| Vermont                                                                                             | 03-0284070                           |
|-----------------------------------------------------------------------------------------------------|--------------------------------------|
| (State of Incorporation)                                                                            | (IRS Employer Identification Number) |
| Address of Principal Executive Offices:  4811 US Route 5, Derby, Vermont  05829 |

| Title of Each Class | Name of each exchange on which registered |
|---------------------|-------------------------------------------|
| NONE                | NONE                                      |

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

----

|                                   | December 31, |
|----------------------------------------|--------------|
|                                   | 2009         | 2008 |
|                                   |         |   |
| Return on Average Assets               | 0.76%        | 0.45% |
| Return on Average Equity               | 10.44%       | 6.30% |
| Dividend Payout Ratio (1)              | 60.76%       | 147.83% |
| Average Equity to Average Assets Ratio | 7.27%        | 7.10% |

|                                |   | For years ended        |   |
|-------------------------------------|--------|------------------------|--------|
|                                |   | December 31,           |   |
|                                |   | 2009                   |   |   | 2008 |   |
|                                |   | (Dollars in Thousands) |   |
|                                |   |                   |   |   |   |   |
| Net interest income as presented    |   | $                      | 16,435 |   |   | $ | 16,584 |   |
| Effect of tax-exempt income         |   |                   | 705    |   |   |   | 884 |   |
| Net interest income, tax equivalent |   | $                      | 17,140 |   |   | $ | 17,468 |   |

| Table A                                                                                                                    |   |
|----------------------------------------------------------------------------------------------------------------------------|--------|
| Average Balances and Interest Rates                                                                                        |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |   |   |   | 2009 |   |   |   |   |   |   |   |   | 2008 |   |   |   |   |
|                                                                                                                       |   | Average |   |   | Income/ |   |   | Rate/ |   |   | Average |   |   | Income/ |   |   | Rate/ |   |
|                                                                                                                       |   | Balance |   |   | Expense |   |   | Yield |   |   | Balance |   |   | Expense |   |   | Yield |   |
| Interest-Earning Assets                                                                                                    |   | (Dollars in Thousands) |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Loans (1)                                                                                                            |   | $ | 370,527 |   |   | $ | 21,908 |   |   |   | 5.91 | % |   | $ | 358,127 |   |   | $ | 23,633 |   |   |   | 6.60 | % |
|  Taxable investment securities                                                                                        |   |   | 25,344 |   |   |   | 779 |   |   |   | 3.07 | % |   |   | 31,875 |   |   |   | 1,464 |   |   |   | 4.59 | % |
|  Tax exempt investment securities                                                                                     |   |   | 46,299 |   |   |   | 2,072 |   |   |   | 4.48 | % |   |   | 45,077 |   |   |   | 2,624 |   |   |   | 5.82 | % |
|  Federal funds sold and overnight deposits                                                                            |   |   | 170 |   |   |   | 0 |   |   |   | 0.00 | % |   |   | 1,734 |   |   |   | 64 |   |   |   | 3.69 | % |
|  FHLBB stock (2)                                                                                                      |   |   | 3,319 |   |   |   | 0 |   |   |   | 0.00 | % |   |   | 3,319 |   |   |   | 122 |   |   |   | 3.68 | % |
|  Other investments                                                                                                    |   |   | 975 |   |   |   | 65 |   |   |   | 6.67 | % |   |   | 843 |   |   |   | 64 |   |   |   | 7.59 | % |
|      Total                                                                                        |   | $ | 446,634 |   |   | $ | 24,824 |   |   |   | 5.56 | % |   | $ | 440,975 |   |   | $ | 27,971 |   |   |   | 6.34 | % |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  NOW & money market funds                                                                                         |   | $ | 126,369 |   |   | $ | 1,293 |   |   |   | 1.02 | % |   | $ | 123,203 |   |   | $ | 2,069 |   |   |   | 1.68 | % |
|  Savings deposits                                                                                                     |   |   | 53,218 |   |   |   | 163 |   |   |   | 0.31 | % |   |   | 50,087 |   |   |   | 184 |   |   |   | 0.37 | % |
|  Time deposits                                                                                                        |   |   | 169,267 |   |   |   | 4,692 |   |   |   | 2.77 | % |   |   | 176,916 |   |   |   | 6,576 |   |   |   | 3.72 | % |
|  Federal funds purchased and other borrowed funds                                                                     |   |   | 21,189 |   |   |   | 235 |   |   |   | 1.11 | % |   |   | 14,662 |   |   |   | 360 |   |   |   | 2.46 | % |
|  Repurchase agreements                                                                                                |   |   | 18,401 |   |   |   | 255 |   |   |   | 1.39 | % |   |   | 16,319 |   |   |   | 263 |   |   |   | 1.61 | % |
|  Capital lease obligations                                                                                            |   |   | 894 |   |   |   | 72 |   |   |   | 8.05 | % |   |   | 913 |   |   |   | 75 |   |   |   | 8.21 | % |
|  Junior subordinated debentures                                                                                       |   |   | 12,887 |   |   |   | 974 |   |   |   | 7.56 | % |   |   | 12,887 |   |   |   | 976 |   |   |   | 7.57 | % |
|      Total                                                                                        |   | $ | 402,225 |   |   | $ | 7,684 |   |   |   | 1.91 | % |   | $ | 394,987 |   |   | $ | 10,503 |   |   |   | 2.66 | % |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                        |   |   |   |   |   | $ | 17,140 |   |   |   |   |   |   |   |   |   |   | $ | 17,468 |   |   |   |   |   |
| Net interest spread (3)                                                                                                    |   |   |   |   |   |   |   |   |   |   | 3.65 | % |   |   |   |   |   |   |   |   |   |   | 3.68 | % |
| Interest margin (4)                                                                                                        |   |   |   |   |   |   |   |   |   |   | 3.84 | % |   |   |   |   |   |   |   |   |   |   | 3.96 | % |
|                                                                                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Included in gross loans are non-accrual loans with an average balance of $3,193,691 and $1,186,511 for the twelve |   |
| months ended 2009 and 2008, respectively. Loans are stated before deduction of unearned discount and allowance        |   |
| for loan losses.                                                                                                           |   |
| (2) Dividends on FHLBB stock ceased during the fourth quarter of 2008 and are suspended until further notice.         |   |
| (3) Net interest spread is the difference between the yield on earning assets and the rate paid on interest-bearing   |   |
| liabilities.                                                                                                               |   |
| (4) Interest margin is net interest income divided by average earning assets.                                         |   |

| Table B                                                      |   |
|--------------------------------------------------------------|--------|
| Changes in Interest Income and Interest Expense              |   |
|                                                         |   | 2009 vs. 2008 |   |
|                                                         |   | Variance |   |   | Variance |   |   |   |   |
| Rate / Volume                                                |   | Due to |   |   | Due to |   |   | Total |   |
|                                                         |   | Rate(1) |   |   | Volume(1) |   |   | Variance |   |
|                                                         |   | (Dollars in Thousands) |   |
| Interest-Earning Assets                                      |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |
|  Loans                                                  |   | $ | (2,544 | ) |   | $ | 818 |   |   | $ | (1,726 | ) |
|  Taxable investment securities                          |   |   | (484 | ) |   |   | (200 | ) |   |   | (684 | ) |
|  Tax exempt investment securities                       |   |   | (622 | ) |   |   | 71 |   |   |   | (551 | ) |
|  Federal funds sold and overnight deposits              |   |   | (60 | ) |   |   | (4 | ) |   |   | (64 | ) |
|  FHLBB stock                                            |   |   | (122 | ) |   |   | 0 |   |   |   | (122 | ) |
|  Other investments                                      |   |   | (10 | ) |   |   | 10 |   |   |   | 0 |   |
|      Total                          |   | $ | (3,842 | ) |   | $ | 695 |   |   | $ | (3,147 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-Bearing Liabilities                                 |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|  NOW & money market funds                           |   | $ | (829 | ) |   | $ | 53 |   |   | $ | (776 | ) |
|  Savings deposits                                       |   |   | (34 | ) |   |   | 12 |   |   |   | (22 | ) |
|  Time deposits                                          |   |   | (1,672 | ) |   |   | (212 | ) |   |   | (1,884 | ) |
|  Federal funds purchased and other borrowed funds       |   |   | (284 | ) |   |   | 160 |   |   |   | (124 | ) |
|  Repurchase agreements                                  |   |   | (41 | ) |   |   | 33 |   |   |   | (8 | ) |
|  Capital lease obligations                              |   |   | (2 | ) |   |   | (1 | ) |   |   | (3 | ) |
|  Junior subordinated debentures                         |   |   | (2 | ) |   |   | 0 |   |   |   | (2 | ) |
|      Total                          |   | $ | (2,864 | ) |   | $ | 45 |   |   | $ | (2,819 | ) |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
|      Changes in Net Interest Income |   | $ | (978 | ) |   | $ | 650 |   |   | $ | (328 | ) |

|  (1)  Items which have shown a year-to-year increase in volume have variances allocated as follows:                |
|-----------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                              | Variance due to rate = Change in rate x new volume |
|                                                                                                                              | Variance due to volume = Change in volume x old rate |
|       Items which have shown a year-to-year decrease in volume have variances allocated as follows: |
|                                                                                                                              | Variance due to rate = Change in rate x old volume |
|                                                                                                                              | Variance due to volume = Change in volume x new rate |

----

| Distribution of Assets, Liabilities and Shareholder's Equity                                   |   |
|------------------------------------------------------------------------------------------------|--------|
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   | Year ended December 31, |   |
|                                                                                           |   | 2009 |   |   | 2008 |   |   | 2007 |   |
| Average Assets                                                                                 |   | Balance |   |   | % |   |   | Balance |   |   | % |   |   | Balance |   |   | % |   |
|                                                                                           |   | (Dollars in Thousands) |   |
| Cash and due from banks                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Non-interest bearing                                                                     |   | $ | 8,672 |   |   |   | 1.76 | % |   | $ | 9,504 |   |   |   | 1.93 | % |   | $ | 7,004 |   |   |   | 2.01 | % |
| Federal funds sold and overnight deposits                                                      |   |   | 170 |   |   |   | 0.03 | % |   |   | 1,734 |   |   |   | 0.35 | % |   |   | 10,203 |   |   |   | 2.93 | % |
| Taxable investment securities(1)                                                               |   |   | 25,344 |   |   |   | 5.13 | % |   |   | 31,875 |   |   |   | 6.49 | % |   |   | 22,567 |   |   |   | 6.49 | % |
| Tax-exempt investment securities(1)                                                            |   |   | 46,299 |   |   |   | 9.38 | % |   |   | 45,077 |   |   |   | 9.17 | % |   |   | 25,384 |   |   |   | 7.30 | % |
| Other securities(1)                                                                            |   |   | 3,907 |   |   |   | 0.79 | % |   |   | 3,775 |   |   |   | 0.77 | % |   |   | 2,391 |   |   |   | 0.69 | % |
|   Total investment securities                                                        |   |   | 75,550 |   |   |   | 15.30 | % |   |   | 80,727 |   |   |   | 16.43 | % |   |   | 50,342 |   |   |   | 14.48 | % |
| Gross loans                                                                                    |   |   | 370,527 |   |   |   | 75.03 | % |   |   | 358,127 |   |   |   | 72.86 | % |   |   | 263,597 |   |   |   | 75.78 | % |
| Reserve for loan losses and accrued fees                                                       |   |   | (3,624 | ) |   |   | -0.73 | % |   |   | (3,399 | ) |   |   | -0.69 | % |   |   | (2,852 | ) |   |   | -0.82 | % |
| Premises and equipment                                                                         |   |   | 14,286 |   |   |   | 2.89 | % |   |   | 15,570 |   |   |   | 3.17 | % |   |   | 12,111 |   |   |   | 3.48 | % |
| Other real estate owned                                                                        |   |   | 435 |   |   |   | 0.09 | % |   |   | 63 |   |   |   | 0.01 | % |   |   | 0 |   |   |   | 0.00 | % |
| Investment in Capital trust                                                                    |   |   | 387 |   |   |   | 0.08 | % |   |   | 387 |   |   |   | 0.08 | % |   |   | 65 |   |   |   | 0.02 | % |
| Bank owned life insurance                                                                      |   |   | 3,748 |   |   |   | 0.76 | % |   |   | 3,622 |   |   |   | 0.74 | % |   |   | 0 |   |   |   | 0.00 | % |
| Core deposit intangible                                                                        |   |   | 2,980 |   |   |   | 0.60 | % |   |   | 3,710 |   |   |   | 0.76 | % |   |   | 0 |   |   |   | 0.00 | % |
| Goodwill                                                                                       |   |   | 11,574 |   |   |   | 2.34 | % |   |   | 10,785 |   |   |   | 2.19 | % |   |   | 0 |   |   |   | 0.00 | % |
| Other assets                                                                                   |   |   | 9,135 |   |   |   | 1.85 | % |   |   | 10,665 |   |   |   | 2.17 | % |   |   | 7,364 |   |   |   | 2.12 | % |
|           Total average assets               |   | $ | 493,840 |   |   |   | 100 | % |   | $ | 491,495 |   |   |   | 100 | % |   | $ | 347,834 |   |   |   | 100 | % |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Liabilities                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Demand deposits                                                                                |   | $ | 51,989 |   |   |   | 10.53 | % |   | $ | 55,053 |   |   |   | 11.20 | % |   | $ | 47,614 |   |   |   | 13.69 | % |
| Now and money market accounts                                                                  |   |   | 126,369 |   |   |   | 25.59 | % |   |   | 123,203 |   |   |   | 25.07 | % |   |   | 77,431 |   |   |   | 22.26 | % |
| Savings accounts                                                                               |   |   | 53,218 |   |   |   | 10.77 | % |   |   | 50,087 |   |   |   | 10.19 | % |   |   | 39,005 |   |   |   | 11.21 | % |
| Time deposits                                                                                  |   |   | 169,267 |   |   |   | 34.28 | % |   |   | 176,916 |   |   |   | 36.00 | % |   |   | 132,393 |   |   |   | 38.06 | % |
|           Total average deposits             |   |   | 400,843 |   |   |   | 81.17 | % |   |   | 405,259 |   |   |   | 82.46 | % |   |   | 296,443 |   |   |   | 85.22 | % |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other borrowed funds                                                                           |   |   | 22,083 |   |   |   | 4.47 | % |   |   | 14,662 |   |   |   | 2.98 | % |   |   | 1,685 |   |   |   | 0.49 | % |
| Repurchase agreements                                                                          |   |   | 18,401 |   |   |   | 3.73 | % |   |   | 16,319 |   |   |   | 3.32 | % |   |   | 13,825 |   |   |   | 3.97 | % |
| Junior subordinated debentures                                                                 |   |   | 12,887 |   |   |   | 2.61 | % |   |   | 12,887 |   |   |   | 2.62 | % |   |   | 2,154 |   |   |   | 0.62 | % |
| Other liabilities                                                                              |   |   | 3,721 |   |   |   | 0.75 | % |   |   | 7,452 |   |   |   | 1.52 | % |   |   | 2,255 |   |   |   | 0.65 | % |
|           Total average liabilities          |   |   | 457,935 |   |   |   | 92.73 | % |   |   | 456,579 |   |   |   | 92.90 | % |   |   | 316,362 |   |   |   | 90.95 | % |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Shareholders' Equity                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Preferred stock                                                                                |   |   | 2,500 |   |   |   | 0.50 | % |   |   | 2,500 |   |   |   | 0.51 | % |   |   | 109 |   |   |   | 0.03 | % |
| Common stock                                                                                   |   |   | 11,787 |   |   |   | 2.39 | % |   |   | 11,601 |   |   |   | 2.36 | % |   |   | 11,222 |   |   |   | 3.23 | % |
| Additional paid-in capital                                                                     |   |   | 25,892 |   |   |   | 5.24 | % |   |   | 25,488 |   |   |   | 5.19 | % |   |   | 23,659 |   |   |   | 6.80 | % |
| Accumulated deficit                                                                            |   |   | (1,896 | ) |   |   | -0.38 | % |   |   | (2,060 | ) |   |   | -0.42 | % |   |   | (741 | ) |   |   | -0.21 | % |
| Less: Treasury stock                                                                           |   |   | (2,623 | ) |   |   | -0.53 | % |   |   | (2,623 | ) |   |   | -0.54 | % |   |   | (2,618 | ) |   |   | -0.75 | % |
| Accumulated other comprehensive                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   income (loss)(1)                                                                   |   |   | 245 |   |   |   | 0.05 | % |   |   | 10 |   |   |   | 0.00 | % |   |   | (159 | ) |   |   | -0.05 | % |
|           Total average shareholders' equity |   |   | 35,905 |   |   |   | 7.27 | % |   |   | 34,916 |   |   |   | 7.10 | % |   |   | 31,472 |   |   |   | 9.05 | % |
|           Total average liabilities and      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|             shareholders' equity   |   | $ | 493,840 |   |   |   | 100 | % |   | $ | 491,495 |   |   |   | 100 | % |   | $ | 347,834 |   |   |   | 100 | % |

| (1) | In accordance with accounting for investments, securities classified as held to maturity are carried at book value and securities classified as available for sale are carried at fair value with the unrealized gain (loss), net of applicable income taxes, reported as a net amount in accumulated other comprehensive income (loss).  The Company does not carry, nor does it intend to carry, securities classified as trading. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| Maturity Date                 |   | (Dollars in Thousands) |   |
|-------------------------------|--------|------------------------|--------|
|                          |   |                   |   |
| 3 Months or Less              |   | $                      | 16,103 |   |
| Over 3 through 6 Months       |   |                   | 15,673 |   |
| Over 6 through 12 Months      |   |                   | 8,646  |   |
| Over 12 Months                |   |                   | 22,840 |   |
|     Total |   | $                      | 63,262 |   |

| One Year Horizon                                      | Two Year Horizon      |
|-------------------------------------------------------|-----------------------|
| Rate Change        | Percent Change in NII | Rate Change      | Percent Change in NII |
|                                                  |                  |   |   |
| Down 100 basis points                                 | -0.79%                | Down 100 basis points | -4.57% |
| Up 200 basis points                                   | -0.24%                | Up 200 basis points |  2.58% |

----

| Composition of Loan Portfolio(1)                                                                                               |   |
|--------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                                                           |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                                                                                           |   | Total |   |   | % of |   |   | Total |   |   | % of |   |   | Total |   |   | % of |   |   | Total |   |   | % of |   |   | Total |   |   | % of |   |
|                                                                                                                           |   | Loans |   |   | Total |   |   | Loans |   |   | Total |   |   | Loans |   |   | Total |   |   | Loans |   |   | Total |   |   | Loans |   |   | Total |   |
|                                                                                                                           |   | (Dollars in Thousands) |   |
| Real Estate Loans                                                                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Construction & Land                                                                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Development                                                                                            |   | $ | 16,869 |   |   |   | 4.41 | % |   | $ | 15,204 |   |   |   | 4.15 | % |   | $ | 12,896 |   |   |   | 3.62 | % |   | $ | 11,889 |   |   |   | 4.42 | % |   | $ | 13,931 |   |   |   | 5.52 | % |
|   Farm Land                                                                                                          |   |   | 10,039 |   |   |   | 2.63 | % |   |   | 8,534 |   |   |   | 2.33 | % |   |   | 9,646 |   |   |   | 2.70 | % |   |   | 3,217 |   |   |   | 1.19 | % |   |   | 2,870 |   |   |   | 1.14 | % |
|   1-4 Family Residential                                                                                             |   |   | 216,458 |   |   |   | 56.62 | % |   |   | 213,279 |   |   |   | 58.28 | % |   |   | 195,845 |   |   |   | 54.92 | % |   |   | 157,008 |   |   |   | 58.30 | % |   |   | 144,777 |   |   |   | 57.40 | % |
|   Commercial                                                                                                         |   |   | 97,620 |   |   |   | 25.54 | % |   |   | 88,547 |   |   |   | 24.19 | % |   |   | 85,576 |   |   |   | 24.00 | % |   |   | 54,236 |   |   |   | 20.14 | % |   |   | 48,505 |   |   |   | 19.23 | % |
| Loans to Finance                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Agricultural Production                                                                                            |   |   | 952 |   |   |   | 0.25 | % |   |   | 884 |   |   |   | 0.24 | % |   |   | 2,431 |   |   |   | 0.68 | % |   |   | 224 |   |   |   | 0.08 | % |   |   | 214 |   |   |   | 0.09 | % |
| Commercial & Industrial                                                                                                    |   |   | 26,496 |   |   |   | 6.93 | % |   |   | 23,307 |   |   |   | 6.37 | % |   |   | 31,258 |   |   |   | 8.77 | % |   |   | 21,993 |   |   |   | 8.17 | % |   |   | 20,049 |   |   |   | 7.95 | % |
| Consumer Loans                                                                                                                 |   |   | 13,635 |   |   |   | 3.57 | % |   |   | 15,922 |   |   |   | 4.35 | % |   |   | 18,461 |   |   |   | 5.18 | % |   |   | 20,588 |   |   |   | 7.65 | % |   |   | 21,296 |   |   |   | 8.44 | % |
| All Other Loans                                                                                                                |   |   | 190 |   |   |   | 0.05 | % |   |   | 317 |   |   |   | 0.09 | % |   |   | 459 |   |   |   | 0.13 | % |   |   | 141 |   |   |   | 0.05 | % |   |   | 567 |   |   |   | 0.23 | % |
|           Gross Loans                                                        |   |   | 382,259 |   |   |   | 100 | % |   |   | 365,994 |   |   |   | 100 | % |   |   | 356,572 |   |   |   | 100 | % |   |   | 269,296 |   |   |   | 100 | % |   |   | 252,209 |   |   |   | 100 | % |
|                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Less:                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Allowance for Loan                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Losses                                                                                           |   |   | (3,451 | ) |   |   |   |   |   |   | (3,233 | ) |   |   |   |   |   |   | (3,026 | ) |   |   |   |   |   |   | (2,268 | ) |   |   |   |   |   |   | (2,189 | ) |   |   |   |   |
|   Deferred Loan Fees                                                                                                 |   |   | (152 | ) |   |   |   |   |   |   | (301 | ) |   |   |   |   |   |   | (443 | ) |   |   |   |   |   |   | (632 | ) |   |   |   |   |   |   | (684 | ) |   |   |   |   |
|           Net Loans                                                          |   | $ | 378,656 |   |   |   |   |   |   | $ | 362,460 |   |   |   |   |   |   | $ | 353,103 |   |   |   |   |   |   | $ | 266,396 |   |   |   |   |   |   | $ | 249,336 |   |   |   |   |   |
|                                                                                                                           |   |
| (1) Includes loans held for sale and the loan portfolio of the acquired LyndonBank at fair value for 2009, 2008 and 2007; |   |
| balances presented for 2006 and 2005 do not include LyndonBank loans.                                                          |   |

| Maturity Schedule                               |   |
|-------------------------------------------------|--------|
|                                            |   |   |   |   |   |   |
|                                            |   | Fixed Rate Loans |   |   | Variable Rate Loans |   |
|                                            |   | Within |   |   |   | 2 - 5 |   |   | After |   |   |   |   |   | Within |   |   |   | 2 - 5 |   |   | After |   |   |   |   |
|                                            |   | 1 Year |   |   | Years |   |   | 5 years |   |   | Total |   |   | 1 Year |   |   | Years |   |   | 5 years |   |   | Total |   |
|                                            |   | (Dollars in Thousands) |   |
| Real Estate                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Construction & Land Development |   | $ | 4,021 |   |   | $ | 137 |   |   | $ | 5,438 |   |   | $ | 9,596 |   |   | $ | 6,117 |   |   | $ | 506 |   |   | $ | 650 |   |   | $ | 7,273 |   |
|   Secured by Farm Land                |   |   | 73 |   |   |   | 497 |   |   |   | 2,829 |   |   |   | 3,399 |   |   |   | 3,644 |   |   |   | 2,123 |   |   |   | 873 |   |   |   | 6,640 |   |
|   Commercial Real Estate              |   |   | 5,693 |   |   |   | 3,331 |   |   |   | 10,248 |   |   |   | 19,272 |   |   |   | 25,242 |   |   |   | 49,906 |   |   |   | 3,200 |   |   |   | 78,348 |   |
| Loans to Finance Agricultural Production        |   |   | 15 |   |   |   | 79 |   |   |   | 66 |   |   |   | 160 |   |   |   | 693 |   |   |   | 99 |   |   |   | 0 |   |   |   | 792 |   |
| Commercial & Industrial Loans               |   |   | 3,029 |   |   |   | 7,026 |   |   |   | 875 |   |   |   | 10,930 |   |   |   | 11,025 |   |   |   | 4,555 |   |   |   | (14 | ) |   |   | 15,566 |   |
|                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total                                           |   | $ | 12,831 |   |   | $ | 11,070 |   |   | $ | 19,456 |   |   | $ | 43,357 |   |   | $ | 46,721 |   |   | $ | 57,189 |   |   | $ | 4,709 |   |   | $ | 108,619 |   |

----

| Summary of Loan Loss Experience (1)                               |   |
|-------------------------------------------------------------------|--------|
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| December 31,                                                      |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                              |   | (Dollars in Thousands) |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Outstanding End of Year                                     |   | $ | 382,259 |   |   | $ | 365,994 |   |   | $ | 356,572 |   |   | $ | 269,296 |   |   | $ | 252,209 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average Loans Outstanding During Year                             |   | $ | 370,527 |   |   | $ | 358,127 |   |   | $ | 263,597 |   |   | $ | 263,901 |   |   | $ | 238,376 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loan Loss Reserve, Beginning of Year                              |   | $ | 3,233 |   |   | $ | 3,026 |   |   | $ | 2,268 |   |   | $ | 2,189 |   |   | $ | 2,153 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans Charged Off:                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Residential Real Estate                               |   |   | 110 |   |   |   | 162 |   |   |   | 0 |   |   |   | 6 |   |   |   | 5 |   |
|   Commercial Real Estate                                |   |   | 80 |   |   |   | 16 |   |   |   | 51 |   |   |   | 17 |   |   |   | 0 |   |
|   Commercial                                            |   |   | 140 |   |   |   | 109 |   |   |   | 25 |   |   |   | 13 |   |   |   | 45 |   |
|   Consumer                                              |   |   | 146 |   |   |   | 115 |   |   |   | 172 |   |   |   | 91 |   |   |   | 130 |   |
|           Total |   |   | 476 |   |   |   | 402 |   |   |   | 248 |   |   |   | 127 |   |   |   | 180 |   |
| Recoveries:                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Residential Real Estate                               |   |   | 2 |   |   |   | 7 |   |   |   | 14 |   |   |   | 1 |   |   |   | 1 |   |
|   Commercial Real Estate                                |   |   | 18 |   |   |   | 2 |   |   |   | 12 |   |   |   | 6 |   |   |   | 0 |   |
|   Commercial                                            |   |   | 12 |   |   |   | 21 |   |   |   | 3 |   |   |   | 3 |   |   |   | 6 |   |
|   Consumer                                              |   |   | 37 |   |   |   | 80 |   |   |   | 42 |   |   |   | 58 |   |   |   | 59 |   |
|           Total |   |   | 69 |   |   |   | 110 |   |   |   | 71 |   |   |   | 68 |   |   |   | 66 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Loans Charged Off                                             |   |   | 407 |   |   |   | 292 |   |   |   | 177 |   |   |   | 59 |   |   |   | 114 |   |
| Provision Charged to Income                                       |   |   | 625 |   |   |   | 499 |   |   |   | 148 |   |   |   | 138 |   |   |   | 150 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan loss of acquired bank                          |   |   | 0 |   |   |   | 0 |   |   |   | 787 |   |   |   | 0 |   |   |   | 0 |   |
| Loan Loss Reserve, End of Year                                    |   | $ | 3,451 |   |   | $ | 3,233 |   |   | $ | 3,026 |   |   | $ | 2,268 |   |   | $ | 2,189 |   |
|                                                              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net Losses as a Percent of Average Loans                          |   |   | 0.11 | % |   |   | 0.08 | % |   |   | 0.07 | % |   |   | 0.02 | % |   |   | 0.05 | % |
| Provision Charged to Income as a Percent                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   of Average Loans                                      |   |   | 0.17 | % |   |   | 0.14 | % |   |   | 0.06 | % |   |   | 0.05 | % |   |   | 0.06 | % |
| At End of Year:                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Loan Loss Reserve as a Percent of                           |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Outstanding Loans                               |   |   | 0.90 | % |   |   | 0.88 | % |   |   | 0.85 | % |   |   | 0.84 | % |   |   | 0.87 | % |

| Allocation of Allowance for Loan Losses (1)                       |   |
|-------------------------------------------------------------------|--------|
| December 31,                                                      |   | 2009 |   |   | % |   |   | 2008 |   |   | % |   |   | 2007 |   |   | % |   |   | 2006 |   |   | % |   |   | 2005 |   |   | % |   |
|                                                              |   | (Dollars in Thousands) |   |
| Domestic                                                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|  Residential Real Estate                                     |   | $ | 1,589 |   |   |   | 57 | % |   | $ | 1,404 |   |   |   | 58 | % |   | $ | 1,258 |   |   |   | 55 | % |   | $ | 1,055 |   |   |   | 58 | % |   | $ | 973 |   |   |   | 57 | % |
|  Commercial (2)                                              |   |   | 1,616 |   |   |   | 40 | % |   |   | 1,497 |   |   |   | 37 | % |   |   | 1,486 |   |   |   | 40 | % |   |   | 956 |   |   |   | 34 | % |   |   | 858 |   |   |   | 34 | % |
|  Consumer                                                    |   |   | 182 |   |   |   | 3 | % |   |   | 255 |   |   |   | 5 | % |   |   | 248 |   |   |   | 5 | % |   |   | 204 |   |   |   | 8 | % |   |   | 229 |   |   |   | 9 | % |
| Unallocated                                                       |   |   | 64 |   |   |   | 0 | % |   |   | 77 |   |   |   | 0 | % |   |   | 34 |   |   |   | 0 | % |   |   | 53 |   |   |   | 0 | % |   |   | 129 |   |   |   | 0 | % |
|           Total |   | $ | 3,451 |   |   |   | 100 | % |   | $ | 3,233 |   |   |   | 100 | % |   | $ | 3,026 |   |   |   | 100 | % |   | $ | 2,268 |   |   |   | 100 | % |   | $ | 2,189 |   |   |   | 100 | % |

| (1)  Does not include loan loss allowance information for the acquired LyndonBank for 2005 through 2007. |
|--------------------------------------------------------------------------------------------------------------------|
| (2)  Includes commercial loans secured by real estate, as well as unsecured commercial loans and those   |
|       secured by other types of collateral                                           |

| Non-Performing Assets (1)                                    |   |
|--------------------------------------------------------------|--------|
| December 31,                                                 |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |   | 2005 |   |
|                                                         |   | (Dollars in Thousands) |   |
| Accruing Loans Past Due 90 Days or More:                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Consumer                                         |   | $ | 20 |   |   | $ | 2 |   |   | $ | 11 |   |   | $ | 32 |   |   | $ | 8 |   |
|   Commercial                                       |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |   |   | 60 |   |   |   | 0 |   |
|   Commercial Real Estate                           |   |   | 0 |   |   |   | 0 |   |   |   | 70 |   |   |   | 0 |   |   |   | 0 |   |
|   Residential Real Estate                          |   |   | 538 |   |   |   | 245 |   |   |   | 57 |   |   |   | 113 |   |   |   | 169 |   |
|      Total Past Due 90 Days or More |   |   | 558 |   |   |   | 247 |   |   |   | 138 |   |   |   | 205 |   |   |   | 177 |   |
| Non-accrual Loans                                            |   |   | 3,844 |   |   |   | 2,119 |   |   |   | 1,338 |   |   |   | 721 |   |   |   | 436 |   |
| Total Non-accrual, Past Due Loans                            |   |   | 4,402 |   |   |   | 2,366 |   |   |   | 1,476 |   |   |   | 926 |   |   |   | 613 |   |
| Other Real Estate Owned                                      |   |   | 743 |   |   |   | 185 |   |   |   | 0 |   |   |   | 0 |   |   |   | 0 |   |
|    Total Non Performing Loans                 |   | $ | 5,145 |   |   | $ | 2,551 |   |   | $ | 1,476 |   |   | $ | 926 |   |   | $ | 613 |   |
|                                                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Percent of Gross Loans                                       |   |   | 1.35 | % |   |   | 0.70 | % |   |   | 0.41 | % |   |   | 0.34 | % |   |   | 0.24 | % |
| Reserve Coverage of Non Performing Loans                     |   |   | 67.07 | % |   |   | 126.73 | % |   |   | 205.01 | % |   |   | 244.92 | % |   |   | 357.10 | % |

----

|                                                               |   |                   |   |   | Gross      |   |   | Gross      |   |   |   |   |
|--------------------------------------------------------------------|--------|------------------------|--------|--------|------------|--------|--------|------------|--------|--------|--------|--------|
|                                                               |   | Amortized              |   |   | Unrealized |   |   | Unrealized |   |   | Fair   |   |
|                                                               |   | Cost                   |   |   | Gains      |   |   | Losses     |   |   | Value  |   |
| December 31, 2009                                                  |   | (Dollars in Thousands) |   |
|                                                               |   |
| Available-for-Sale                                                 |   |
|    U. S. Government sponsored enterprise securities |   | $                      | 18,687 |   |       | $      | 138    |       |   | $      | 18     |   |   | $ | 18,807 |   |
|    U. S. Government securities                      |   |                   | 5,049  |   |       |   | 49     |       |   |   | 1      |   |   |   | 5,097 |   |
|    Preferred stock                                  |   |                   | 68     |   |       |   | 3      |       |   |   | 0      |   |   |   | 71 |   |
|                                                               |   | $                      | 23,804 |   |       | $      | 190    |       |   | $      | 19     |   |   | $ | 23,975 |   |
|                                                               |   |
| Held-to-Maturity                                                   |   |
|    States and political subdivisions                |   | $                      | 44,766 |   |       | $      | 777    |       |   | $      | 0      |   |   | $ | 45,543 |   |
|                                                               |   |
| Restricted Equity Securities (1)                                   |   | $                      | 3,907  |   |       | $      | 0      |       |   | $      | 0      |   |   | $ | 3,907 |   |
|                                                               |   |
|          Total        |   | $                      | 72,477 |   |       | $      | 967    |       |   | $      | 19     |   |   | $ | 73,425 |   |
|                                                               |   |
| December 31, 2008                                                  |   |                   |   |
|                                                               |   |
| Available-for-Sale                                                 |   |
|    U. S. Government sponsored enterprise securities |   | $                      | 8,172  |   |       | $      | 274    |       |   | $      | 0      |   |   | $ | 8,446 |   |
|    U. S. Government securities                      |   |                   | 4,047  |   |       |   | 153    |       |   |   | 0      |   |   |   | 4,200 |   |
|    States and political subdivisions                |   |                   | 1,143  |   |       |   | 20     |       |   |   | 0      |   |   |   | 1,163 |   |
|    Mortgage-backed securities                       |   |                   | 15,117 |   |       |   | 491    |       |   |   | 7      |   |   |   | 15,601 |   |
|    Preferred stock                                  |   |                   | 163    |   |       |   | 0      |       |   |   | 124    |   |   |   | 39 |   |
|                                                               |   | $                      | 28,642 |   |       | $      | 938    |       |   | $      | 131    |   |   | $ | 29,449 |   |
|                                                               |   |
| Held-to-Maturity                                                   |   |
|    States and political subdivisions                |   | $                      | 37,288 |   |       | $      | 924    |       |   | $      | 0      |   |   | $ | 38,212 |   |
|                                                               |   |
| Restricted Equity Securities (1)                                   |   | $                      | 3,907  |   |       | $      | 0      |       |   | $      | 0      |   |   | $ | 3,907 |   |
|                                                               |   |
|          Total        |   | $                      | 69,837 |   |       | $      | 1,862  |       |   | $      | 131    |   |   | $ | 71,568 |   |

----

| Maturities and Yields of Investment Portfolio                       |   |
|---------------------------------------------------------------------|--------|
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   December 31,                                            |   | 2009 |   |   | 2008 |   |   | 2007 |   |
|                                                                |   |   |   |   | Weighted |   |   |   |   |   | Weighted |   |   |   |   |   | Weighted |   |
|                                                                |   | Fair |   |   | Average |   |   | Fair |   |   | Average |   |   | Fair |   |   | Average |   |
|                                                                |   | Value (1) |   |   | Yield (2) |   |   | Value (1) |   |   | Yield (2) |   |   | Value (1) |   |   | Yield (2) |   |
|                                                                |   | (Dollars in Thousands) |   |
| Available-for-Sale                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    U.S. Treasury & Agency Obligations            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Due in one year or less         |   | $ | 8,311 |   |   |   | 3.17 | % |   | $ | 6,149 |   |   |   | 4.44 | % |   | $ | 9,978 |   |   |   | 6.16 | % |
|       Due from one to five years      |   |   | 15,593 |   |   |   | 1.40 | % |   |   | 6,498 |   |   |   | 4.40 | % |   |   | 14,351 |   |   |   | 4.44 | % |
|       Due from five to ten years      |   |   | 0 |   |   |   | 0.00 | % |   |   | 0 |   |   |   | 0.00 | % |   |   | 1,984 |   |   |   | 5.06 | % |
|          Total         |   | $ | 23,904 |   |   |   | 2.01 | % |   | $ | 12,647 |   |   |   | 4.42 | % |   | $ | 26,313 |   |   |   | 5.14 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Tax-exempt Municipals                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Due after ten years             |   | $ | 0 |   |   |   | 0.00 | % |   | $ | 1,163 |   |   |   | 5.22 | % |   | $ | 1,157 |   |   |   | 5.19 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Mortgage Backed Securities                        |   | $ | 0 |   |   |   | 0.00 | % |   | $ | 13,883 |   |   |   | 4.70 | % |   | $ | 15,766 |   |   |   | 4.80 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Collateralized Mortgage Obligations               |   | $ | 0 |   |   |   | 0.00 | % |   | $ | 1,718 |   |   |   | 3.80 | % |   | $ | 2,102 |   |   |   | 4.48 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FRB Stock(3)                                      |   | $ | 588 |   |   |   | 6.00 | % |   | $ | 588 |   |   |   | 6.00 | % |   | $ | 138 |   |   |   | 6.00 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    FHLBB Stock(3)                                    |   | $ | 3,319 |   |   |   | 0.00 | % |   | $ | 3,319 |   |   |   | 2.50 | % |   | $ | 3,319 |   |   |   | 6.50 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Preferred Stock                                   |   | $ | 71 |   |   |   | 0.00 | % |   | $ | 39 |   |   |   | 0.00 | % |   | $ | 1,538 |   |   |   | 8.43 | % |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held-to-Maturity                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Obligations of State & Political Subdivisions |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|       Due in one year or less         |   | $ | 35,864 |   |   |   | 3.31 | % |   | $ | 28,694 |   |   |   | 4.65 | % |   | $ | 29,717 |   |   |   | 5.46 | % |
|       Due from one to five years      |   |   | 4,035 |   |   |   | 5.01 | % |   |   | 3,934 |   |   |   | 5.32 | % |   |   | 1,699 |   |   |   | 6.42 | % |
|       Due from five to ten years      |   |   | 1,483 |   |   |   | 5.59 | % |   |   | 1,414 |   |   |   | 5.86 | % |   |   | 2,290 |   |   |   | 7.81 | % |
|       Due after ten years             |   |   | 3,384 |   |   |   | 8.03 | % |   |   | 3,246 |   |   |   | 8.24 | % |   |   | 605 |   |   |   | 10.81 | % |
|          Total         |   | $ | 44,766 |   |   |   | 3.89 | % |   | $ | 37,288 |   |   |   | 5.08 | % |   | $ | 34,311 |   |   |   | 5.76 | % |

| (1)  Investments classified as available-for-sale are presented at fair value, and investments classified as held-to-maturity |
|------------------------------------------------------------------------------------------------------------------------------------|
|      are presented at book value.                                                                         |
| (2) The yield on Obligations of State and Political Subdivisions is calculated on a tax equivalent basis assuming a 34        |
|      percent tax rate.                                                                                    |
| (3) Required equity purchases for membership in the Federal Reserve System and Federal Home Loan Bank System.                      |

----

|                                           |   | 2009                   |   |   | 2008   |   |
|------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                           |   | (Dollars in Thousands) |   |
|                                           |   |                   |   |   |   |   |
| Buildings and improvements                     |   | $                      | 10,439 |   |   | $      | 10,945 |   |
| Land and land improvements                     |   |                   | 2,572  |   |   |   | 2,707 |   |
| Furniture and equipment                        |   |                   | 6,242  |   |   |   | 5,966 |   |
| Leasehold improvements                         |   |                   | 1,277  |   |   |   | 1,268 |   |
| Capital lease                                  |   |                   | 928    |   |   |   | 928 |   |
| Other prepaid assets                           |   |                   | 14     |   |   |   | 17 |   |
|                                           |   |                   | 21,472 |   |   |   | 21,831 |   |
| Less accumulated depreciation and amortization |   |                   | (7,835 | )      |   |   | (6,842 | ) |
|                                           |   | $                      | 13,637 |   |   | $      | 14,989 |   |

|                                                          |   | Contract or            |   |
|---------------------------------------------------------------|--------|------------------------|--------|
|                                                          |   | --Notional Amount--    |   |
|                                                          |   | 2009                   |   |   | 2008 |   |
|                                                          |   | (Dollars in Thousands) |   |
|                                                          |   |                   |   |   |   |   |
| Unused portions of home equity lines of credit                |   | $                      | 15,557 |   |   | $ | 14,848 |   |
| Other commitments to extend credit                            |   |                   | 26,613 |   |   |   | 25,172 |   |
| Residential construction lines of credit                      |   |                   | 1,671  |   |   |   | 2,187 |   |
| Commercial real estate and other construction lines of credit |   |                   | 12,664 |   |   |   | 2,710 |   |
| Standby letters of credit and commercial letters of credit    |   |                   | 735    |   |   |   | 353 |   |
| Recourse on sale of credit card portfolio                     |   |                   | 391    |   |   |   | 941 |   |
| MPF credit enhancement obligation, net (See Note 17)          |   |                   | 1,486  |   |   |   | 1,438 |   |

|                                                                         |   | 2009                   |   |   | 2008   |   |
|------------------------------------------------------------------------------|--------|------------------------|--------|--------|--------|--------|
|                                                                         |   | (Dollars in Thousands) |   |
| Long-Term Borrowings                                                         |   |                   |   |   |   |   |
| FHLBB term borrowing, 2.13% fixed rate, due January 31, 2011                 |   | $                      | 10,000 |   |   | $      | 0 |   |
| Community Investment Program borrowing, 7.67% fixed rate,                    |   |                   |   |   |   |   |   |   |
|    due November 16, 2012                                      |   |                   | 10     |   |   |   | 10 |   |
|                                                                         |   |                   | 10,010 |   |   |   | 10 |   |
| Overnight Borrowings                                                         |   |                   |   |   |   |   |   |   |
| Federal funds purchased (FHLBB) 0.200% and 0.375% respectively               |   |                   | 3,401  |   |   |   | 12,562 |   |
|           Total Borrowings |   | $                      | 13,411 |   |   | $      | 12,572 |   |

| Balance at December 31, 2008 (book value $7.33 per common share)                                           |   | $      | 35,272,892 |   |
|------------------------------------------------------------------------------------------------------------|--------|--------|------------|--------|
|    Net income                                                                               |   |   | 3,747,862  |   |
|    Issuance of common stock (dividend reinvestment)                                         |   |   | 636,611    |   |
|    Total dividends declared on common stock                                                 |   |   | (2,160,050 | )      |
|    Total dividends declared on preferred stock                                              |   |   | (187,500   | )      |
|    Change in unrealized loss on available-for-sale securities, net of tax                   |   |   | (419,977   | )      |
|        Balance at December 31, 2009 (book value $7.56 per common share) |   | $      | 36,889,838 |   |

|                                      |                   |        |               |              | Minimum |
|-------------------------------------------|------------------------|-------------|--------------------|-------------------|---------|
|                                      |                   |        | Minimum            | To Be Well        |
|                                      |                   |        | For Capital        | Capitalized Under |
|                                      |                   |        | Adequacy           | Prompt Corrective |
|                                      | Actual                 | Purposes:   | Action Provisions: |
|                                      | Amount                 | Ratio  | Amount             | Ratio             | Amount  | Ratio |
|                                      | (Dollars in Thousands) |
| As of December 31, 2009:                  |                   |        |               |              |    |   |
| Total capital (to risk-weighted assets)   |                   |        |               |              |    |   |
|    Consolidated            | $40,326                | 11.57%      | $27,877            | 8.00%             | N/A     | N/A |
|    Bank                    | $40,336                | 11.60%      | $27,811            | 8.00%             | $34,764 | 10.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to risk-weighted assets)  |                   |        |               |              |    |   |
|    Consolidated            | $36,875                | 10.58%      | $13,939            | 4.00%             | N/A     | N/A |
|    Bank                    | $36,885                | 10.61%      | $13,906            | 4.00%             | $20,858 | 6.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to average assets)        |                   |        |               |              |    |   |
|    Consolidated            | $36,875                | 7.50%       | $19,674            | 4.00%             | N/A     | N/A |
|    Bank                    | $36,885                | 7.51%       | $19,643            | 4.00%             | $24,554 | 5.00% |
|                                      |                   |        |               |              |    |   |
| As of December 31, 2008:                  |                   |        |               |              |    |   |
| Total capital (to risk-weighted assets)   |                   |        |               |              |    |   |
|    Consolidated            | $36,765                | 11.04%      | $26,639            | 8.00%             | N/A     | N/A |
|    Community National Bank | $37,355                | 11.25%      | $26,571            | 8.00%             | $33,214 | 10.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to risk-weighted assets)  |                   |        |               |              |    |   |
|    Consolidated            | $33,532                | 10.07%      | $13,319            | 4.00%             | N/A     | N/A |
|    Community National Bank | $34,122                | 10.27%      | $13,285            | 4.00%             | $19,928 | 6.00% |
|                                      |                   |        |               |              |    |   |
| Tier I capital (to average assets)        |                   |        |               |              |    |   |
|    Consolidated            | $33,532                | 7.08%       | $18,948            | 4.00%             | N/A     | N/A |
|    Community National Bank | $34,122                | 7.22%       | $18,917            | 4.00%             | $23,569 | 5.00% |

----

| COMMUNITY BANCORP. |
|--------------------|

| BY: /s/ Stephen P. Marsh               |   | Date:  April 27, 2010 |
|-------------------------------------------------------------------------------------------------------------------|--------|---------------------------------|
|    Stephen P. Marsh, President                                                                     |   |                            |
|    and Chief Executive Officer                                                                     |   |                            |