |   | $              | 121    |   |   | $ | (419 | ) |   | $ | (657 | ) |
|   State and local income taxes, net of                                       |   |           |   |   |   |   |   |   |   |   |   |   |
|           federal income tax benefit |   |           | 39     |   |   |   | (80 | ) |   |   | (106 | ) |
|   Expiration of charitable contribution                                      |   |           |   |   |   |   |   |   |   |   |   |   |
|          carryforward                     |   |           | 2      |   |   |   | 85 |   |   |   | - |   |
|   Other                                                                      |   |           | (3     | ) |   |   | 163 |   |   |   | 10 |   |
|   Tax benefit before valuation allowance                                     |   |           | 159    |   |   |   | (251 | ) |   |   | (753 | ) |
|                                                                                   |   |           |   |   |   |   |   |   |   |   |   |   |
|   Valuation Allowance                                                        |   |           | (289   | ) |   |   | 251 |   |   |   | 753 |   |
|          Income tax benefit               |   |           | (130   | ) |   |   | - |   |   |   | - |   |

|                                             |   | December 31,   |   |
|--------------------------------------------------|--------|----------------|--------|
|                                             |   | 2010           |   |   | 2009 |   |
|                                             |   | (in thousands) |   |
|                                             |   |           |   |   |   |   |
| Deferred Tax Assets:                             |   |           |   |   |   |   |
|   Net operating loss carryforwards     |   | $              | 2,013  |   |   | $ | 2,435 |   |
|   Stock Option Compensation            |   |           | 29     |   |   |   | 29 |   |
|   Charitable contribution carryforward |   |           | 12     |   |   |   | 11 |   |
|   Depreciation                         |   |           | 99     |   |   |   | 72 |   |
|   Loss on investment CD                |   |           | 306    |   |   |   | 303 |   |
|   Reserve for loan losses              |   |           | 839    |   |   |   | 751 |   |
|   Non-Accrual loan interest            |   |           | 199    |   |   |   | 64 |   |
|  Other deferred tax assets                  |   |           | 55     |   |   |   | 22 |   |
|                                             |   |           | 3,552  |   |   |   | 3,687 |   |
| Less: Valuation allowance                        |   |           | (2,966 | ) |   |   | (3,251 | ) |
| Net deferred tax assets                          |   |           | 586    |   |   |   | 436 |   |
|                                             |   |           |   |   |   |   |   |   |
| Deferred tax liabilities:                        |   |           |   |   |   |   |   |   |
|   Accrual to cash adjustment           |   |           | 72     |   |   |   | 107 |   |
|   Intangible asset amortization        |   |           | 105    |   |   |   | 88 |   |
|   Deferred loan fees                   |   |           | 224    |   |   |   | 241 |   |
| Unrealized Gain/(loss) on AFS securities         |   |           | 159    |   |   |   | - |   |
| Deferred tax liabilities                         |   |           | 560    |   |   |   | 436 |   |
|                                             |   |           |   |   |   |   |   |   |
| Net deferred tax asset (liability)               |   |           | 26     |   |   |   | - |   |

----

|   |   | FEDERAL |   |   | NEW YORK STATE |   | NEW YORK CITY |   | YEAR(S) of Expiration |   |
|--------|--------|---------|--------|--------|----------------|--------|---------------|--------|-----------------------|--------|
| 2004   |   |    | 372    |   |           |   | 378           |   |                  |   |   | 2024 |   |
| 2005   |   |    | 1,680  |   |           |   | 1,675         |   |                  |   |   | 2025 |   |
| 2006   |   |    | 1,173  |   |           |   | 1,211         |   |                  |   |   | 2026 |   |
| 2007   |   |    | 704    |   |           |   | 751           |   |                  |   |   | 2027 |   |
| 2008   |   |    | 894    |   |           |   | 800           |   |                  |   |   | 2028 |   |
| 2009   |   |    | 258    |   |           |   | 217           |   |                  |   |   | 2029 |   |
|   |   |    | 5,081  |   |           |   | 5,032         |   |                  |   |   |   |   |

|       |   | (In thousands) |   |
|------------|--------|----------------|--------|
| 2011       |   |           | 276    |   |
| 2012       |   |           | 262    |   |
| 2013       |   |           | 183    |   |
| 2014       |   |           | 187    |   |
| 2015       |   |           | 191    |   |
| Thereafter |   |           | 640    |   |
| Total      |   | $              | 1,739  |   |

----

|                                                                                    |   | 2010           |   |   | 2009          |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|----------------|--------|--------|---------------|--------|
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | (In thousands) |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   | Fixed Rate     |   |   | Variable Rate |   |   | Fixed Rate |   |   | Variable Rate |   |
| Commitments to make loans                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   | $              | 4,256  |   |          | $      | 3,519 |   |   | $ | 2,518 |   |   | $ | 470 |   |
| Unused lines of credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       |   |           | -      |   |          |   | 11,393 |   |   |   | 354 |   |   |   | 12,032 |   |
| Standby letters of credit                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    |   |           | 339    |   |          |   | - |   |   |   | 364 |   |   |   | - |   |

----

|                                     |   | Shares |    |   | Weighted AverageExercise Price |   |   | Weighted AverageRemaining ContractualTerm (years) |   |   | Intrinsic Value |   |
|------------------------------------------|--------|--------|---------|--------|--------------------------------|--------|--------|---------------------------------------------------|--------|--------|-----------------|--------|
|                                     |   |   |    |   |                           |   |   |                                              |   |   |            |   |
| Outstanding at January 1, 2010           |   |   | 152,250 |   |                           | $      | 10.42  |                                              |   |   |            |   |   |   |
| Granted                                  |   |   | 16,000  |   |                           |   | 6.00   |                                              |   |   |            |   |   |   |
| Exercised                                |   |   | -       |   |                           |   | -      |                                              |   |   |            |   |   |   |
| Forfeited or expired                     |   |   | (5,000  | )      |                           |   | 10.50  |                                              |   |   |            |   |   |   |
| Outstanding at December 30, 2010         |   |   | 163,250 |   |                           | $      | 9.98   |                                              |   |   | 4.7             |   |   | $ | - |   |
|                                     |   |   |    |   |                           |   |   |                                              |   |   |            |   |   |   |   |   |
| Options exercisable at December 30, 2010 |   |   | 143,250 |   |                           | $      | 10.35  |                                              |   |   | 4.2             |   |   | $ | - |   |
|                                     |   |   |    |   |                           |   |   |                                              |   |   |            |   |   |   |   |   |
| Vested and expected to vest              |   |   | 163,250 |   |                           |   | 10     |                                              |   |   | 4.7             |   |   |   | - |   |

|                                                           |   | December 31, 2010 |   |
|----------------------------------------------------------------|--------|-------------------|--------|
|                                                           |   |              |   |
| Risk-free interest rate                                        |   |              | 3.70   | % |
| Expected option life                                           |   |              | 8.0    |   |
| Expected stock price volatility                                |   |              | 0.30   |   |
| Dividend yield                                                 |   |              | 0.00   | % |
| Weighted average fair value of options granted during the year |   | $                 | 2.03   |   |

----

|   | Level 1 – Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.                                                                                                |
|--------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   | Level 2 – Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. |

|   | Level 3 – Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. |
|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                             |   |     |          | Fair Value Measurements at |
|------------------------------------------------------------------|--------|----------|---------------|----------------------------|
|                                                             |   |     |          | December 31, 2010 Using:   |
|                                                             |   |     |          |                       |   | Significant |   |   |
|                                                             |   |     |          | Quoted Prices in           |   | Other |   | Significant |
|                                                             |   |     |          | Active Markets for         |   | Observable |   | Unobservable |
|                                                             |   | Carrying |          | Identical Assets           |   | Inputs |   | Inputs |
|                                                             |   | Value    |          | (Level 1)                  |   | (Level 2) |   | (Level 3) |
| (Dollars in thousands)                                           |   |     |          |                       |   |   |   |   |
| Financial Assets                                                 |   |     |          |                       |   |   |   |   |
| Investment securities available-for sale:                        |   |     |          |                       |   |   |   |   |
|    Mortgage-backed securities – residential |   | $        |   18,128 |                       |   |   | $ | 18,128 |   |   |
|    U.S. government agencies                       |   |     | 614           |                       |   |   |   | 614 |   |   |
|    Other securities                               |   |     | 1,378         |                       | 1,378 |   |   | - |   |   |
| Total available- for-sale                                        |   | $        | 20,120        |                       |   |   | $ | 20,120 |   |   |

----

|                                                                  |   |     |          | Fair Value Measurements at |
|-----------------------------------------------------------------------|--------|----------|---------------|----------------------------|
|                                                                  |   |     |          | December 31, 2009 Using:   |
|                                                                  |   |     |          |                       |   | Significant |   |   |
|                                                                  |   |     |          | Quoted Prices in           |   | Other |   | Significant |
|                                                                  |   |     |          | Active Markets for         |   | Observable |   | Unobservable |
|                                                                  |   | Carrying |          | Identical Assets           |   | Inputs |   | Inputs |
|                                                                  |   | Value    |          | (Level 1)                  |   | (Level 2) |   | (Level 3) |
| (Dollars in thousands)                                                |   |     |          |                       |   |   |   |   |
| Financial Assets                                                      |   |     |          |                       |   |   |   |   |
| Investment securities available-for sale:                             |   |     |          |                       |   |   |   |   |
|    Mortgage-backed securities – residential |   | $        |   25,846 |                       |   |   | $ | 25,846 |   |   |
|    U.S. government agencies                            |   |     | 1,626         |                       |   |   |   | 1,626 |   |   |
|    Other securities                                    |   |     | 1,284         |                       |   |   |   | 1,284 |   |   |
| Total available- for-sale                                             |   | $        | 28,756        |                       |   |   | $ | 28,756 |   |   |

|                                         |   |     |   |   | Fair Value Measurements    |                       |
|----------------------------------------------|--------|----------|--------|--------|----------------------------|----------------------------|
|                                         |   |     |   |   | (in thousands)             |                       |
|                                         |   |     |   |   | at December 31, 2010 Using |                       |
|                                         |   |     |   |   | Identical                  |                       |   | Observable |   |   | Unobservable |   |
|                                         |   | Carrying |   |   | Assets                     |                       |   | Inputs |   |   | Inputs |   |
|                                         |   | Value    |   |   | (Level 1)                  |                       |   | (Level 2) |   |   | (Level 3) |   |
|                                         |   |     |   |   |                       |                       |   |   |   |   |   |   |
| Assets:                                      |   |     |   |   |                       |                       |   |   |   |   |   |   |
|      Impaired Loans |   | $        | 148    |   |                       | $                          | - |   |   | $ | - |   |   | $ | 148 |   |
|      REO Property        |   |     | 325    |   |                       |                       | - |   |   |   | - |   |   |   | 325 |   |
|                                         |   |     |   |   |                       |                       |   |   |   |   |   |   |   |   |   |   |
|                                         |   |     |   |   |                       | Fair Value Measurements    |   |
|                                         |   |     |   |   |                       | (in thousands)             |   |
|                                         |   |     |   |   |                       | at December 31, 2009 Using |   |
|                                         |   |     |   |   |                       | Identical                  |   |   | Observable |   |   | Unobservable |   |
|                                         |   | Carrying |   |   | Assets                     |                       |   | Inputs |   |   | Inputs |   |
|                                         |   | Value    |   |   | (Level 1)                  |                       |   | (Level 2) |   |   | (Level 3) |   |
|                                         |   |     |   |   |                       |                       |   |   |   |   |   |   |   |   |   |   |
| Assets:                                      |   |     |   |   |                       |                       |   |   |   |   |   |   |   |   |   |   |
|     REO Property         |   | $        | 149    |   |                       | $                          | - |   |   | $ | - |   |   | $ | 149 |   |

----

|                                            |   | December 31,   |    |   | December 31, |   |
|-------------------------------------------------|--------|----------------|---------|--------|--------------|--------|
|                                            |   | 2010           |    |   | 2009         |   |
|                                            |   | Carrying       |    |   | Fair         |   |   | Carrying |   |   | Fair |   |
|                                            |   | Amount         |    |   | Value        |   |   | Amount |   |   | Value |   |
|                                            |   | (In thousands) |    |
| Financial assets                                |   |           |    |   |         |   |   |   |   |   |   |   |
| Cash and due from banks                         |   | $              | 13,027  |   |         | $      | 13,027 |   |   | $ | 9,785 |   |   | $ | 9,785 |   |
| Federal Funds Sold and money market investments |   |           | 12      |   |         |   | 12 |   |   |   | 5,000 |   |   |   | 5,000 |   |
| Certificate of deposit placements               |   |           | 2,110   |   |         |   | 2,110 |   |   |   | 3,685 |   |   |   | 3,685 |   |
| Securities available for sale                   |   |           | 20,120  |   |         |   | 20,120 |   |   |   | 28,756 |   |   |   | 28,756 |   |
| Loans held for sale                             |   |           | 400     |   |         |   | 404 |   |   |   | - |   |   |   | - |   |
| Loans, net                                      |   |           | 121,208 |   |         |   | 124,469 |   |   |   | 105,659 |   |   |   | 106,337 |   |
| Federal Home Loan Bank stock                    |   |           | 558     |   |         |   | N/A |   |   |   | 573 |   |   |   | N/A |   |
| Federal Reserve Bank stock                      |   |           | 392     |   |         |   | N/A |   |   |   | 308 |   |   |   | N/A |   |
| Accrued interest receivable                     |   |           | 608     |   |         |   | 608 |   |   |   | 627 |   |   |   | 627 |   |
|                                            |   |           |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Financial Liabilities                           |   |           |    |   |         |   |   |   |   |   |   |   |   |   |   |   |
| Deposits                                        |   |           | 138,217 |   |         |   | 139,764 |   |   |   | 135,352 |   |   |   | 136,610 |   |
| Federal Home Loan Bank advances                 |   |           | 7,523   |   |         |   | 7,684 |   |   |   | 8,508 |   |   |   | 8,605 |   |
| Other borrowings                                |   |           | 2,841   |   |         |   | 2,902 |   |   |   | 1,615 |   |   |   | 1,633 |   |
| Accrued interest payable                        |   |           | 141     |   |         |   | 141 |   |   |   | 151 |   |   |   | 151 |   |

----

|                           |   |                   |   |   |     |   |   | Minimum Capital  |   |   | Classification as |   |
|--------------------------------|--------|------------------------|--------|--------|----------|--------|--------|------------------|--------|--------|-------------------|--------|
|                           |   | Bank Actual            |   |   | Adequacy |   |   | Well Capitalized |   |
|                           |   | Amount                 |   |   | Ratio    |   |   | Amount           |   |   | Ratio             |   |   | Amount |   |   | Ratio |   |
| December 31, 2010              |   | (Dollars in thousands) |   |   |     |   |   |             |   |   |              |   |   |   |   |
| Tier I (core) capital          |   | $                      | 12,757 |   |     |   | 8.0    | %                |   | $      | 4,794             |   |   |   | 3.0 | % |   | $ | 7,991 |   |   |   | 5.0 | % |
| Risk-based capital:            |   |                   |   |   |     |   |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Tier I |   |                   | 12,757 |   |     |   | 11.8   | %                |   |   | 6,392             |   |   |   | 4.0 |   |   |   | 9,589 |   |   |   | 6.0 |   |
|     Total  |   |                   | 14,123 |   |     |   | 13.0   | %                |   |   | 8,689             |   |   |   | 8.0 |   |   |   | 10,861 |   |   |   | 10.0 |   |
|                           |   |                   |   |   |     |   |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31, 2009              |   |                   |   |   |     |   |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Tier I (core) capital          |   | $                      | 10,255 |   |     |   | 6.5    | %                |   | $      | 4,708             |   |   |   | 3.0 | % |   | $ | 7,847 |   |   |   | 5.0 | % |
| Risk-based capital:            |   |                   |   |   |     |   |   |             |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Tier I |   |                   | 10,255 |   |     |   | 10.1   | %                |   |   | N/A               |   |   |   | N/A |   |   |   | 9,417 |   |   |   | 6.0 |   |
|     Total  |   |                   | 11,535 |   |     |   | 11.3   | %                |   |   | 8,180             |   |   |   | 8.0 |   |   |   | 10,225 |   |   |   | 10.0 |   |

----

| CONDENSED BALANCE SHEETS                                                                               |   |
|--------------------------------------------------------------------------------------------------------|--------|
| (Dollars in thousands)                                                                                 |   |
|                                                                                                   |   |   |   |   |   |   |
|                                                                                                   |   | December 31, |   |   | December 31, |   |
|                                                                                                   |   | 2010 |   |   | 2009 |   |
| ASSETS                                                                                                 |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |
| Cash and due from banks                                                                                |   | $ | 32 |   |   | $ | 58 |   |
| Investment in banking subsidiary                                                                       |   |   | 13,596 |   |   |   | 11,042 |   |
| Other assets                                                                                           |   |   | 11 |   |   |   | 5 |   |
|           Total assets                               |   | $ | 13,639 |   |   | $ | 11,105 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| LIABILITIES AND EQUITY                                                                                 |   |   |   |   |   |   |   |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
| Debt                                                                                                   |   | $ | 2,841 |   |   | $ | 1,615 |   |
| Other liabilities                                                                                      |   |   | 20 |   |   |   | 9 |   |
| Shareholders' equity                                                                                   |   |   | 10,778 |   |   |   | 9,481 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |
|           Total liabilities and stockholders' equity |   | $ | 13,639 |   |   | $ | 11,105 |   |
|                                                                                                   |   |   |   |   |   |   |   |   |

| CONDENSED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME                                   |   |
|-------------------------------------------------------------------------------------------|--------|
| Years ended December 31,                                                                  |   |
| (Dollars in thousands)                                                                    |   |
|                                                                                      |   |   |   |   |   |   |
|                                                                                      |   | 2010 |   |   | 2009 |   |
|                                                                                      |   |   |   |   |   |   |
| Interest income                                                                           |   | $ | - |   |   | $ | - |   |
|                                                                                      |   |   |   |   |   |   |   |   |
|    Total income                                                            |   |   | - |   |   |   | - |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Interest expense                                                                          |   |   | 170 |   |   |   | 70 |   |
| Other expense                                                                             |   |   | 34 |   |   |   | 30 |   |
|    Total expense                                                           |   |   | 204 |   |   |   | 100 |   |
|                                                                                      |   |   |   |   |   |   |   |   |
| Income (loss) before income tax                                                           |   |   |   |   |   | ` |   |
|          and undistributed subsidiary income |   |   | (204 | ) |   |   | (100 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Income tax expense (benefit)                                                              |   |   | - |   |   |   | - |   |
| Equity in undistributed subsidiary income                                                 |   |   | 692 |   |   |   | (1,132 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Net income                                                                                |   | $ | 488 |   |   | $ | (1,232 | ) |
|                                                                                      |   |   |   |   |   |   |   |   |
| Comprehensive income (loss)                                                               |   | $ | 504 |   |   | $ | (810 | ) |

----

| CONDENSED STATEMENTS OF CASH FLOWS                                                                                                       |   |
|------------------------------------------------------------------------------------------------------------------------------------------|--------|
| Years ended December 31,                                                                                                                 |   |
| (Dollars in thousands)                                                                                                                   |   |
|                                                                                                                                     |   |   |   |   |   |   |
|                                                                                                                                     |   | 2010 |   |   | 2009 |   |
| Cash Flows from operating activities:                                                                                                    |   |   |   |   |   |   |
|       Net income                                                                                           |   | $ | 488 |   |   | $ | (1,232 | ) |
|       Adjustments:                                                                                         |   |   |   |   |   |   |   |   |
|            Equity in undistributed subsidiary income                              |   |   | (692 | ) |   |   | 1,132 |   |
|            Changes in other assets                                                |   |   | (6 | ) |   |   | 8 |   |
|            Changes in other liabilities                                           |   |   | 9 |   |   |   | (9 | ) |
|                  Net cash from operating activities |   |   | (201 | ) |   |   | (101 | ) |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                    |   |   |   |   |   |   |   |   |
|       Investments in subsidiary                                                                            |   |   | (1,833 | ) |   |   | (1,937 | ) |
|       Other                                                                                                |   |   | - |   |   |   | - |   |
|                 Net cash from investing activities       |   |   | (1,833 | ) |   |   | (1,937 | ) |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                    |   |   |   |   |   |   |   |   |
|      Proceeds of borrowings                                                                                     |   |   | 1,226 |   |   |   | 1,000 |   |
|      Repayments of borrowings                                                                                   |   |   | - |   |   |   | - |   |
|      Proceeds from stock issuance                                                                               |   |   | 782 |   |   |   | 1,049 |   |
|      Purchase of common stock                                                                                   |   |   | - |   |   |   | - |   |
|      Dividends paid                                                                                             |   |   | - |   |   |   | - |   |
|               Net cash from financing activities                   |   |   | 2,008 |   |   |   | 2,049 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Net change in cash and cash equivalents                                                                                                  |   |   | (26 | ) |   |   | 11 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Beginning cash and cash equivalents                                                                                                      |   |   | 58 |   |   |   | 47 |   |
|                                                                                                                                     |   |   |   |   |   |   |   |   |
| Ending cash and cash equivalents                                                                                                         |   | $ | 32 |   |   | $ | 58 |   |

| Item 9. | Changes In And Disagreements With Accountants On Accounting And Financial Disclosure |
|---------|--------------------------------------------------------------------------------------|

| Item 9A(T). | Controls And Procedures |
|-------------|-------------------------|

| Item 9B. | Other Information |
|----------|-------------------|

----

| Item 10. | Directors, Executive Officers and Corporate Governance |
|----------|--------------------------------------------------------|

| Item 11. | Executive Compensation |
|----------|------------------------|

| Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters |
|----------|------------------------------------------------------------------------------------------------|

|                                                   |   | Number of Securitiesto be Issued UponExerciseof OutstandingOptions (1), Warrantsand Rights |    |   | Weighted AverageExercise Priceof OutstandingOptions, Warrant and Rights (2) |   |    | Number of SecuritiesRemaining AvailableFor Future IssuanceUnder EquityCompensation Plans (3) |   |
|--------------------------------------------------------|--------|--------------------------------------------------------------------------------------------|---------|--------|----------------------------------------------------------------------------------|--------|---------|----------------------------------------------------------------------------------------------|--------|
|                                                   |   |                                                                                       |    |   |                                                                             |   |    |                                                                                         |   |
| Equity compensation plans approved by stockholders     |   |                                                                                       | 163,250 |   |                                                                             | $      | 9.98    |                                                                                         |   |   | 16,750 |   |
| Equity compensation plans not approved by stockholders |   |                                                                                       | – |   |                                                                             |   | – |                                                                                         |   |   | – |   |
| Total                                                  |   |                                                                                       | 163,250 |   |                                                                             | $      | 9.98    |                                                                                         |   |   | 16,750 |   |

|   | (1) | Consists of options to purchase 163,250 shares of common stock under the Empire State Bank 2004 Stock Option Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The weighted average exercise price reflects the weighted average exercise price of stock options awarded from the Empire State Bank 2004 Stock Option Agreement. |
|--------|-----|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (3) | Consists of stock options for 16,750 shares of common stock available to be granted from the Empire State Bank 2004 Stock Option Agreement. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------|

| Item 13. | Certain Relationships and Related Transactions, and Director Independence |
|----------|---------------------------------------------------------------------------|

----

| Item 14. | Principal Accountant Fees and Services |
|----------|----------------------------------------|

----

| Item 15. | Exhibits and Financial Statement Schedules |
|----------|--------------------------------------------|

| Exhibit Number |   | Document                                                                                                                                                                      |   | Reference to Previous Filing, If Applicable |
|----------------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|---------------------------------------------|
|           |   |                                                                                                                                                                          |   |                                        |
| 3(1)           |   | Articles of Incorporation                                                                                                                                                     |   | *                                           |
|           |   |                                                                                                                                                                          |   |                                        |
| 3(2)           |   | Amended and Restated Bylaws                                                                                                                                                   |   | *                                           |
|           |   |                                                                                                                                                                          |   |                                        |
| 4              |   | Form of Stock Certificate                                                                                                                                                     |   | **                                          |
|           |   |                                                                                                                                                                          |   |                                        |
| 10.1           |   | Employment Agreement between ES Bancshares, Inc. and Anthony P. Costa, dated December 29, 2008                                                                                |   | ***                                         |
|           |   |                                                                                                                                                                          |   |                                        |
| 10.2           |   | Employment Agreement between Empire State Bank, N.A. and Anthony P. Costa, dated December 29, 2008                                                                            |   | ***                                         |
|           |   |                                                                                                                                                                          |   |                                        |
| 10.3           |   | Employment Agreement between ES Bancshares, Inc. and Philip Guarnieri, dated December 29, 2008                                                                                |   | ***                                         |
|           |   |                                                                                                                                                                          |   |                                        |
| 10.4           |   | Employment Agreement between Empire State Bank, N.A. and Philip Guarnieri, dated December 29, 2008                                                                            |   | ***                                         |
|           |   |                                                                                                                                                                          |   |                                        |
| 10.7           |   | Employment Agreement between ES Bancshares, Inc. and Joseph L. Macchia, dated December 29, 2008.                                                                              |   | ***                                         |
| 10.6           |   | Employment Agreement between Empire State Bank, N.A. and Arthur W. Budich, dated December 29, 2008                                                                            |   | ***                                         |
| 10.8           |   | Employment Agreement between Empire State Bank, N.A. and Joseph L. Macchia, dated December 29, 2008                                                                           |   | ***                                         |
| 10.7           |   | Employment Agreement between ES Bancshares, Inc. and Joseph L. Macchia, dated December 29, 2008.                                                                              |   | ***                                         |
| 10.9           |   | Empire State Bank, N.A. 2004 Stock Option Plan                                                                                                                                |   | **                                          |
| 10.8           |   | Employment Agreement between Empire State Bank, N.A. and Joseph L. Macchia, dated December 29, 2008                                                                           |   | ***                                         |
| 10.10          |   | Empire State Bank, N.A. 2004 Stock Option Plan Stock Option Agreement- Employee                                                                                               |   | ****                                        |
| 10.9           |   | Empire State Bank, N.A. 2004 Stock Option Plan                                                                                                                                |   | **                                          |
| 10.11          |   | Empire State Bank, N.A. 2004 Stock Option Plan Stock Option Agreement- Outside Directors                                                                                      |   | ****                                        |
| 31.1           |   | Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                            |   |                                        |
| 23             |   | Consent of Crowe Horwath LLP                                                                                                                                                  |   |                                        |
| 31.2           |   | Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002                                                                            |   |                                        |
|           |   |                                                                                                                                                                          |   |                                        |
| 32             |   | Certification of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 |   |                                        |

----

| * | Incorporated by reference to the Company’s Quarterly Report of Form 10-QSB for the period ended September 30, 2006 filed with the SEC on November 14, 2006. |
|---|-------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ** | Incorporated by reference to the Company’s Registration Statement on Form S-4 filed on April 14, 2006 and subsequently amended on April 18, 2006, May 1, 2006, May 16, 2006, and May 23, 2006 and a post-effective amendment filed on June 9, 2006. |
|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| *** | Incorporated by reference to the Company Current Report on Form 8-K filed with the SEC on January 5, 2009. |
|-----|------------------------------------------------------------------------------------------------------------|

| **** | Incorporated by reference to the Company’s Annual Report of Form 10-KSB for the year ended December 31, 2007 filed with the SEC on March 31, 2008. |
|------|----------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                             | ES BANCSHARES, INC. |                                                 |
|----------------------------------|---------------------|------------------------------------------------------|
|                             |                |                                                 |
|                             |                |                                                 |   |
| Date: March 30, 2011   | By:                 | /s/ Anthony Costa                               |   |
|                             |                | Anthony Costa,                                       |   |
|                             |                | Chairman of the Board and Co-Chief Executive Officer |   |
|                             |                |  (Duly Authorized Representative)               |   |

| Date: March 30, 2011 | /s/ Philip Guarnieri                                                 |
|----------------------|----------------------------------------------------------------------|
|                 | Philip Guarnieri, President and Co-Chief Executive Officer, Director |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ Thomas Sperzel                                                   |
|                 | Thomas Sperzel, Senior Vice President & Chief Financial Officer  |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ Walter Daszkowski                                                |
|                 | Walter Daszkowski, Director                                          |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ Andrew Finklestein, Esq.                                         |
|                 | Andrew Finklestein Esq., Director                                    |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ Gale Foster, Esq.                                                |
|                 | Gale Foster Esq., Director                                           |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ David Freer, Jr.                                                 |
|                 | David Freer, Jr., Director                                           |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ Harold Kahn                                                      |
|                 | Harold Kahn, Director                                                |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ David Mesches                                                    |
|                 | David Mesches, Director                                              |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ Michael Ostrow                                                   |
|                 | Michael Ostrow, Director                                             |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ Albert Pagano                                                    |
|                 | Albert Pagano, Director                                              |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ Peter Savago                                                     |
|                 | Peter Savago, Director                                               |
|                 |                                                                 |
| Date: March 30, 2011 | /s/ Thomas D. Weddell                                                |
|                 | Thomas D. Weddell, Director                                          |