**EXHIBIT      99.1**

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**OFFICE      OF THE COMPTROLLER OF THE CURRENCY**

**WASHINGTON,      DC 20219**

**FORM      10-QSB**

**EMPIRE      STATE BANK, NATIONAL ASSOCIATION**

| UNITED                STATES                   | 20-0494115                                          |
|------------------------------------------------|-----------------------------------------------------|
| (State                or other jurisdiction of | (I.R.S.                Employer Identification No.) |
| Incorporation                or organization)  |                                                |

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**EMPIRE      STATE BANK, NATIONAL ASSOCIATION**

**FORM      10-QSB**

**FOR      THE QUARTERLY PERIOD ENDED JUNE 30, 2006**

**PART      I - FINANCIAL INFORMATION**

|                                                    |                                                                                                                                      | **Page** |
|---------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------|----------|
| Item                1. Financial Statements (Unaudited) |                                                                                                                                      |
|                                                    |                                                                                                                                      |     |
|                                                    | Consolidated                Balance Sheets at June 30, 2006 and December 31, 2005                                                         | 2        |
|                                                    |                                                                                                                                      |     |
|                                                    | Consolidated                Statements of Income for the Three and Six Months Ended June 30,                2006, and                2005 | 3        |
|                                                    |                                                                                                                                      |     |
|                                                    | Consolidated                Statement of Changes in Stockholders’ Equity                                                            |     |
|                                                    | For                the Six Months Ended June 30, 2006 and 2005                                                                            | 4        |
|                                                    |                                                                                                                                      |     |
|                                                    | Consolidated                Statements of Cash Flows for the Six Months Ended                                                             |     |
|                                                    | June                30, 2006 and 2005                                                                                                     | 5        |
|                                                    |                                                                                                                                      |     |
|                                                    | Notes                to Unaudited Consolidated Financial Statements                                                                       | 6        |
|                                                    |                                                                                                                                      |     |
| Item                2.                                  | Management’s                Discussion and Analysis of Financial Condition and                                                      |     |
|                                                    | Results                of Operations                                                                                                      | 11       |
|                                                    |                                                                                                                                      |     |
| Item                3.                                  | Controls                and Procedures                                                                                                    | 15       |
|                                                    |                                                                                                                                      |     |
|                                                    |                                                                                                                                      |     |
| **PART                11 - OTHER INFORMATION**          |
|                                                    |                                                                                                                                      |     |
|                                                    |                                                                                                                                      |     |
| Item                1.                                  | Legal                Procedures                                                                                                           | 15       |
| Item                2.                                  | Unregistered                Sales of Equity Securities and Use of Proceeds                                                                | 15       |
| Item                3                                   | Defaults                on Senior Securities                                                                                              | 15       |
| Item                4.                                  | Submission                of Matters to a Vote of Security Holders                                                                        | 15       |
| Item                5.                                  | Other                Information                                                                                                          | 15       |
| Item                6.                                  | Exhibits                                                                                                                                  | 16       |
|                                                    | Signatures                                                                                                                                | 17       |

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| **Part              1.** | **Item                1.** |
|--------------------------|----------------------------|

**EMPIRE      STATE BANK, NA**

**BALANCE        SHEET**

**(Unaudited)**

**(In        thousands, except share data)**

|                                                                         |   | June                  30, |   | December                  31, |   |
|------------------------------------------------------------------------------|--------|---------------------------|--------|-------------------------------|--------|
|                                                                         |   | 2006                      |   | 2005                          |   |
| ASSETS                                                                       |   |                      |   |                          |   |
|                                                                         |   |                      |   |                          |   |
| Cash                  and cash equivalents:                                  |   |                      |   |                          |   |
| Cash                  and due from banks                                     |   | $                         | 1,782  |                          | $      | 2,972 |   |
| Federal                  funds sold                                          |   |                      | 7,710  |                          |   | 7,829 |   |
| Total                  cash and cash equivalents                             |   |                      | 9,492  |                          |   | 10,801 |   |
| Certificates                  of deposit at other financial institutions     |   |                      | 2,749  |                          |   | 2,749 |   |
| Securities:                                                                  |   |                      |   |                          |   |   |   |
| Available                  for sale, at fair value                           |   |                      | 8,760  |                          |   | 6,380 |   |
| Real                  estate mortgage loans held for sale                    |   |                      | 342    |                          |   | 679 |   |
| Loans                  receivable, net                                       |   |                      |   |                          |   |   |   |
| Real                  estate mortgage loans                                  |   |                      | 33,253 |                          |   | 22,863 |   |
| Commercial                  and lines of credit                              |   |                      | 10,809 |                          |   | 5,071 |   |
| Home                  equity and consumer loans                              |   |                      | 5,207  |                          |   | 3,577 |   |
| Construction                  loans                                          |   |                      | 3,081  |                          |   | 1,679 |   |
| Deferred                  cost                                               |   |                      | 330    |                          |   | 241 |   |
| Allowance                  for loan losses                                   |   |                      | (156   | )                             |   | (106 | ) |
| Total                  loans receivable, net                                 |   |                      | 52,524 |                          |   | 33,325 |   |
| Accrued                  interest receivable                                 |   |                      | 362    |                          |   | 180 |   |
| Federal                  Reserve Bank stock                                  |   |                      | 358    |                          |   | 378 |   |
| Goodwill                                                                     |   |                      | 581    |                          |   | 581 |   |
| Office                  properties and equipment, net                        |   |                      | 757    |                          |   | 842 |   |
| Prepaid                  expenses                                            |   |                      | 115    |                          |   | 75 |   |
| Other                  assets                                                |   |                      | 116    |                          |   | 63 |   |
| Total                  assets                                                |   | $                         | 76,156 |                          | $      | 56,053 |   |
|                                                                         |   |                      |   |                          |   |   |   |
| LIABILITIES                  AND STOCKHOLDERS’                  EQUITY |   |                      |   |                          |   |   |   |
|                                                                         |   |                      |        |                          |   |   |   |
| Liabilities:                                                                 |   |                      |   |                          |   |   |   |
| Deposits:                                                                    |   |                      |   |                          |   |   |   |
| Non-interest                  bearing                                        |   | $                         | 8,543  |                          | $      | 10,073 |   |
| Interest                  bearing                                            |   |                      | 55,562 |                          |   | 33,304 |   |
| Accrued                  interest payable                                    |   |                      | 92     |                          |   | 43 |   |
| Other                  liabilities                                           |   |                      | 343    |                          |   | 301 |   |
| Total                  liabilities                                           |   |                      | 64,540 |                          |   | 43,721 |   |
|                                                                         |   |                      |   |                          |   |   |   |
| Commitments                  and contingencies                               |   |                      |   |                          |   |   |   |
|                                                                         |   |                      |   |                          |   |   |   |
| Stockholders’                  equity                                  |   |                      |   |                          |   |   |   |
| Capital                  stock (par value $5; 5,000,000 shares authorized;   |   |                      |   |                          |   |   |   |
| 1,719,227                  shares issued at June 30, 2006                    |   |                      |   |                          |   |   |   |
| 1,719,177                  shares issued at December 31, 2005)               |   |                      | 8,596  |                          |   | 8,596 |   |
| Additional                  paid-in-capital                                  |   |                      | 8,282  |                          |   | 8,276 |   |
| Accumulated                  deficit                                         |   |                      | (5,081 | )                             |   | (4,418 | ) |
| Accumulated                  other comprehensive loss                        |   |                      | (181   | )                             |   | (122 | ) |
| Total                  stockholders’ equity                            |   |                      | 11,616 |                          |   | 12,332 |   |
| Total                  liabilities and stockholders’ equity            |   | $                         | 76,156 |                          | $      | 56,053 |   |

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**STATEMENTS        OF OPERATIONS**

**FOR        THE THREE AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005**

**(Unaudited)**

**(In        thousands, except per share data)**

|                                                                         |   | **For                  the Three Months** |      | **For                  the Six Months** |   |
|------------------------------------------------------------------------------|--------|-------------------------------------------|-----------|-----------------------------------------|--------|
|                                                                         |   | **Ended                  June 30,**       |      | **Ended                  June 30,**     |   |
|                                                                         |   | **2006**                                  |      | **2005**                                |   | **2006** |   | **2005** |   |
|                                                                         |   |                                      |      |                                    |   |   |   |   |   |
| Interest                  and dividend income:                               |   |                                      |      |                                    |   |   |   |   |   |
| Loans                                                                        |   | $                                         | 793       |                                    | $      | 231 |   | $ | 1,410 |   | $ | 357 |   |
| Securities                                                                   |   |                                      | 99        |                                    |   | 79 |   |   | 182 |   |   | 158 |   |
| Fed                  Funds and other earning assets                          |   |                                      | 150       |                                    |   | 78 |   |   | 288 |   |   | 163 |   |
| Total                  interest and dividend income                          |   |                                      | 1,042     |                                    |   | 388 |   |   | 1,880 |   |   | 678 |   |
|                                                                         |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Interest                  expense:                                           |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Deposits                                                                     |   |                                      | 533       |                                    |   | 113 |   |   | 907 |   |   | 202 |   |
| Total                  interest expense                                      |   |                                      | 533       |                                    |   | 113 |   |   | 907 |   |   | 202 |   |
|                                                                         |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Net                  interest income                                         |   |                                      | 509       |                                    |   | 275 |   |   | 973 |   |   | 476 |   |
|                                                                         |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Provision                  for loan losses                                   |   |                                      | 18        |                                    |   | 19 |   |   | 50 |   |   | 35 |   |
| Net                  interest income after provision for loan losses         |   |                                      | 491       |                                    |   | 256 |   |   | 923 |   |   | 441 |   |
|                                                                         |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Non-interest                  income:                                        |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Service                  charges and fees                                    |   |                                      | 22        |                                    |   | 49 |   |   | 41 |   |   | 62 |   |
| Net                  gain on sales of real estate mortgage                   |   |                                      |           |                                    |   |  |   |   |   |   |   |   |   |
| loans                  held for sale                                         |   |                                      | 53        |                                    |   | 89 |   |   | 114 |   |   | 113 |   |
| Other                                                                        |   |                                      | 2         |                                    |   | 1 |   |   | 4 |   |   | 9 |   |
| Total                  non-interest income                                   |   |                                      | 77        |                                    |   | 139 |   |   | 159 |   |   | 184 |   |
|                                                                         |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Non-interest                  expense:                                       |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Compensation                  and benefits                                   |   |                                      | 434       |                                    |   | 459 |   |   | 922 |   |   | 842 |   |
| Occupancy                  and equipment                                     |   |                                      | 168       |                                    |   | 148 |   |   | 320 |   |   | 273 |   |
| Data                  processing service fees                                |   |                                      | 35        |                                    |   | 26 |   |   | 68 |   |   | 51 |   |
| Other                                                                        |   |                                      | 229       |                                    |   | 212 |   |   | 435 |   |   | 379 |   |
| Total                  non-interest expense                                  |   |                                      | 866       |                                    |   | 845 |   |   | 1,745 |   |   | 1,545 |   |
|                                                                         |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Net                  (loss) before income taxes                              |   |                                      | (298      | )                                       |   | (450 | ) |   | (663 | ) |   | (920 | ) |
| Income                  tax expense                                          |   |                                      | -         |                                    |   | - |   |   | - |   |   | - |   |
| Net                  (loss)                                                  |   | $                                         | (298      | )                                       | $      | (450 | ) | $ | (663 | ) | $ | (920 | ) |
|                                                                         |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Other                  comprehensive income (loss):                          |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Net                  unrealized gain/(loss) on available-for-sale securities |   |                                      | (32       | )                                       |   | 13 |   |   | (59 | ) |   | (24 | ) |
| Comprehensive                  income (loss)                                 |   | $                                         | (330      | )                                       | $      | (437 | ) | $ | (722 | ) | $ | (944 | ) |
|                                                                         |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Weighted                  average:                                           |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Common                  shares                                               |   |                                      | 1,719,190 |                                    |   | 1,719,161 |   |   | 1,719,183 |   |   | 1,719,144 |   |
| (Loss)                  per common share:                                    |   |                                      |      |                                    |   |   |   |   |   |   |   |   |   |
| Basic                                                                        |   | $                                         | (0.17     | )                                       | $      | (0.26 | ) | $ | (0.39 | ) | $ | (0.54 | ) |
| Basic                  & diluted                                         |   | $                                         | (0.17     | )                                       | $      | (0.26 | ) | $ | (0.39 | ) | $ | (0.54 | ) |

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**EMPIRE        STATE BANK, NA**

**STATEMENT          OF CHANGES IN STOCKHOLDERS’ EQUITY**

**FOR            THE SIX MONTHS ENDED JUNE 30, 2006 and JUNE 30, 2005**

**(Unaudited)**

**(In                dollars except, share data)**

|                                                   |   |                                 |      |       |   |           |   |            |    | **Accumulated**   |   |      |          |
|--------------------------------------------------------|--------|--------------------------------------|-----------|------------|--------|----------------|--------|-----------------|---------|-------------------|--------|-----------|---------------|
|                                                   |   |                                 |      |       |   | **Additional** |   |            |    | **Other**         |   |      |          |
|                                                   |   | **Capital                    Stock** |      |       |   | **Paid-In**    |   | **Accumulated** |    | **Comprehensive** |   |      |          |
|                                                   |   | **Shares**                           |      | **Amount** |   | **Capital**    |   | **Deficit**     |    | **(Loss)**        |   | **Total** |          |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |
| Balance                    at December 31, 2004        |   |                                 | 1,719,127 |       | $      | 8,596          |   | $               | 8,192   |              | $      | (2,880    | )             | $ | (54 | ) | $ | 13,854 |   |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Exercise                    of 50 stock warrants       |   |                                 | 50        |       |   | —        |   |            | 1       |              |   | —   |  #  |   | — |   |   | 1 |   |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Issuance                    of stock options           |   |                                 | —   |       |   | —        |   |            | 69      |              |   | —   |          |   | — |   |   | 69 |   |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Comprehensive                    loss:                 |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Net                    loss for the period             |   |                                 | —   |       |   | —        |   |            | — |              |   | (920      | )             |   | — |   |   | (920 | ) |
| Net                    unrealized (loss) on available- |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| for-sale                    securities                 |   |                                 | —   |       |   | —        |   |            | — |              |   | —   |          |   | (24 | ) |   | (24 | ) |
| Total                    comprehensive loss            |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   | (944 | ) |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Balance                    at June 30, 2005            |   |                                 | 1,719,177 |       | $      | 8,596          |   | $               | 8,262   |              | $      | (3,800    | )             | $ | (78 | ) | $ | 12,980 |   |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Balance                    at December 31, 2005        |   |                                 | 1,719,177 |       | $      | 8,596          |   | $               | 8,276   |              | $      | (4,418    | )             | $ | (122 | ) | $ | 12,332 |   |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Exercise                    of 50 stock warrants       |   |                                 | 50        |       |   | —        |   |            | 1       |              |   | —   |          |   | — |   |   | 1 |   |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Vested                    stock options, net           |   |                                 | —   |       |   | —        |   |            | 5       |              |   | —   |          |   | — |   |   | 5 |   |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Comprehensive                    loss:                 |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Net                    loss for the period             |   |                                 | —   |       |   | —        |   |            | — |              |   | (663      | )             |   | — |   |   | (663 | ) |
| Net                    unrealized (loss) on available- |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| for-sale                    securities                 |   |                                 | —   |       |   | —        |   |            | — |              |   | —   |          |   | (59 | ) |   | (59 | ) |
| Total                    comprehensive loss            |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   | (722 | ) |
|                                                   |   |                                 |      |       |   |           |   |            |    |              |   |      |          |   |   |   |   |   |   |
| Balance                    at June 30, 2006            |   |                                 | 1,719,227 |       | $      | 8,596          |   | $               | 8,282   |              | $      | (5,081    | )             | $ | (181 | ) | $ | 11,616 |   |

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**EMPIRE        STATE BANK, NA**

**STATEMENT        OF CASH FLOWS**

**(Unaudited)**

|                                                                                 |   | For                  the Six Months   |    |
|--------------------------------------------------------------------------------------|--------|---------------------------------------|---------|
|                                                                                 |   |  Ended                  June 30, |    |
|                                                                                 |   | 2006                                  |    | 2005 |   |
|                                                                                 |   | (In                  thousands)       |    |
|                                                                                 |   |                                  |    |   |   |
| Cash                  flows from operating activities:                               |   |                                  |    |   |   |
| Net                  loss for period                                                 |   | $                                     | (663    | ) | $ | (920 | ) |
| Adjustments                  to reconcile net losses to net cash                     |   |                                  |    |   |   |   |   |
| provided                  by operating activities:                                   |   |                                  |    |   |   |   |   |
| Provision                  for loan losses                                           |   |                                  | 50      |   |   | 36 |   |
| Depreciation                  expense                                                |   |                                  | 100     |   |   | 95 |   |
| Amortization                  of deferred fees, discounts and premiums, net          |   |                                  | (5      | ) |   | 1 |   |
| Net                  originations on loans held for sale                             |   |                                  | 450     |   |   | (1,230 | ) |
| Net                  gain on sale of real estate mortgage loans held for sale        |   |                                  | (114    | ) |   | (113 | ) |
| Changes                  in assets and liabilities                                   |   |                                  |    |   |   |   |   |
| Increase                  in other assets                                            |   |                                  | (275    | ) |   | (50 | ) |
| Increase                  in accrued expenses and other liabilities                  |   |                                  | 91      |   |   | 35 |   |
| Net                  cash used in operating activities                               |   |                                  | (366    | ) |   | (2,146 | ) |
| Cash                  flows from investing activities:                               |   |                                  |    |   |   |   |   |
| Maturity                  of cerfificates of deposit at other financial institutions |   |                                  | 3,249   |   |   | - |   |
| Purchase                  of cerfificates of deposit at other financial institutions |   |                                  | (3,249  | ) |   | - |   |
| Purchase                  of available-for-sale securities                           |   |                                  | (2,999  | ) |   | (1,096 | ) |
| Proceeds                  from principal payments and maturities of securities       |   |                                  | 565     |   |   | 3,410 |   |
| Net                  disbursements for loan originations                             |   |                                  | (19,249 | ) |   | (12,738 | ) |
| Redemption                  of Federal Reserve Bank stock                            |   |                                  | 20      |   |   | 34 |   |
| Leasehold                  improvements and acquisitions of capital assets           |   |                                  | (15     | ) |   | (29 | ) |
| Net                  cash used in investing activities                               |   |                                  | (21,678 | ) |   | (10,419 | ) |
| Cash                  flows from financing activities:                               |   |                                  |    |   |   |   |   |
| Net                  increase in deposits                                            |   |                                  | 20,728  |   |   | 9,728 |   |
| Proceeds                  from stock issuance                                        |   |                                  | 1       |   |   | 1 |   |
| Issuance                  of stock options                                           |   |                                  | 6       |   |   | 69 |   |
| Net                  cash provided by financing activities                           |   |                                  | 20,735  |   |   | 9,798 |   |
|                                                                                 |   |                                  |    |   |   |   |   |
| Net                  increase in cash and cash equivalents                           |   |                                  | (1,309  | ) |   | (2,767 | ) |
| Cash                  and cash equivalents at beginning of period                    |   |                                  | 10,801  |   |   | 11,103 |   |
|                                                                                 |   |                                  |    |   |   |   |   |
| Cash                  and cash equivalents at end of period                          |   | $                                     | 9,492   |   | $ | 8,336 |   |
|                                                                                 |   |                                  |    |   |   |   |   |
| Supplemental                  cash flow information                                  |   |                                  |    |   |   |   |   |
| Interest                  paid                                                       |   | $                                     | 858     |   | $ | 197 |   |
| Income                  taxes paid                                                   |   | $                                     | — |   | $ | — |   |

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**EMPIRE      STATE BANK, NA**

**NOTES      TO UNAUDITED FINANCIAL STATEMENTS**

| **Note              1.** | **Commencement                of Operations** |
|--------------------------|-----------------------------------------------|

| **Note              2.** | **Basis                of Presentation** |
|--------------------------|------------------------------------------|

| **Note              3.** | **Summary                of Significant Accounting                Policies** |
|--------------------------|------------------------------------------------------------------------------|

**Warrants**

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**Stock      Options**

|                                                    |   | Option                  Award Dates  |   |                      |   |
|---------------------------------------------------------|--------|-------------------------------------------|--------|---------------------------|--------|
|                                                    |   | May                  3,                   |   | Nov.                  15, |   | Dec.                  20, |   | Jan.                  12, |   | Weighted |   |
|                                                    |   | 2005                                      |   | 2005                      |   | 2005 |   | 2006 |   | Average |   |
|                                                    |   |                                      |   |                      |   |   |   |   |   |   |   |
| Risk                  free interest rate                |   |                                      | 3.90   | %                         |   | 4.51 | % |   | 4.40 | % |   | 4.35 | % |   | 4.00 | % |
|                                                    |   |                                      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Expected                  option life                   |   |                                      | 5.0    |                      |   | 5.0 |   |   | 5.0 |   |   | 5.0 |   |   | 5.0 |   |
|                                                    |   |                                      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Expected                  stock price volatility        |   |                                      | 0.10   | %                         |   | 0.10 | % |   | 0.10 | % |   | 0.10 | % |   | 0.10 | % |
|                                                    |   |                                      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Dividend                  yield                         |   |                                      | 0.00   | %                         |   | 0.00 | % |   | 0.00 | % |   | 0.00 | % |   | 0.00 | % |
|                                                    |   |                                      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |
| Weighted                  average fair value of options |   |                                      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |
| granted                                                 |   | $                                         | 1.00   |                      | $      | 1.57 |   | $ | 1.57 |   | $ | 2.20 |   | $ | 1.13 |   |
|                                                    |   |                                      |   |                      |   |   |   |   |   |   |   |   |   |   |   |   |

----

|                                     |   |   |    |     |   | Weighted                     |   |      |    |
|------------------------------------------|--------|--------|---------|----------|--------|------------------------------|--------|-----------|---------|
|                                     |   |   |    | Weighted |   | Average                      |   | Aggregate |    |
|                                     |   |   |    | Average  |   | Remaining                    |   | Intrinsic |    |
|                                     |   |   |    | Exercise |   | Contractual                  |   | Value     |    |
|                                     |   | Shares |    | Price    |   | Term                  (yrs.) |   | ($,000)   |    |
| Outstanding                  at          |   |   |    |     |   |                         |   |      |    |
| January                  1, 2006         |   |   | 173,000 |     | $      | 10.47                        |   |      | 9.1     |   |   | 5 |   |
| Granted                                  |   |   | 5,000   |     |   | 10.00                        |   |      | 10.0    |   |   | — |   |
| Exercised                                |   |   | — |     |   | -                            |   |      | — |   |   | — |   |
| Forfieited                  or expired   |   |   | 21,250  |     |   | 10.50                        |   |      | 9.0     |   |   | — |   |
| Outstanding                  at          |   |   |    |     |   |                         |   |      |    |   |   |   |   |
| June                  30, 2006           |   |   | 156,750 |     | $      | 10.47                        |   |      | 9.2     |   |   | — |   |
|                                     |   |   |    |     |   |                         |   |      |    |   |   |   |   |
| Options                  exerciseable at |   |   |    |     |   |                         |   |      |    |   |   |   |   |
| June                  30, 2006           |   |   | 75,100  |     | $      | 10.47                        |   |      | 9.0     |   |   | — |   |
|                                     |   |   |    |     |   |                         |   |      |    |   |   |   |   |

**Earnings      (Loss) Per Share **

**Income      Taxes**

----

**Securities**

**Loans      Held for Sale**

**Loans**

**Classification      of Assets.**

----

**Allowance      for Loan Losses**

**Cash      Flows**

| **Note              4.** | **Commitments                and Contingencies** |
|--------------------------|--------------------------------------------------|

**Legal      Proceedings**

**Operating      Lease Commitments**

**Off-Balance      Sheet Financial Instruments**

----

**Item      2.**

**Management’s      Discussion and Analysis of Financial Condition and Results of      Operations**

**Forward-Looking      Statements**

**Holding      Company Formation**

----

**Comparison      of Financial Condition at June 30, 2006 and December 31,      2005**

----

** **

|                                                                   |   | **For                  the Three Months Ended June                  30,**         |    |
|-------------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------------------|---------|
|                                                              |   | **2006**                                                                                                   |    |  **2005**   |   |
|                                                              |   |                                                                                                                      |    |  ** ** |   | **Average** |   |    |   |  ** ** |   | **Average** |   |
|                                                              |   | **Average**                                                                                                               |    |    |   | **Yield                  /** |   |  **Average** |   |    |   | **Yield                  /** |   |
|                                                              |   | **Balance**                                                                                                               |    |  **Interest** |   | **Cost** |   |  **Balance** |   |  **Interest** |   | **Cost** |   |
|                                                              |   |                                                                                                                      |    |    |   |   |   |    |   |    |   |   |   |
|                                                                   |   |  **(Dollars                  in thousands)**                                                                         |    |
| **Assets**                                                        |   |                                                                                                                      |    |    |   |   |   |    |   |    |   |   |   |
| Interest-earning                  assets:                         |   |                                                                                                                      |    |    |   |   |   |    |   |    |   |   |   |
| Loans                                                             |   | $                                                                                                                         | 45,285  |   | $ | 793 |   |   | 7.02 | % | $ | 15,494 |   | $ | 231 |   |   | 5.98 | % |
| Fed                  Funds                                        |   |                                                                                                                      | 9,276   |   |   | 114 |   |   | 4.93 | % |   | 9,851 |   |   | 72 |   |   | 2.93 | % |
| Certificates                  of deposit                          |   |                                                                                                                      | 2,343   |   |   | 30 |   |   | 5.14 | % |   | — |   |   | — |   |   | - |   |
| FRB                  Stock                                        |   |                                                                                                                      | 367     |   |   | 6 |   |   | 6.56 | % |   | 412 |   |   | 6 |   |   | 6.01 | % |
| Securities-available                  for sale                    |   |                                                                                                                      | 8,944   |   |   | 99 |   |   | 4.44 | % |   | 9,098 |   |   | 79 |   |   | 3.48 | % |
| Total                  interest-earning assets                    |   |                                                                                                                      | 66,215  |   | $ | 1,042 |   |   | 6.31 | % |   | 34,855 |   | $ | 388 |   |   | 4.46 | % |
|                                                              |   |                                                                                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                  for loan losses                        |   |                                                                                                                      | (139    | ) |   |   |   |   |   |   |   | (54 | ) |   |   |   |   |   |   |
| Cash                  & Due from banks                        |   |                                                                                                                      | 1,913   |   |   |   |   |   |   |   |   | 1,519 |   |   |   |   |   |   |   |
| Other                  Non-interest earning assets                |   |                                                                                                                      | 1,884   |   |   |   |   |   |   |   |   | 1,762 |   |   |   |   |   |   |   |
| Total                  assets                                     |   | $                                                                                                                         | 69,873  |   |   |   |   |   |  |   | $ | 38,082 |   |   |   |   |   |   |   |
|                                                              |   |                                                                                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                  and Stockholders’ Equity**   |   |                                                                                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                  liabilities:                    |   |                                                                                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                  accounts                                     |   | $                                                                                                                         | 629     |   | $ | 1 |   |   | 0.64 | % | $ | 598 |   | $ | 1 |   |   | 0.34 | % |
| Money                  Market accounts                            |   |                                                                                                                      | 28,822  |   |   | 332 |   |   | 4.62 | % |   | 14,104 |   |   | 87 |   |   | 2.50 | % |
| Regular                  savings accounts                         |   |                                                                                                                      | 3,509   |   |   | 24 |   |   | 2.74 | % |   | 1,435 |   |   | 3 |   |   | 0.84 | % |
| Certificates                  of Deposit                          |   |                                                                                                                      | 15,604  |   |   | 176 |   |   | 4.52 | % |   | 2,980 |   |   | 22 |   |   | 2.96 | % |
| Total                  interest-bearing deposits                  |   |                                                                                                                      | 48,564  |   |   | 533 |   |   | 4.40 | % |   | 19,117 |   |   | 113 |   |   | 2.38 | % |
|                                                              |   |                                                                                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings                                                        |   |                                                                                                                      | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Total                  interest-bearing liabilities               |   | $                                                                                                                         | 48,564  |   | $ | 533 |   |   | 4.40 | % | $ | 19,117 |   | $ | 113 |   |   | 2.38 | % |
|                                                              |   |                                                                                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                  liabilities                 |   |                                                                                                                      | 9,514   |   |   |   |   |   |   |   |   | 5,808 |   |   |   |   |   |   |   |
| Total                  liabilities                                |   |                                                                                                                      | 58,078  |   |   |   |   |   |  |   |   | 24,925 |   |   |   |   |   |   |   |
|                                                              |   |                                                                                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’                  equity                       |   |                                                                                                                      | 11,795  |   |   |   |   |   |   |   |   | 13,157 |   |   |   |   |   |   |   |
| Total                  liabilities and stockholders’ equity |   | $                                                                                                                         | 69,873  |   |   |   |   |   |   |   | $ | 38,082 |   |   |   |   |   |   |   |
| Net                  interest income                              |   |                                                                                                                      |    |   | $ | 509 |   |   |   |   |   |   |   | $ | 275 |   |   |   |   |
|                                                              |   |                                                                                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                  interest rate spread (1)                 |   |                                                                                                                      |         |   |   |   |   |   | 1.91 | % |   |   |   |   |   |   |   | 2.08 | % |
| Net                  interest margin (2)                          |   |                                                                                                                      |         |   |   |   |   |   | 3.07 | % |   |   |   |   |   |   |   | 3.17 | % |
| Net                  interest-earning assets (3)                  |   | $                                                                                                                         | 17,651  |   |   |   |   |   |   |   | $ | 15,738 |   |   |   |   |   |   |   |
| Ratio                  of average interest-earning assets to      |   |                                                                                                                      |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| average                  interest-bearing liabilities             |   |                                                                                                                      |    |   |   |   |   |   | 136.35 | % |   |   |   |   |   |   |   | 182.33 | % |
|                                                              |   |                                                                                                                      |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

| (3) | Net                  interest-earning assets represents total interest-earning assets                  less                  total interest-bearing liabilities. |
|-----|------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                                 |   | **For                the Six Months Ended June                30,**        |    |
|-----------------------------------------------------------------|--------|---------------------------------------------------------------------------------------------------------------|---------|
|                                                            |   |                                                                                                          |    |    |   |   |   |    |   |    |   |   |   |
|                                                            |   | **2006**                                                                                       |    |  **2005**   |   |
|                                                            |   |                                                                                                          |    |  ** ** |   | **Average** |   |    |   |  ** ** |   | **Average** |   |
|                                                            |   | **Average**                                                                                                   |    |    |   | **Yield                /** |   |  **Average** |   |    |   | **Yield                /** |   |
|                                                            |   | **Balance**                                                                                                   |    |  **Interest** |   | **Cost** |   |  **Balance** |   |  **Interest** |   | **Cost** |   |
|                                                            |   |                                                                                                          |    |    |   |   |   |    |   |    |   |   |   |
|                                                                 |   |  **(Dollars                in thousands)**                                                               |    |
| **Assets**                                                      |   |                                                                                                          |    |    |   |   |   |    |   |    |   |   |   |
| Interest-earning                assets:                         |   |                                                                                                          |    |    |   |   |   |    |   |    |   |   |   |
| Loans                                                           |   | $                                                                                                             | 40,974  |   | $ | 1,410 |   |   | 6.94 | % | $ | 11,866 |   | $ | 357 |   |   | 6.07 | % |
| Fed                Funds & other investments                |   |                                                                                                          | 9,145   |   |   | 215 |   |   | 4.74 | % |   | 11,362 |   |   | 150 |   |   | 2.66 | % |
| Certificates                of deposit                          |   |                                                                                                          | 2,541   |   |   | 62 |   |   | 4.92 | % |   | — |   |   | — |   |   | — |   |
| FRB                Stock                                        |   |                                                                                                          | 372     |   |   | 11 |   |   | 5.96 | % |   | 422 |   |   | 13 |   |   | 6.05 | % |
| Securities-available                for sale                    |   |                                                                                                          | 8,332   |   |   | 182 |   |   | 4.40 | % |   | 9,138 |   |   | 158 |   |   | 3.49 | % |
| Total                interest-earning assets                    |   |                                                                                                          | 61,364  |   | $ | 1,880 |   |   | 6.18 | % |   | 32,788 |   | $ | 678 |   |   | 4.17 | % |
|                                                            |   |                                                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance                for loan losses                        |   |                                                                                                          | (126    | ) |   |   |   |   |   |   |   | (46 | ) |   |   |   |   |   |   |
| Cash                & Due from banks                        |   |                                                                                                          | 1,906   |   |   |   |   |   |   |   |   | 1,522 |   |   |   |   |   |   |   |
| Other                Non-interest earning assets                |   |                                                                                                          | 1,942   |   |   |   |   |   |   |   |   | 1,755 |   |   |   |   |   |   |   |
| Total                assets                                     |   | $                                                                                                             | 65,086  |   |   |   |   |   |  |   | $ | 36,019 |   |   |   |   |   |   |   |
|                                                            |   |                                                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| **Liabilities                and Stockholders’ Equity**   |   |                                                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing                liabilities:                    |   |                                                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| NOW                accounts                                     |   | $                                                                                                             | 643     |   | $ | 1 |   |   | 0.33 | % | $ | 720 |   | $ | 1 |   |   | 0.30 | % |
| Money                Market accounts                            |   |                                                                                                          | 23,985  |   |   | 521 |   |   | 4.38 | % |   | 13,096 |   |   | 161 |   |   | 2.48 | % |
| Regular                savings accounts                         |   |                                                                                                          | 3,638   |   |   | 50 |   |   | 2.77 | % |   | 1,143 |   |   | 5 |   |   | 0.88 | % |
| Certificates                of Deposit                          |   |                                                                                                          | 15,068  |   |   | 335 |   |   | 4.48 | % |   | 2,477 |   |   | 35 |   |   | 2.85 | % |
| Total                interest-bearing deposits                  |   |                                                                                                          | 43,334  |   |   | 907 |   |   | 4.22 | % |   | 17,436 |   |   | 202 |   |   | 2.34 | % |
|                                                            |   |                                                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Borrowings                                                      |   |                                                                                                          | — |   |   | — |   |   | — |   |   | — |   |   | — |   |   | — |   |
| Total                interest-bearing liabilities               |   | $                                                                                                             | 43,334  |   | $ | 907 |   |   | 4.22 | % | $ | 17,436 |   | $ | 202 |   |   | 2.34 | % |
|                                                            |   |                                                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest-bearing                liabilities                 |   |                                                                                                          | 9,751   |   |   |   |   |   |   |   |   | 5,195 |   |   |   |   |   |   |   |
| Total                liabilities                                |   |                                                                                                          | 53,085  |   |   |   |   |   |  |   |   | 22,631 |   |   |   |   |   |   |   |
|                                                            |   |                                                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Stockholders’                equity                       |   |                                                                                                          | 12,001  |   |   |   |   |   |   |   |   | 13,388 |   |   |   |   |   |   |   |
| Total                liabilities and stockholders’ equity |   | $                                                                                                             | 65,086  |   |   |   |   |   |   |   | $ | 36,019 |   |   |   |   |   |   |   |
| Net                interest income                              |   |                                                                                                          |    |   | $ | 973 |   |   |   |   |   |   |   | $ | 476 |   |   |   |   |
|                                                            |   |                                                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average                interest rate spread (1)                 |   |                                                                                                          |         |   |   |   |   |   | 1.96 | % |   |   |   |   |   |   |   | 1.83 | % |
| Net                interest margin (2)                          |   |                                                                                                          |         |   |   |   |   |   | 3.20 | % |   |   |   |   |   |   |   | 2.93 | % |
| Net                interest-earning assets (3)                  |   | $                                                                                                             | 18,030  |   |   |   |   |   |   |   | $ | 15,352 |   |   |   |   |   |   |   |
| Ratio                of average interest-earning assets to      |   |                                                                                                          |         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| average                interest-bearing liabilities             |   |                                                                                                          |    |   |   |   |   |   | 141.61 | % |   |   |   |   |   |   |   | 188.04 | % |
|                                                            |   |                                                                                                          |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |

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

----

**Results      of Operations for the Quarters Ended **
**June      30, 2006 and June 30, 2005**

***General.***

***Interest      Income.***

***Interest      Expense.***

***Net      Interest Income.***

***Provision      for Loan Losses***

----

***Non-interest      Income.***
** **

***Non-interest      Expense.***

***Income      Tax Expense.***

**Results      of Operations for the Six Months Ended June 30, 2006 and June 30,      2005**

***General.***
** **

***Interest      Income.***

----

***Interest      Expense.***

***Net      Interest Income.***

***Non-Interest      Income.***

***Non-Interest      Expense.***

**Liquidity      and Capital Resources**

** **

----

**Recent      Accounting Standards**

| **Item              3.** | **Controls                and Procedures** |
|--------------------------|--------------------------------------------|

**PART      II**

| **Item              1.** | **Legal                Proceedings** |
|--------------------------|--------------------------------------|

| **Item              2.** | **Unregistered                Sales of Securities and Use of Proceeds** |
|--------------------------|-------------------------------------------------------------------------|

| **Item              3.** | **Defaults                on Senior Securities** |
|--------------------------|--------------------------------------------------|

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

----

| **Item              5.** | **Other                Information** |
|--------------------------|--------------------------------------|

| **Item              6.** | **Exhibits** |
|--------------------------|--------------|

|                                |                                                                                                                                 | **Reference                  to Previous Filing** |
|-------------------------------------|--------------------------------------------------------------------------------------------------------------------------------------|---------------------------------------------------|
| **Exhibit                  Number** | **Document**                                                                                                                         | **If                  Applicable**                |
|                                |                                                                                                                                 |                                              |
| 3(1)                                | Certificate                  of Incorporation                                                                                        | *                                                 |
|                                |                                                                                                                                 |                                              |
| 3(11)                               | Amended                  and Restated Bylaws                                                                                         | *                                            |
|                                |                                                                                                                                 |                                              |
| 4                                   | Form                  of Stock Certificate                                                                                           | *                                                 |
|                                |                                                                                                                                 |                                              |
| 10.1                                | Employment                  Agreement dated September 23, 2004 Between                  the Bank and Anthony P. Costa.               | **                                                |
|                                |                                                                                                                                 |                                              |
| 10.2                                | Employment                  Agreement dated September 23, 2004 Between                  the Bank and Philip Guarnieri                | **                                                |
|                                |                                                                                                                                 |                                              |
| 31.1                                | Certification                  of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002 |                                              |
|                                |                                                                                                                                 |                                              |
| 31.2                                | Certification                  of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley                  Act of 2002 |                                              |
|                                |                                                                                                                                 |                                              |
| 32.1                                | Certification                  of Chief Executive Officer Pursuant to Section 906 of the Sarbanes-Oxley                  Act of 2002 |                                              |
|                                |                                                                                                                                 |                                              |
| 32.2                                | Certification                  of Chief Financial Officer Pursuant to Section 906 of the Sarbanes-Oxley                  Act of 2002 |                                              |

----

**SIGNATURES**

|                                           |                                                             |                                   |
|------------------------------------------------|------------------------------------------------------------------|----------------------------------------|
|                                           | Empire                State Bank, National Association           |
|                                      |                                                        |                              |
| Date:              August 11, 2006   | By:                                                    | /s/ Anthony              P. Costa |
|                                           | Anthony              P. Costa, Chairman, Chief Executive Officer |
|                                           |                                                             |

|                                             |                                                     |                                                    |
|--------------------------------------------------|----------------------------------------------------------|---------------------------------------------------------|
|                                        |                                                |                                               |
| Date:                August 11, 2006   | By:                                            | /s/ Arthur                W.                Budich |
|                                             | Arthur                W. Budich, Chief Financial Officer |
|                                             |                                                     |

----

**EXHIBIT      31.1**

|   | a) | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Evaluated                the effectiveness of the small business issuer’s disclosure controls and                procedures and presented in this report our conclusions about the                effectiveness of the disclosure controls and procedures as of the                end of                the period covered by this report based on such evaluation;                and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Disclosed                in this report any change in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonable likely                to                materially affect, the registrant’s internal control over financial                reporting; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | The                small business issuer’s other certifying officers and I have disclosed,                based on our most recent evaluation of internal control over financial                reporting, to the registrant’s auditors and the audit committee of the                registrant’s board of directors (or persons performing the equivalent                function): |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | All                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the small business issuer’s ability                to record, process, summarize and report financial information;                and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Any                fraud, whether material or not material, that involves management                or other                employees who have a significant role in the registrant’s internal                controls over financial reporting. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/                  Anthony P Costa Anthony                  P. Costa |  Date:                    August                  11, 2006   |
|------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
| Chairman                and Chief Executive Officer               |                                                                                  |
|                                                                   |                                                                                  |

----

**EXHIBIT      31.2**

|   | a) | Designed                such disclosure controls and procedures, or caused such disclosure                controls and procedures to be designed under our supervision, to                ensure                that material information relating to the registrant, including its                consolidated subsidiaries, is made known to us by others within those                entities, particularly during the period in which this report is                being                prepared; |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Evaluated                the effectiveness of the small business issuer’s disclosure controls and                procedures and presented in this report our conclusions about the                effectiveness of the disclosure controls and procedures as of the                end of                the period covered by this report based on such evaluation;                and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | c) | Disclosed                in this report any change in the registrant’s internal control over                financial reporting that occurred during the registrant’s most recent                fiscal quarter (the registrant’s fourth fiscal quarter in the case of an                annual report) that has materially affected, or is reasonable likely                to                materially affect, the registrant’s internal control over financial                reporting; and |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | 2) | The                small business issuer’s other certifying officers and I have disclosed,                based on our most recent evaluation of internal control over financial                reporting, to the registrant’s auditors and the audit committee of the                registrant’s board of directors (or persons performing the equivalent                function): |
|--------|----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | a) | All                significant deficiencies and material weaknesses in the design or                operation of internal control over financial reporting which are                reasonably likely to adversely affect the small business issuer’s ability                to record, process, summarize and report financial information;                and |
|--------|----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | b) | Any                fraud, whether material or not material, that involves management                or other                employees who have a significant role in the registrant’s internal                controls over financial reporting. |
|--------|----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| /s/                  Arthur W. BudichArthur                  W. Budich |  Date:                    August                  11, 2006   |
|------------------------------------------------------------------------|---------------------------------------------------------------------------------------|
| Chief                Financial Officer                            |                                                                                  |
|                                                                   |                                                                                  |

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**EXHIBIT      32.1**

|   | (1) | The                report fully complies with the requirements of Section 13(a) or 15(d)                of                the Securities Exchange Act of 1934;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The                information contained in the Report fairly presents, in all material                respects, the financial condition and results of operations of the                Company. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                 |                                                    |                                       |
|----------------------------------------------------------------------|---------------------------------------------------------|--------------------------------------------|
|                                                                 |                                                    |
|                                                            |                                               |                                  |
| Date:                     August 11, 2006   |                                                    | /s/ Anthony                  P. Costa |
|                                                                      | Anthony                  P. Costa                       |
|                                                                 | Chairman                    and Chief Executive Officer |

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**EXHIBIT      32.2**

|   | (1) | The                report fully complies with the requirements of Section 13(a) or 15(d)                of                the Securities Exchange Act of 1934;                and |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (2) | The                information contained in the Report fairly presents, in all material                respects, the financial condition and results of operations of the                Company. |
|--------|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                                                                 |                                         |                                                        |
|----------------------------------------------------------------------|----------------------------------------------|-------------------------------------------------------------|
|                                                                 |                                         |
|                                                            |                                    |                                                   |
| Date:                     August 11, 2006   |                                         | /s/ Arthur                  W.                  Budich |
|                                                                      | Arthur                  W. Budich            |
|                                                                 | Chief                      Financial Officer |

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