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

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

| Massachusetts                                                 |   | 20-4840562                          |
|---------------------------------------------------------------|--------|-------------------------------------|
| (State or other jurisdiction ofincorporation or organization) |   | (I.R.S. EmployerIdentification No.) |
|                                                          |   |
| 70 Center Street, Chicopee, Massachusetts                     |   | 01013                               |
| (Address of principal executive offices)                      |   | (Zip Code)                          |

| Title of each class              | Name of each exchange on which registered |
|----------------------------------|-------------------------------------------|
| Common Stock, no par value  | NASDAQ Global Market                      |

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

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| PART I     |                                                                         |   |     |   |
|------------|------------------------------------------------------------------------------|--------|----------|--------|
|       |                                                                         |   | Page No. |   |
|       |                                                                         |   |     |   |
| Item 1.    | Business                                                                     |   |     | 2      |   |
|       |                                                                         |   |     |   |   |
| Item 1A.   | Risk Factors                                                                 |   |     | 19     |   |
|       |                                                                         |   |     |   |   |
| Item 1B.   | Unresolved Staff Comments                                                    |   |     | 22     |   |
|       |                                                                         |   |     |   |   |
| Item 2.    | Properties                                                                   |   |     | 22     |   |
|       |                                                                         |   |     |   |   |
| Item 3.    | Legal Proceedings                                                            |   |     | 23     |   |
|       |                                                                         |   |     |   |   |
| Item 4.    | (Removed and Reserved).                                                      |   |     |   |   |
|       |                                                                         |   |     |   |   |
| PART II    |                                                                         |   |     |   |   |
|       |                                                                         |   |     |   |   |
| Item 5.    | Market for the Registrant’s Common Equity, Related Stockholder Matters |   |     |   |   |
|       | and Issuer Purchases of Equity Securities                                    |   |     | 23     |   |
|       |                                                                         |   |     |   |   |
| Item 6.    | Selected Financial Data                                                      |   |     | 25     |   |
|       |                                                                         |   |     |   |   |
| Item 7.    | Management's Discussion and Analysis of Financial                            |   |     |   |   |
|       | Condition and Results of Operations                                          |   |     | 27     |   |
|       |                                                                         |   |     |   |   |
| Item 7A.   | Quantitative and Qualitative Disclosures about Market Risk                   |   |     | 53     |   |
|       |                                                                         |   |     |   |   |
| Item 8.    | Financial Statements and Supplementary Data                                  |   |     | 53     |   |
|       |                                                                         |   |     |   |   |
| Item 9.    | Changes In and Disagreements with Accountants on                             |   |     |   |   |
|       | Accounting and Financial Disclosure                                          |   |     | 53     |   |
|       |                                                                         |   |     |   |   |
| Item 9A.   | Controls and Procedures                                                      |   |     | 53     |   |
|       |                                                                         |   |     |   |   |
| Item 9B.   | Other Information                                                            |   |     | 53     |   |
|       |                                                                         |   |     |   |   |
| PART III   |                                                                         |   |     |   |   |
|       |                                                                         |   |     |   |   |
| Item 10.   | Directors, Executive Officers and Corporate Governance                       |   |     | 54     |   |
|       |                                                                         |   |     |   |   |
| Item 11.   | Executive Compensation                                                       |   |     | 54     |   |
|       |                                                                         |   |     |   |   |
| Item 12.   | Security Ownership of Certain Beneficial Owners and                          |   |     |   |   |
|       | Management and Related Stockholder Matters                                   |   |     | 54     |   |
|       |                                                                         |   |     |   |   |
| Item 13.   | Certain Relationships and Related Transactions, and Director Independence    |   |     | 55     |   |
|       |                                                                         |   |     |   |   |
| Item 14.   | Principal Accountant Fees and Services                                       |   |     | 55     |   |
|       |                                                                         |   |     |   |   |
| PART IV    |                                                                         |   |     |   |   |
|       |                                                                         |   |     |   |   |
| Item 15.   | Exhibits and Financial Statement Schedules                                   |   |     | 56     |   |
|       |                                                                         |   |     |   |   |
| SIGNATURES |                                                                         |   |     | 58     |   |

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PART I

Item 1. Business.

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| Name              | Principal Position                                                                                                                                |
|-------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|
|              |                                                                                                                                              |
| William J. Wagner | President and Chief Executive Officer of Chicopee Bancorp and Chicopee Savings Bank                                                               |
|              |                                                                                                                                              |
| Guida R. Sajdak   | Senior Vice President, Chief Financial Officer and Treasurer of Chicopee Bancorp and Senior Vice President and Treasurer of Chicopee Savings Bank |
|              |                                                                                                                                              |
| Russell J. Omer   | Executive Vice President of Chicopee Bancorp and Executive Vice President, Lending, of Chicopee Savings Bank                                      |

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Item 1A.  Risk Factors.

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Item 1B.  Unresolved Staff Comments.

Item 2. Properties.

|      |                                                                            | Location                   | Year Opened | Lease Expires |
|-----------|---------------------------------------------------------------------------------|----------------------------|-------------|---------------|
| Owned     |                                                                            |                       |        |          |
|      | Main Office:                                                                    |                       |        |          |
|      |                                                                            | 70 Center Street           | 1973        |          |
|      |                                                                            | Chicopee, MA 01013         |        |          |
|      | Branch Offices:                                                                 |                       |        |          |
|      |                                                                            | 39 Morgan Road             | 2005        |          |
|      |                                                                            | West Springfield, MA 01089 |        |          |
|      |                                                                            |                       |        |          |
|      |                                                                            | 569 East Street            | 1976        |          |
|      |                                                                            | Chicopee, MA 01020         |        |          |
|      |                                                                            |                       |        |          |
|      |                                                                            | 435 Burnett Road           | 1990        |          |
|      |                                                                            | Chicopee, MA 01020         |        |          |
|      |                                                                            |                       |        |          |
|      |                                                                            | 219/229 Exchange Street    | 2009/1998   |          |
|      |                                                                            | Chicopee, MA 01013         |        |          |
|      |                                                                            |                       |        |          |
| Leased    |                                                                            |                       |        |          |
|      |                                                                            | 599 Memorial Drive         | 1977        | 2012 (1)      |
|      |                                                                            | Chicopee, MA 01020         |        |          |
|      |                                                                            |                       |        |          |
|      |                                                                            | 477A Center Street         | 2002        | 2022          |
|      |                                                                            | Ludlow, MA 01056           |        |          |
|      |                                                                            |                       |        |          |
|      |                                                                            | 350 Palmer Road            | 2009        | 2027          |
|      |                                                                            | Ware, MA 01082             |        |          |
|      |                                                                            |                       |        |          |
|      |                                                                            | 32 Willimansett Street     | 2008        | 2027 (2)      |
|      |                                                                            | South Hadley, MA 01075     |        |          |
|      |                                                                            |                       |        |          |
| (1)  | Chicopee Savings Bank has an option to renew for five years.                    |                       |
| (2)  | The lease is for the land only, the building is owned by Chicopee Savings Bank. |

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Item 3. Legal Proceedings.

PART II

Item 5.  Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.

|           |   | High   |   |   | Low    |   |   |   | High           |   |   | Low    |   |
|----------------|--------|--------|--------|--------|--------|--------|--------|--------|----------------|--------|--------|--------|--------|
|           |   |   |   |   |   |   |   |   |           |   |   |   |   |
| 2010           |   |   |   |   |   |   | 2009   |   |           |   |   |   |   |
| First Quarter  |   | $      | 12.95  |   |   | $      | 11.85  |   | First Quarter  |   | $      | 11.90  |   |   | $ | 10.16 |   |
| Second Quarter |   |   | 13.10  |   |   |   | 11.01  |   | Second Quarter |   |   | 13.53  |   |   |   | 11.75 |   |
| Third Quarter  |   |   | 11.45  |   |   |   | 10.79  |   | Third Quarter  |   |   | 13.67  |   |   |   | 12.74 |   |
| Fourth Quarter |   |   | 12.73  |   |   |   | 11.25  |   | Fourth Quarter |   |   | 13.57  |   |   |   | 12.11 |   |

|   | (a) | As of March 3, 2011, the Company had approximately 715 registered holders of record of the Company’s common stock. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------|

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|                  |   |         |    |   |          |   |   | (c)               |   |   | (d)                    |   |
|-----------------------|--------|--------------|---------|--------|---------------|--------|--------|-------------------|--------|--------|------------------------|--------|
|                  |   |         |    |   |          |   |   | Total Number of   |   |   | Maximum Number         |   |
|                  |   |         |    |   |          |   |   | Shares            |   |   | (or Approximate        |   |
|                  |   | (a)          |    |   | (b)           |   |   | (or Units)        |   |   | Dollar Value) of       |   |
|                  |   | Total Number |    |   | Average Price |   |   | Purchased as Part |   |   | Shares (or Units) that |   |
|                  |   | of Shares    |    |   | Paid Per      |   |   | of Publicly       |   |   | May Yet Be             |   |
|                  |   | (or Units)   |    |   | Share         |   |   | Announced Plans   |   |   | Purchased Under the    |   |
| Period                |   | Purchased    |    |   | (or Unit)     |   |   | or Programs (1)   |   |   | Plans or Programs      |   |
|                  |   |         |    |   |          |   |   |              |   |   |                   |   |
| October 1 -31, 2010   |   |         | 21,000  |   |          | $      | 11.41  |              |   |   | 176,207                |   |   |   | 142,745 |   |
|                  |   |         |    |   |          |   |   |              |   |   |                   |   |   |   |   |   |
| November 1 - 30, 2010 |   |         | 146,345 |   |          |   | 12.24  |              |   |   | 3,600                  |   |   |   | 299,404 |   |
|                  |   |         |    |   |          |   |   |              |   |   |                   |   |   |   |   |   |
| December 1 -31, 2010  |   |         | 44,500  |   |          |   | 12.35  |              |   |   | 48,100                 |   |   |   | 254,904 |   |
| Total                 |   |         | 211,845 |   |          | $      | 12.18  |              |   |   |                   |   |   |   |   |   |

| (1) | On November 23, 2010, the Company announced that it had completed its fourth stock repurchase program for the purchase of 318,952 shares. On November 19, 2010 the Company announced that its Board of Directors authorized a fifth stock repurchase program for the purchase of up to 303,004 shares of the Company’s common stock or approximately 5% of its outstanding common stock. During the month of November, 142,745 shares were repurchased to complete the fourth buyback and 3,600 were repurchased to commence the fifth buyback. As of December 31, 2010, the Company can repurchase an additional 254,904 shares to complete the fifth buyback. The Company intends to purchase its shares from time to time at prevailing prices in the open market, in block transactions, in privately negotiated transactions, or under rule 10b-5(1) repurchase plans. The repurchased shares will be held by the Company as treasury stock and will be available for general corporate purposes. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

Item 6.  Selected Financial Data.

|                                     |   | At December 31 |    |
|------------------------------------------|--------|----------------|---------|
|                                     |   | 2010           |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                     |   | (In Thousands) |    |
| Selected Financial Data:                 |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |
| Total assets                             |   | $              | 573,704 |   |   | $ | 544,150 |   |   | $ | 527,699 |   |   | $ | 463,456 |   |   | $ | 450,045 |   |
| Cash and cash equivalents                |   |           | 35,873  |   |   |   | 20,075 |   |   |   | 23,100 |   |   |   | 23,521 |   |   |   | 11,528 |   |
| Loans, net                               |   |           | 430,307 |   |   |   | 424,655 |   |   |   | 416,076 |   |   |   | 379,868 |   |   |   | 368,968 |   |
| Securities available-for-sale            |   |           | 362     |   |   |   | 503 |   |   |   | 5,268 |   |   |   | 7,681 |   |   |   | 7,861 |   |
| Securities held-to-maturity              |   |           | 69,713  |   |   |   | 62,983 |   |   |   | 49,662 |   |   |   | 27,324 |   |   |   | 37,411 |   |
| Deposits                                 |   |           | 391,937 |   |   |   | 365,498 |   |   |   | 334,767 |   |   |   | 324,971 |   |   |   | 311,571 |   |
| Advances from the Federal Home Loan Bank |   |           | 71,615  |   |   |   | 63,675 |   |   |   | 76,567 |   |   |   | 17,774 |   |   |   | 15,256 |   |
| Total stockholders' equity               |   |           | 91,882  |   |   |   | 94,172 |   |   |   | 94,017 |   |   |   | 104,299 |   |   |   | 108,446 |   |
| Nonperforming assets                     |   |           | 6,756   |   |   |   | 4,924 |   |   |   | 3,185 |   |   |   | 1,014 |   |   |   | 1,711 |   |

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|                                            |   | For the Years Ended December 31, |   |
|-------------------------------------------------|--------|----------------------------------|--------|
|                                            |   | 2010                             |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                            |   | (In Thousands)                   |   |
|                                            |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected Operating Data:                        |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest and dividend income                    |   | $                                | 24,857 |   |   | $ | 24,514 |   |   | $ | 25,783 |   |   | $ | 26,305 |   |   | $ | 22,759 |   |
| Interest expense                                |   |                             | 8,016  |   |   |   | 9,107 |   |   |   | 11,189 |   |   |   | 11,783 |   |   |   | 9,207 |   |
| Net interest and dividend income                |   |                             | 16,841 |   |   |   | 15,407 |   |   |   | 14,594 |   |   |   | 14,522 |   |   |   | 13,552 |   |
| Provision for loan losses                       |   |                             | 1,223  |   |   |   | 897 |   |   |   | 315 |   |   |   | 223 |   |   |   | 440 |   |
| Net interest income after provision             |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   for loan losses                     |   |                             | 15,618 |   |   |   | 14,510 |   |   |   | 14,279 |   |   |   | 14,299 |   |   |   | 13,112 |   |
| Non-interest income                             |   |                             | 2,626  |   |   |   | 1,312 |   |   |   | 2,001 |   |   |   | 2,521 |   |   |   | 1,631 |   |
| Non-interest expense                            |   |                             | 18,009 |   |   |   | 18,045 |   |   |   | 15,882 |   |   |   | 14,202 |   |   |   | 17,854 |   |
|                                            |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before provision for income taxes |   |                             | 235    |   |   |   | (2,223 | ) |   |   | 398 |   |   |   | 2,618 |   |   |   | (3,111 | ) |
| Income tax (benefit) expense                    |   |                             | (230   | ) |   |   | (627 | ) |   |   | 376 |   |   |   | 1,018 |   |   |   | (577 | ) |
|     Net income (loss)       |   | $                                | 465    |   |   | $ | (1,596 | ) |   | $ | 22 |   |   | $ | 1,600 |   |   | $ | (2,534 | ) |
|                                            |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share                       |   | $                                | 0.08   |   |   | $ | (0.28 | ) |   | $ | - |   |   | $ | 0.24 |   |   | $ | (0.37 | ) |

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|                                              |   | At or For the Years Ended December 31, |   |
|---------------------------------------------------|--------|----------------------------------------|--------|
|                                              |   | 2010                                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Selected Operating Ratios and Other Data:         |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Performance Ratios:                               |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Average yield on interest-earning assets (1)      |   |                                   | 4.96   | % |   |   | 5.03 | % |   |   | 5.53 | % |   |   | 6.13 | % |   |   | 5.85 | % |
| Average rate paid on interest-bearing liabilities |   |                                   | 1.91   | % |   |   | 2.26 | % |   |   | 3.02 | % |   |   | 3.63 | % |   |   | 2.96 | % |
| Average interest rate spread (2)                  |   |                                   | 3.05   | % |   |   | 2.77 | % |   |   | 2.51 | % |   |   | 2.50 | % |   |   | 2.89 | % |
| Net interest margin (3)                           |   |                                   | 3.40   | % |   |   | 3.18 | % |   |   | 3.15 | % |   |   | 3.40 | % |   |   | 3.49 | % |
| Ratio of interest-earning assets to               |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest-bearing liabilities                      |   |                                   | 122.61 | % |   |   | 121.58 | % |   |   | 126.71 | % |   |   | 132.66 | % |   |   | 125.29 | % |
| Non-interest expenses as a percent of             |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| average assets                                    |   |                                   | 3.24   | % |   |   | 3.39 | % |   |   | 3.19 | % |   |   | 3.10 | % |   |   | 4.28 | % |
| Return on average assets                          |   |                                   | 0.08   | % |   |   | (0.30 | %) |   |   | - |   |   |   | 0.35 | % |   |   | (0.61 | %) |
| Return on average equity                          |   |                                   | 0.49   | % |   |   | (1.69 | %) |   |   | 0.02 | % |   |   | 1.48 | % |   |   | (3.57 | %) |
| Ratio of average equity to average assets         |   |                                   | 17.04  | % |   |   | 17.76 | % |   |   | 19.85 | % |   |   | 23.57 | % |   |   | 17.02 | % |
| Efficiency ratio (4)                              |   |                                   | 91.59  | % |   |   | 102.74 | % |   |   | 94.56 | % |   |   | 87.01 | % |   |   | 117.18 | % |
|                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Regulatory Capital Ratios:                        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total capital to risk-weighted assets             |   |                                   | 20.7   | % |   |   | 23.4 | % |   |   | 23.6 | % |   |   | 28.6 | % |   |   | 28.7 | % |
| Tier 1 capital to risk-weighted assets            |   |                                   | 19.7   | % |   |   | 22.4 | % |   |   | 22.8 | % |   |   | 27.7 | % |   |   | 27.8 | % |
| Tier 1 capital to average assets                  |   |                                   | 16.1   | % |   |   | 17.4 | % |   |   | 18.4 | % |   |   | 22.7 | % |   |   | 24.4 | % |
|                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Asset Quality Ratios:                             |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Nonperforming loans as a                          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| percent of total loans                            |   |                                   | 1.49   | % |   |   | 1.13 | % |   |   | 0.69 | % |   |   | 0.26 | % |   |   | 0.46 | % |
| Nonperforming assets as a                         |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| percent of total assets                           |   |                                   | 1.18   | % |   |   | 0.90 | % |   |   | 0.60 | % |   |   | 0.22 | % |   |   | 0.38 | % |
| Allowance for loan losses as a percent            |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| of total loans                                    |   |                                   | 1.02   | % |   |   | 0.95 | % |   |   | 0.79 | % |   |   | 0.80 | % |   |   | 0.78 | % |
| Allowance for loan losses as a percent of         |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| nonperforming loans and troubled debt             |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| restructurings                                    |   |                                   | 68.49  | % |   |   | 84.17 | % |   |   | 114.30 | % |   |   | 303.35 | % |   |   | 169.96 | % |
| Net loans charged-off to average interest-        |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| earning loans                                     |   |                                   | 0.20   | % |   |   | 0.04 | % |   |   | 0.01 | % |   |   | 0.01 | % |   |   | 0.04 | % |
|                                              |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Other Data:                                       |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Banking offices at end of year                    |   |                                   | 9      |   |   |   | 9 |   |   |   | 8 |   |   |   | 7 |   |   |   | 7 |   |

| (1)    |   | Municipal securities income and net interest income are presented on a tax equivalent basis using a tax rate of 41%. The tax                         |
|--------|--------|------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   | equivalent adjustment is deducted from the tax equivalent net interest income to agree to the amount reported on the income statement.               |
| (2)    |   | Tax equivalent net interest rate spread represents the difference between the weighted average yield on interest-earning assets                      |
|   |   | and the weighted average cost of interest-bearing liabilities.                                                                                       |
| (3)    |   | Tax equivalent net interest margin represents tax equivalent net interest income divided by total average interest-earning assets.                   |
| (4)    |   | The efficiency ratio represents the ratio of non-interest expenses divided by the sum of tax equivalent net interest income and non-interest income. |
|   |   | This ratio excludes gains (losses) on sales of investment securities, property, loans and other, net. At December 31, 2010 the ratio is calculated   |
|   |   | as follows (in thousands):                                                                                                                           |

|   | Non-interest expenses                                                                                          |   | $      | 18,009 |   |   |
|--------|----------------------------------------------------------------------------------------------------------------|--------|--------|--------|--------|--------|
|   | Tax equivalent net interest income                                                                             |   | $      | 17,524 |   |   |
|   | Non-interest income                                                                                            |   |   | 2,626  |   |   |
|   |      Add back:                                                                        |   |   |   |   |   |
|   |           Loan sales and servicing, net                      |   |   | (365   | )      |   |
|   |           Net gain on sales of securities available-for-sale |   |   | (158   | )      |   |
|   |           Other than temporary impairment charge             |   |   | 13     |   |   |
|   |           Loss on sale of other real estate owned            |   |   | 22     |   |   |
|   |    Total income included in calculation                                                         |   | $      | 19,662 |   |   |
|   | Non-interest expenses divided by total income                                                                  |   |   | 91.59  | %      |   |

----

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.

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|   | · | increasing our commercial relationships in our expanding market area; |
|--------|--------|-----------------------------------------------------------------------|

|   | · | increasing our deposit market share in our expanding market area; |
|--------|--------|-------------------------------------------------------------------|

|   | · | increasing our sale of non-deposit investment products; |
|--------|--------|---------------------------------------------------------|

|   | · | improving operating efficiency and cost control; and |
|--------|--------|------------------------------------------------------|

|   | · | applying disciplined underwriting practices to maintain the high quality of our loan portfolio. |
|--------|--------|-------------------------------------------------------------------------------------------------|

----

----

|                                     |   | At December 31,        |    |
|------------------------------------------|--------|------------------------|---------|
|                                     |   | 2010                   |    |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                     |   |                   |    |   | Percent |   |   |   |   |   | Percent |   |   |   |   |   | Percent |   |   |   |   |   | Percent |   |   |   |   |   | Percent |   |
|                                     |   | Amount                 |    |   | of Total |   |   | Amount |   |   | of Total |   |   | Amount |   |   | of Total |   |   | Amount |   |   | of Total |   |   | Amount |   |   | of Total |   |
|                                     |   | (Dollars In Thousands) |    |
|                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate loans:                       |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                  |   | $                      | 132,670 |   |   | 30.6 | % |   | $ | 139,937 |   |   | 32.7 | % |   | $ | 157,208 |   |   | 37.6 | % |   | $ | 147,771 |   |   | 38.7 | % |   | $ | 136,602 |   |   | 36.8 | % |
| Commercial                               |   |                   | 162,107 |   |   | 37.4 | % |   |   | 147,255 |   |   | 34.4 | % |   |   | 134,085 |   |   | 32.0 | % |   |   | 121,253 |   |   | 31.7 | % |   |   | 121,628 |   |   | 32.8 | % |
| Home equity                              |   |                   | 29,933  |   |   | 6.9 | % |   |   | 29,320 |   |   | 6.9 | % |   |   | 27,184 |   |   | 6.5 | % |   |   | 22,704 |   |   | 5.9 | % |   |   | 21,081 |   |   | 5.7 | % |
| Total real estate loans                  |   |                   | 324,710 |   |   | 74.9 | % |   |   | 316,512 |   |   | 74.0 | % |   |   | 318,477 |   |   | 76.1 | % |   |   | 291,728 |   |   | 76.3 | % |   |   | 279,311 |   |   | 75.3 | % |
| Construction loans:                      |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential                              |   |                   | 6,428   |   |   | 1.5 | % |   |   | 9,192 |   |   | 2.1 | % |   |   | 8,431 |   |   | 2.0 | % |   |   | 11,827 |   |   | 3.1 | % |   |   | 14,970 |   |   | 4.0 | % |
| Commercial                               |   |                   | 26,643  |   |   | 6.1 | % |   |   | 29,121 |   |   | 6.9 | % |   |   | 33,198 |   |   | 7.9 | % |   |   | 28,567 |   |   | 7.5 | % |   |   | 26,743 |   |   | 7.2 | % |
| Total construction loans                 |   |                   | 33,071  |   |   | 7.6 | % |   |   | 38,313 |   |   | 9.0 | % |   |   | 41,629 |   |   | 9.9 | % |   |   | 40,394 |   |   | 10.6 | % |   |   | 41,713 |   |   | 11.2 | % |
| Total real estate and construction loans |   |                   | 357,781 |   |   | 82.5 | % |   |   | 354,825 |   |   | 83.0 | % |   |   | 360,106 |   |   | 86.0 | % |   |   | 332,122 |   |   | 86.9 | % |   |   | 321,024 |   |   | 86.5 | % |
| Consumer loans                           |   |                   | 3,165   |   |   | 0.7 | % |   |   | 4,390 |   |   | 1.0 | % |   |   | 4,045 |   |   | 1.0 | % |   |   | 4,111 |   |   | 1.1 | % |   |   | 3,647 |   |   | 1.0 | % |
| Commercial loans                         |   |                   | 72,847  |   |   | 16.8 | % |   |   | 68,552 |   |   | 16.0 | % |   |   | 54,255 |   |   | 13.0 | % |   |   | 45,815 |   |   | 12.0 | % |   |   | 46,348 |   |   | 12.5 | % |
| Total loans                              |   |                   | 433,793 |   |   | 100.0 | % |   |   | 427,767 |   |   | 100.0 | % |   |   | 418,406 |   |   | 100.0 | % |   |   | 382,048 |   |   | 100.0 | % |   |   | 371,019 |   |   | 100.0 | % |
| Net deferred loan origination costs      |   |                   | 945     |   |   |   |   |   |   | 965 |   |   |   |   |   |   | 1,003 |   |   |   |   |   |   | 896 |   |   |   |   |   |   | 857 |   |   |   |   |
| Allowance for loan losses                |   |                   | (4,431  | ) |   |   |   |   |   | (4,077 | ) |   |   |   |   |   | (3,333 | ) |   |   |   |   |   | (3,076 | ) |   |   |   |   |   | (2,908 | ) |   |   |   |
|                                     |   |                   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Loans, net                               |   | $                      | 430,307 |   |   |   |   |   | $ | 424,655 |   |   |   |   |   | $ | 416,076 |   |   |   |   |   | $ | 379,868 |   |   |   |   |   | $ | 368,968 |   |   |   |   |

----

|                             |   | Real Estate    |    |   |         |   |   |       |   |   |     |   |   | Total  |   |
|----------------------------------|--------|----------------|---------|--------|--------------|--------|--------|------------|--------|--------|----------|--------|--------|--------|--------|
|                             |   | Mortgage       |    |   | Construction |   |   | Commercial |   |   | Consumer |   |   | Loans  |   |
|                             |   | (In Thousands) |    |
| Amounts due:                     |   |           |    |   |         |   |   |       |   |   |     |   |   |   |   |
| One year or less                 |   | $              | 1,003   |   |         | $      | 17,379 |       |   | $      | 42,581   |   |   | $      | 261    |   |   | $ | 61,224 |   |
| More than one year to five years |   |           | 10,432  |   |         |   | 15,692 |       |   |   | 23,135   |   |   |   | 2,580  |   |   |   | 51,839 |   |
| More than five years             |   |           | 313,275 |   |         |   | -      |       |   |   | 7,131    |   |   |   | 324    |   |   |   | 320,730 |   |
|                             |   |           |    |   |         |   |   |       |   |   |     |   |   |   |   |   |   |   |   |   |
| Total amount due                 |   | $              | 324,710 |   |         | $      | 33,071 |       |   | $      | 72,847   |   |   | $      | 3,165  |   |   | $ | 433,793 |   |

|                    |   | Due After December 31, 2010 |   |
|-------------------------|--------|-----------------------------|--------|
|                    |   | Fixed                       |   |   | Adjustable |   |   | Total |   |
|                    |   | (In Thousands)              |   |
|                    |   |                        |   |   |   |   |   |   |   |
| Real estate loans       |   | $                           | 28,770 |   |   | $ | 265,004 |   |   | $ | 293,774 |   |
| Construction            |   |                        | 10,897 |   |   |   | 4,795 |   |   |   | 15,692 |   |
| Commercial              |   |                        | 19,650 |   |   |   | 10,616 |   |   |   | 30,266 |   |
| Consumer                |   |                        | 15,543 |   |   |   | 17,294 |   |   |   | 32,837 |   |
|                    |   |                        |   |   |   |   |   |   |   |   |   |   |
|   Total loans |   | $                           | 74,860 |   |   | $ | 297,709 |   |   | $ | 372,569 |   |

----

|                                   |   | At December 31, |   |
|----------------------------------------|--------|-----------------|--------|
|                                   |   | 2010            |   |   | 2009 |   |   | 2008 |   |
|                                   |   | Amortized       |   |   | Fair |   |   | Amortized |   |   | Fair |   |   | Amortized |   |   | Fair |   |
|                                   |   | Cost            |   |   | Value |   |   | Cost |   |   | Value |   |   | Cost |   |   | Value |   |
|                                   |   | (In Thousands)  |   |
|                                   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Available-for-sale securities          |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Marketable equity securities1     |   | $               | 319    |   |   | $ | 362 |   |   | $ | 402 |   |   | $ | 503 |   |   | $ | 7,449 |   |   | $ | 5,268 |   |
| Total available-for-sale securities    |   | $               | 319    |   |   | $ | 362 |   |   | $ | 402 |   |   | $ | 503 |   |   | $ | 7,449 |   |   | $ | 5,268 |   |
|                                   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Held-to-maturity securities            |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Debt securities of U.S. Government     |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   sponsored enterprises      |   | $               | -      |   |   | $ | - |   |   | $ | 1,999 |   |   | $ | 1,999 |   |   | $ | 27,164 |   |   | $ | 27,189 |   |
| U.S. Treasury securities               |   |            | 30,817 |   |   |   | 30,816 |   |   |   | 43,118 |   |   |   | 43,117 |   |   |   | 11,997 |   |   |   | 12,000 |   |
| Corporate and industrial revenue bonds |   |            | 23,348 |   |   |   | 23,348 |   |   |   | 12,109 |   |   |   | 12,109 |   |   |   | 4,060 |   |   |   | 4,060 |   |
| Certificates of deposit                |   |            | 11,725 |   |   |   | 11,725 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Collateralized mortgage obligations    |   |            | 3,823  |   |   |   | 4,023 |   |   |   | 5,757 |   |   |   | 5,905 |   |   |   | 6,441 |   |   |   | 6,424 |   |
| Total held-to-maturity securities      |   | $               | 69,713 |   |   | $ | 69,912 |   |   | $ | 62,983 |   |   | $ | 63,130 |   |   | $ | 49,662 |   |   | $ | 49,673 |   |
|                                   |   |            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total securities                       |   | $               | 70,032 |   |   | $ | 70,274 |   |   | $ | 63,385 |   |   | $ | 63,633 |   |   | $ | 57,111 |   |   | $ | 54,941 |   |

----

| Industry               |   | Fair Value onDate of Write-Down                                                                                                        |   |   | OTTI Loss                                                                              |   | # of securities |   | # of companies |   | % of fair value |   | % of loss |   | Impairment severity |
|------------------------|--------|----------------------------------------------------------------------------------------------------------------------------------------|--------|--------|----------------------------------------------------------------------------------------|--------|-----------------|--------|----------------|--------|-----------------|--------|-----------|--------|---------------------|
| Energy                 | $      | 645                                                                                                                                    |   | $      |  334                                                                              |   | 13              |   | 7              |   | 26%             |   | 24%       |   | 52%                 |
| Materials              |   |                      366      |   |   |             246            |   | 7               |   | 4              |   | 15%             |   | 18%       |   | 67%                 |
| Industrial             |   |                      293      |   |   |             176            |   | 9               |   | 3              |   | 12%             |   | 13%       |   | 60%                 |
| Financial              |   |                      398      |   |   |             282            |   | 11              |   | 5              |   | 16%             |   | 20%       |   | 71%                 |
| Consumer discretionary |   |                      149      |   |   |               95 |   | 2               |   | 2              |   | 6%              |   | 7%        |   | 64%                 |
| Utilities              |   |                      230      |   |   |               92 |   | 4               |   | 3              |   | 9%              |   | 7%        |   | 40%                 |
| Health care            |   |                      176      |   |   |               86 |   | 4               |   | 2              |   | 7%              |   | 6%        |   | 49%                 |
| Telecommunciation      |   |                       85 |   |   |               42 |   | 2               |   | 1              |   | 3%              |   | 3%        |   | 49%                 |
| Consumer staples       |   |                      110      |   |   |               32 |   | 3               |   | 2              |   | 4%              |   | 2%        |   | 29%                 |
| Information technology |   |                       23 |   |   |               18 |   | 1               |   | 1              |   | 1%              |   | 1%        |   | 78%                 |
|                   | $      |  2,475                                                                                                                            |   | $      | 1,403                                                                                  |   | 56              |   | 30             |   | 100%            |   | 100%      |   |                |

|                                   |   |                   |   |     |          |   | More than One Year |         |     | More than Five Years |   |     | More than Ten |     |   |   |     |   |     |
|----------------------------------------|--------|------------------------|--------|----------|---------------|--------|--------------------|--------------|----------|----------------------|--------|----------|---------------|----------|--------|--------|----------|--------|----------|
|                                   |   | Less than One Year     |   |     | to Five Years |   |               | to Ten Years |     |                 | Years  |     |          | Total    |   |
|                                   |   |                   |   | Weighted |          |   |               |         | Weighted |                 |   |     |          | Weighted |   |   |     |   | Weighted |   |   |   |   | Weighted |   |
|                                   |   | Carrying               |   | Average  |          |   | Carrying           |         | Average  |                 |   | Carrying |          | Average  |   |   | Carrying |   | Average  |   |   | Carrying |   | Average |   |
|                                   |   | Value                  |   | Yield    |          |   | Value              |         | Yield    |                 |   | Value    |          | Yield    |   |   | Value    |   | Yield    |   |   | Value |   | Yield |   |
|                                   |   | (Dollars in Thousands) |   |
|                                   |   |                   |   |     |          |   |               |         |     |                 |   |     |          |     |   |   |     |   |     |   |   |   |   |   |   |
| Held-to-maturity securities            |   |                   |   |     |          |   |               |         |     |                 |   |     |          |     |   |   |     |   |     |   |   |   |   |   |   |
| U.S. Treasury securities               |   | $                      | 30,817 |     | 0.12          | %      |               | $            | -        |                 | -      |     |          | $        | -      |   | -        |   |     | $ | - |   | - |   |   | $ | 30,817 |   | 0.12 | % |
| Corporate and industrial revenue bonds |   |                   | -      |     | -             |   |               |         | 3,243    |                 | 5.23   | %        |          |     | 8,300  |   | 4.47     | %      |     |   | 11,805 |   | 4.85 | % |   |   | 23,348 |   | 4.77 | % |
| Certificates of deposit                |   |                   | 11,725 |     | 1.00          | %      |               |         | -        |                 | -      |     |          |     | -      |   | -        |   |     |   | - |   | - |   |   |   | 11,725 |   | 1.00 | % |
| Collateralized mortgage obligations    |   |                   | -      |     | -             |   |               |         | -        |                 | -      |     |          |     | 3,823  |   | 4.58     | %      |     |   | - |   | - |   |   |   | 3,823 |   | 4.58 | % |
| Total held-to-maturity securities      |   | $                      | 42,542 |     | 0.36          | %      |               | $            | 3,243    |                 | 5.23   | %        |          | $        | 12,123 |   | 4.51     | %      |     | $ | 11,805 |   | 4.85 | % |   | $ | 69,713 |   | 2.07 | % |

----

|                    |   | December 31,   |    |
|-------------------------|--------|----------------|---------|
|                    |   | 2010           |    |   | 2009 |   |   | 2008 |   |
|                    |   | (In Thousands) |    |
| Demand                  |   | $              | 48,302  |   |   | $ | 42,629 |   |   | $ | 30,811 |   |
| Savings                 |   |           | 44,215  |   |   |   | 42,875 |   |   |   | 40,780 |   |
| Money market            |   |           | 66,218  |   |   |   | 55,293 |   |   |   | 47,608 |   |
| NOW                     |   |           | 14,572  |   |   |   | 18,466 |   |   |   | 14,702 |   |
| Certificates of deposit |   |           | 218,630 |   |   |   | 206,235 |   |   |   | 200,866 |   |
| Total deposits          |   | $              | 391,937 |   |   | $ | 365,498 |   |   | $ | 334,767 |   |

|                          |   |                   |    |   | Weighted |   |
|-------------------------------|--------|------------------------|---------|--------|----------|--------|
|                          |   |                   |    |   | Average  |   |
| Maturity Period               |   | Amount                 |    |   | Rate     |   |
|                          |   | (Dollars in Thousands) |    |
|                          |   |                   |    |   |     |   |
| Three months or less          |   | $                      | 11,939  |   |     | 1.69   | % |
| Over three through six months |   |                   | 15,499  |   |     | 1.93   | % |
| Over six through 12 months    |   |                   | 26,245  |   |     | 3.22   | % |
| Over 12 months                |   |                   | 56,667  |   |     | 3.02   | % |
| Total                         |   | $                      | 110,350 |   |     | 2.77   | % |

----

|                                                                     |   | Years Ended December 31, |   |
|--------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                     |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                                     |   | (Dollars in Thousands)   |   |
| Maximum amount of advances outstanding at any month-end during the year: |   |                     |   |   |   |   |   |   |   |
| FHLB Advances                                                            |   | $                        | 80,907 |   |   | $ | 71,258 |   |   | $ | 76,567 |   |
| Securities sold under agreements to repurchase                           |   |                     | 29,639 |   |   |   | 27,334 |   |   |   | 38,557 |   |
| Other borrowings                                                         |   |                     | -      |   |   |   | - |   |   |   | 50 |   |
| Average advances outstanding during the year:                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| FHLB Advances                                                            |   | $                        | 74,775 |   |   | $ | 58,278 |   |   | $ | 45,872 |   |
| Securities sold under agreements to repurchase                           |   |                     | 18,703 |   |   |   | 21,339 |   |   |   | 23,191 |   |
| Other borrowings                                                         |   |                     | -      |   |   |   | - |   |   |   | 25 |   |
| Weighted average interest rate during the year:                          |   |                     |   |   |   |   |   |   |   |   |   |   |
| FHLB Advances                                                            |   |                     | 2.70   | % |   |   | 2.90 | % |   |   | 3.16 | % |
| Securities sold under agreements to repurchase                           |   |                     | 0.36   | % |   |   | 0.98 | % |   |   | 1.50 | % |
| Other borrowings                                                         |   |                     | -      |   |   |   | - |   |   |   | 7.00 | % |
| Balance outstanding at end of year:                                      |   |                     |   |   |   |   |   |   |   |   |   |   |
| FHLB Advances                                                            |   | $                        | 71,615 |   |   | $ | 63,675 |   |   | $ | 76,567 |   |
| Securities sold under agreements to repurchase                           |   |                     | 17,972 |   |   |   | 20,422 |   |   |   | 21,956 |   |
| Other borrowings                                                         |   |                     | -      |   |   |   | - |   |   |   | - |   |
| Weighted average interest rate at end of year:                           |   |                     |   |   |   |   |   |   |   |   |   |   |
| FHLB Advances                                                            |   |                     | 2.54   | % |   |   | 3.04 | % |   |   | 2.24 | % |
| Securities sold under agreements to repurchase                           |   |                     | 0.25   | % |   |   | 0.50 | % |   |   | 1.25 | % |
| Other borrowings                                                         |   |                     | -      |   |   |   | - |   |   |   | - |   |

----

----

|                                                                                                |   | For the Years Ended December 31, |    |
|-----------------------------------------------------------------------------------------------------|--------|----------------------------------|---------|
|                                                                                                |   | 2010                             |    |   | 2009 |   |   | 2008 |   |
|                                                                                                |   |                             |    |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |   |   |   |   |   |   |   | Average |   |
|                                                                                                |   | Average                          |    |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |   | Average |   |   |   |   |   | Yield/ |   |
|                                                                                                |   | Balance                          |    |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |   | Balance |   |   | Interest |   |   | Rate |   |
|                                                                                                |   | (Dollars in Thousands)           |    |
| Interest-earning assets:                                                                            |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investments (1)                                                                                     |   | $                                | 64,381  |   |   | $ | 1,971 |   |   | 3.06 | % |   | $ | 49,136 |   |   | $ | 993 |   |   | 2.02 | % |   | $ | 49,530 |   |   | $ | 1,410 |   |   | 2.85 | % |
| Loans:                                                                                              |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate loans                                                                       |   |                             | 145,269 |   |   |   | 7,668 |   |   | 5.28 | % |   |   | 157,687 |   |   |   | 8,662 |   |   | 5.49 | % |   |   | 165,265 |   |   |   | 9,366 |   |   | 5.67 | % |
| Commercial real estate loans                                                                        |   |                             | 180,560 |   |   |   | 10,808 |   |   | 5.99 | % |   |   | 170,975 |   |   |   | 10,536 |   |   | 6.16 | % |   |   | 157,601 |   |   |   | 10,110 |   |   | 6.41 | % |
| Consumer loans                                                                                      |   |                             | 33,764  |   |   |   | 1,637 |   |   | 4.85 | % |   |   | 32,029 |   |   |   | 1,648 |   |   | 5.15 | % |   |   | 29,135 |   |   |   | 1,757 |   |   | 6.03 | % |
| Commercial loans                                                                                    |   |                             | 74,599  |   |   |   | 3,424 |   |   | 4.59 | % |   |   | 60,263 |   |   |   | 2,830 |   |   | 4.70 | % |   |   | 50,349 |   |   |   | 2,892 |   |   | 5.74 | % |
| Loans, net (2)                                                                                      |   |                             | 434,192 |   |   |   | 23,537 |   |   | 5.42 | % |   |   | 420,954 |   |   |   | 23,676 |   |   | 5.62 | % |   |   | 402,350 |   |   |   | 24,125 |   |   | 6.00 | % |
| Other                                                                                               |   |                             | 16,525  |   |   |   | 32 |   |   | 0.19 | % |   |   | 20,459 |   |   |   | 29 |   |   | 0.14 | % |   |   | 16,983 |   |   |   | 404 |   |   | 2.38 | % |
| Total interest-earning assets                                                                       |   |                             | 515,098 |   |   |   | 25,540 |   |   | 4.96 | % |   |   | 490,549 |   |   |   | 24,698 |   |   | 5.03 | % |   |   | 468,863 |   |   |   | 25,939 |   |   | 5.53 | % |
| Noninterest-earning assets                                                                          |   |                             | 40,823  |   |   |   |   |   |   |   |   |   |   | 41,669 |   |   |   |   |   |   |   |   |   |   | 29,494 |   |   |   |   |   |   |   |   |
| Total assets                                                                                        |   | $                                | 555,921 |   |   |   |   |   |   |   |   |   | $ | 532,218 |   |   |   |   |   |   |   |   |   | $ | 498,357 |   |   |   |   |   |   |   |   |
|                                                                                                |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                                                       |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                                                           |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market accounts                                                                               |   | $                                | 59,506  |   |   | $ | 400 |   |   | 0.67 | % |   | $ | 60,292 |   |   | $ | 559 |   |   | 0.93 | % |   | $ | 45,340 |   |   | $ | 916 |   |   | 2.02 | % |
| Savings accounts (3)                                                                                |   |                             | 44,272  |   |   |   | 101 |   |   | 0.23 | % |   |   | 41,783 |   |   |   | 148 |   |   | 0.35 | % |   |   | 39,864 |   |   |   | 266 |   |   | 0.67 | % |
| NOW accounts                                                                                        |   |                             | 16,694  |   |   |   | 37 |   |   | 0.22 | % |   |   | 16,445 |   |   |   | 47 |   |   | 0.29 | % |   |   | 14,712 |   |   |   | 61 |   |   | 0.41 | % |
| Certificates of deposit                                                                             |   |                             | 206,178 |   |   |   | 5,392 |   |   | 2.62 | % |   |   | 205,354 |   |   |   | 6,451 |   |   | 3.14 | % |   |   | 201,026 |   |   |   | 8,148 |   |   | 4.05 | % |
| Total interest-bearing deposits                                                                     |   |                             | 326,650 |   |   |   | 5,930 |   |   | 1.82 | % |   |   | 323,874 |   |   |   | 7,205 |   |   | 2.22 | % |   |   | 300,942 |   |   |   | 9,391 |   |   | 3.12 | % |
| FHLB advances                                                                                       |   |                             | 74,775  |   |   |   | 2,018 |   |   | 2.70 | % |   |   | 58,278 |   |   |   | 1,692 |   |   | 2.90 | % |   |   | 45,872 |   |   |   | 1,448 |   |   | 3.16 | % |
| Securities sold under agreement to                                                                  |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| repurchase                                                                                          |   |                             | 18,703  |   |   |   | 68 |   |   | 0.36 | % |   |   | 21,339 |   |   |   | 210 |   |   | 0.98 | % |   |   | 23,191 |   |   |   | 348 |   |   | 1.50 | % |
| Other borrowings                                                                                    |   |                             | -       |   |   |   | - |   |   | 7.00 | % |   |   | - |   |   |   | - |   |   | 7.00 | % |   |   | 25 |   |   |   | 2 |   |   | 8.00 | % |
| Total interest-bearing borrowings                                                                   |   |                             | 93,478  |   |   |   | 2,086 |   |   | 2.23 | % |   |   | 79,617 |   |   |   | 1,902 |   |   | 2.39 | % |   |   | 69,088 |   |   |   | 1,798 |   |   | 2.60 | % |
| Total interest-bearing liabilities                                                                  |   |                             | 420,128 |   |   |   | 8,016 |   |   | 1.91 | % |   |   | 403,491 |   |   |   | 9,107 |   |   | 2.26 | % |   |   | 370,030 |   |   |   | 11,189 |   |   | 3.02 | % |
| Demand deposits                                                                                     |   |                             | 40,809  |   |   |   |   |   |   |   |   |   |   | 33,908 |   |   |   |   |   |   |   |   |   |   | 29,228 |   |   |   |   |   |   |   |   |
| Other noninterest-bearing liabilities                                                               |   |                             | 259     |   |   |   |   |   |   |   |   |   |   | 285 |   |   |   |   |   |   |   |   |   |   | 197 |   |   |   |   |   |   |   |   |
| Total liabilities                                                                                   |   |                             | 461,196 |   |   |   |   |   |   |   |   |   |   | 437,684 |   |   |   |   |   |   |   |   |   |   | 399,455 |   |   |   |   |   |   |   |   |
| Total stockholders' equity                                                                          |   |                             | 94,725  |   |   |   |   |   |   |   |   |   |   | 94,534 |   |   |   |   |   |   |   |   |   |   | 98,902 |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                                                          |   | $                                | 555,921 |   |   |   |   |   |   |   |   |   | $ | 532,218 |   |   |   |   |   |   |   |   |   | $ | 498,357 |   |   |   |   |   |   |   |   |
|                                                                                                |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest-earning assets                                                                         |   | $                                | 94,970  |   |   |   |   |   |   |   |   |   | $ | 87,058 |   |   |   |   |   |   |   |   |   | $ | 98,833 |   |   |   |   |   |   |   |   |
| Tax equivalent net interest income/                                                                 |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| interest rate spread (4)                                                                            |   |                             |    |   |   |   | 17,524 |   |   | 3.05 | % |   |   |   |   |   |   | 15,591 |   |   | 2.77 | % |   |   |   |   |   |   | 14,750 |   |   | 2.51 | % |
| Tax equivalent net interest margin (net interest income as a percentage of interest-earning assets) |   |                             |    |   |   |   |   |   |   | 3.40 | % |   |   |   |   |   |   |   |   |   | 3.18 | % |   |   |   |   |   |   |   |   |   | 3.15 | % |
| Ratio of interest-earning assets                                                                    |   |                             |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to interest-bearing liabilities                                                                     |   |                             |    |   |   |   |   |   |   | 122.61 | % |   |   |   |   |   |   |   |   |   | 121.58 | % |   |   |   |   |   |   |   |   |   | 126.71 | % |
| Less: tax equivalent adjustment (1)                                                                 |   |                             |    |   |   |   | (683 | ) |   |   |   |   |   |   |   |   |   | (184 | ) |   |   |   |   |   |   |   |   |   | (156 | ) |   |   |   |
| Net interest income as reported on income statement                                                 |   |                             | $       | 16,841 |   |   |   |   |   |   |   |   |   | $ | 15,407 |   |   |   |   |   |   |   |   |   | $ | 14,594 |   |   |   |   |

| (1) |   | Municipal securities income and net interest income are presented on a tax equivalent basis using a tax rate of 41%. The tax equivalent adjustment is deducted from the tax equivalent net interest income to agree to the amount reported on the statement of operations. See 'Explanation of Use of Non-GAAP Financial Measurements'. |
|-----|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (2) |   | Loans, net excludes loans held for sale and the allowance for loan losses and includes nonperforming loans.                                                                                                                                                                                                                             |
| (3) |   | Savings accounts include mortgagors' escrow deposits.                                                                                                                                                                                                                                                                                   |
| (4) |   | Tax equivalent interest rate spread represents the difference between the weighted average yield on interest-earning assets and the weighted average cost of interest-bearing liabilities.                                                                                                                                              |

----

|                                                                   |   | Year Ended             |   |   | Year Ended        |   |
|------------------------------------------------------------------------|--------|------------------------|--------|--------|-------------------|--------|
|                                                                   |   | December 31, 2010      |   |   | December 31, 2009 |   |
|                                                                   |   | Compared to            |   |   | Compared to       |   |
|                                                                   |   | December 31, 2009      |   |   | December 31, 2008 |   |
|                                                                   |   | Increase (Decrease)    |   |   |              |   |   | Increase (Decrease) |   |   |   |   |
|                                                                   |   | Due to                 |   |   |              |   |   | Due to |   |   |   |   |
|                                                                   |   | Volume                 |   |   | Rate              |   |   | Net |   |   | Volume |   |   | Rate |   |   | Net |   |
|                                                                   |   | (Dollars in Thousands) |   |
|                                                                   |   |                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-earning assets:                                               |   |                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities                                                  |   | $                      | 368    |   |              | $      | 610 |   |   | $ | 978 |   |   | $ | (11 | ) |   | $ | (406 | ) |   | $ | (417 | ) |
| Loans:                                                                 |   |                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Residential real estate loans                                          |   |                   | (664   | )      |              |   | (330 | ) |   |   | (994 | ) |   |   | (421 | ) |   |   | (283 | ) |   |   | (704 | ) |
| Commercial real estate loans                                           |   |                   | 580    |   |              |   | (308 | ) |   |   | 272 |   |   |   | 835 |   |   |   | (409 | ) |   |   | 426 |   |
| Consumer loans                                                         |   |                   | 87     |   |              |   | (98 | ) |   |   | (11 | ) |   |   | 164 |   |   |   | (273 | ) |   |   | (109 | ) |
| Commercial loans                                                       |   |                   | 661    |   |              |   | (67 | ) |   |   | 594 |   |   |   | 523 |   |   |   | (585 | ) |   |   | (62 | ) |
|       Total loans                        |   |                   | 664    |   |              |   | (803 | ) |   |   | (139 | ) |   |   | 1,101 |   |   |   | (1,550 | ) |   |   | (449 | ) |
| Other                                                                  |   |                   | (7     | )      |              |   | 10 |   |   |   | 3 |   |   |   | 71 |   |   |   | (446 | ) |   |   | (375 | ) |
|       Total interest-earning assets      |   | $                      | 1,025  |   |              | $      | (183 | ) |   | $ | 842 |   |   | $ | 1,161 |   |   | $ | (2,402 | ) |   | $ | (1,241 | ) |
|                                                                   |   |                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest-bearing liabilities:                                          |   |                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Deposits:                                                              |   |                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Money market accounts                                                  |   | $                      | (7     | )      |              | $      | (152 | ) |   | $ | (159 | ) |   | $ | 240 |   |   | $ | (597 | ) |   | $ | (357 | ) |
| Savings accounts (1)                                                   |   |                   | 9      |   |              |   | (56 | ) |   |   | (47 | ) |   |   | 12 |   |   |   | (130 | ) |   |   | (118 | ) |
| NOW accounts                                                           |   |                   | 1      |   |              |   | (11 | ) |   |   | (10 | ) |   |   | 6 |   |   |   | (20 | ) |   |   | (14 | ) |
| Certificates of deposit                                                |   |                   | 26     |   |              |   | (1,085 | ) |   |   | (1,059 | ) |   |   | 172 |   |   |   | (1,869 | ) |   |   | (1,697 | ) |
|       Total interest-bearing deposits    |   |                   | 29     |   |              |   | (1,304 | ) |   |   | (1,275 | ) |   |   | 430 |   |   |   | (2,616 | ) |   |   | (2,186 | ) |
| FHLB advances                                                          |   |                   | 455    |   |              |   | (129 | ) |   |   | 326 |   |   |   | 370 |   |   |   | (126 | ) |   |   | 244 |   |
| Securities sold under agreement                                        |   |                   |   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| to repurchase                                                          |   |                   | (23    | )      |              |   | (119 | ) |   |   | (142 | ) |   |   | (26 | ) |   |   | (112 | ) |   |   | (138 | ) |
| Other borrowings                                                       |   |                   | -      |   |              |   | - |   |   |   | - |   |   |   | (2 | ) |   |   | - |   |   |   | (2 | ) |
|       Total interest-bearing borrowings  |   |                   | 432    |   |              |   | (248 | ) |   |   | 184 |   |   |   | 342 |   |   |   | (238 | ) |   |   | 104 |   |
|       Total interest-bearing liabilities |   |                   | 461    |   |              |   | (1,552 | ) |   |   | (1,091 | ) |   |   | 772 |   |   |   | (2,854 | ) |   |   | (2,082 | ) |
| Increase in net interest income                                        |   | $                      | 564    |   |              | $      | 1,369 |   |   | $ | 1,933 |   |   | $ | 389 |   |   | $ | 452 |   |   | $ | 841 |   |

| (1) | Includes interest on mortgagors' escrow deposits. |
|-----|---------------------------------------------------|

----

----

----

----

|                                         |   | For the Years Ended December 31, |   |
|----------------------------------------------|--------|----------------------------------|--------|
|                                         |   | 2010                             |   |   | 2009 |   |   | 2008 |   |
|                                         |   | (Dollars in Thousands)           |   |
|                                         |   |                             |   |   | Average |   |   |   |   |   | Average |   |   |   |   |   | Average |   |
|                                         |   | Interest                         |   |   | Yield |   |   | Interest |   |   | Yield |   |   | Interest |   |   | Yield |   |
|                                         |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                         |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Investment securities (non-tax adjustment)   |   | $                                | 1,288  |   |   | 2.00 | % |   | $ | 809 |   |   | 1.65 | % |   | $ | 1,254 |   |   | 2.53 | % |
| Tax equivalent adjustment (1)                |   |                             | 683    |   |   |   |   |   |   | 184 |   |   |   |   |   |   | 156 |   |   |   |   |
| Investment securities (tax equivalent basis) |   | $                                | 1,971  |   |   | 3.06 | % |   | $ | 993 |   |   | 2.02 | % |   | $ | 1,410 |   |   | 2.85 | % |
|                                         |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income (non-tax adjustment)     |   | $                                | 16,841 |   |   |   |   |   | $ | 15,407 |   |   |   |   |   | $ | 14,594 |   |   |   |   |
| Tax equivalent adjustment (1)                |   |                             | 683    |   |   |   |   |   |   | 184 |   |   |   |   |   |   | 156 |   |   |   |   |
| Net interest income (tax equivalent basis)   |   | $                                | 17,524 |   |   |   |   |   | $ | 15,591 |   |   |   |   |   | $ | 14,750 |   |   |   |   |
|                                         |   |                             |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest rate spread (no tax adjustment)     |   |                             |   |   |   | 2.92 | % |   |   |   |   |   | 2.74 | % |   |   |   |   |   | 2.48 | % |
| Net interest margin (no tax adjustment)      |   |                             |   |   |   | 3.27 | % |   |   |   |   |   | 3.14 | % |   |   |   |   |   | 3.11 | % |

----

|                                |   | At December 31,        |   |
|-------------------------------------|--------|------------------------|--------|
|                                |   | 2010                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                |   | (Dollars in Thousands) |   |
| Non-accrual loans:                  |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                         |   | $                      | 5,487  |   |   | $ | 3,722 |   |   | $ | 2,595 |   |   | $ | 779 |   |   | $ | 1,460 |   |
| Construction                        |   |                   | 316    |   |   |   | 184 |   |   |   | 97 |   |   |   | 167 |   |   |   | - |   |
| Commercial                          |   |                   | 391    |   |   |   | 664 |   |   |   | 139 |   |   |   | 63 |   |   |   | 243 |   |
| Consumer (1)                        |   |                   | 276    |   |   |   | 274 |   |   |   | 85 |   |   |   | 5 |   |   |   | 8 |   |
|      Total |   | $                      | 6,470  |   |   | $ | 4,844 |   |   | $ | 2,916 |   |   | $ | 1,014 |   |   | $ | 1,711 |   |
| Real estate owned                   |   |                   | 286    |   |   |   | 80 |   |   |   | 269 |   |   |   | - |   |   |   | - |   |
| Total nonperforming assets          |   | $                      | 6,756  |   |   | $ | 4,924 |   |   | $ | 3,185 |   |   | $ | 1,014 |   |   | $ | 1,711 |   |
| Total nonperforming loans as a      |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| percentage of total loans (2)       |   |                   | 1.49   | % |   |   | 1.13 | % |   |   | 0.69 | % |   |   | 0.26 | % |   |   | 0.46 | % |
| Total nonperforming assets as a     |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| percentage of total assets (3)      |   |                   | 1.18   | % |   |   | 0.90 | % |   |   | 0.60 | % |   |   | 0.22 | % |   |   | 0.38 | % |

| (1) | Consumer loans include home equity loans. |
|-----|-------------------------------------------|

| (2) | Total loans equals net loans plus the allowance for loan losses. |
|-----|------------------------------------------------------------------|

| (3) | Nonperforming assets consist of nonperforming loans and real estate owned. Nonperforming loans consist of all loans 90 days or more past due and other loans which have been identified by the Company as presenting uncertainty with respect to the collectability of interest or principal. The Company had one troubled debt restructuring included in nonperforming loans of $1.4 million at December 31, 2010. |
|-----|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|                                                 |   | December 31,           |   |
|------------------------------------------------------|--------|------------------------|--------|
|                                                 |   | 2010                   |   |   | 2009 |   |   | 2008 |   |
|                                                 |   | (Dollars in Thousands) |   |
| Special mention loans                                |   | $                      | 19,462 |   |   | $ | 17,342 |   |   | $ | 12,109 |   |
| Substandard loans                                    |   |                   | 15,186 |   |   |   | 7,939 |   |   |   | 4,439 |   |
| Doubtful loans                                       |   |                   | -      |   |   |   | 502 |   |   |   | 37 |   |
| Loss loans                                           |   |                   | -      |   |   |   | 17 |   |   |   | - |   |
|      Total classified loans |   | $                      | 34,648 |   |   | $ | 25,800 |   |   | $ | 16,585 |   |

----

----

|            |   | For Years Ended December 31, |   |
|-----------------|--------|------------------------------|--------|
|            |   | 2010                         |   |   | 2009 |   |   | 2008 |   |
|            |   |                         |   |   | % of |   |   | Percent |   |   |   |   |   | % of |   |   | Percent |   |   |   |   |   | % of |   |   | Percent |   |
|            |   |                         |   |   | Allowance |   |   | of Loans |   |   |   |   |   | Allowance |   |   | of Loans |   |   |   |   |   | Allowance |   |   | of Loans |   |
|            |   |                         |   |   | in each |   |   | in each |   |   |   |   |   | in each |   |   | in each |   |   |   |   |   | in each |   |   | in each |   |
|            |   |                         |   |   | Category |   |   | Category |   |   |   |   |   | Category |   |   | Category |   |   |   |   |   | Category |   |   | Category |   |
|            |   |                         |   |   | to Total |   |   | to Total |   |   |   |   |   | to Total |   |   | to Total |   |   |   |   |   | to Total |   |   | to Total |   |
|            |   | Amount                       |   |   | Allowance |   |   | Loans |   |   | Amount |   |   | Allowance |   |   | Loans |   |   | Amount |   |   | Allowance |   |   | Loans |   |
|            |   | (Dollars in Thousands)       |   |
|            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate     |   | $                            | 2,424  |   |   | 54.7 | % |   | 74.9 | % |   | $ | 2,105 |   |   | 51.6 | % |   | 74.0 | % |   | $ | 1,784 |   |   | 53.5 | % |   | 76.1 | % |
| Construction    |   |                         | 550    |   |   | 12.4 | % |   | 7.6 | % |   |   | 811 |   |   | 19.9 | % |   | 9.0 | % |   |   | 624 |   |   | 18.7 | % |   | 9.9 | % |
| Commercial      |   |                         | 1,429  |   |   | 32.3 | % |   | 16.8 | % |   |   | 1,124 |   |   | 27.6 | % |   | 16.0 | % |   |   | 895 |   |   | 26.9 | % |   | 13.0 | % |
| Consumer        |   |                         | 28     |   |   | 0.6 | % |   | 0.7 | % |   |   | 37 |   |   | 0.9 | % |   | 1.0 | % |   |   | 30 |   |   | 0.9 | % |   | 1.0 | % |
| Unallocated     |   |                         | -      |   |   | - |   |   | - |   |   |   | - |   |   | - |   |   | - |   |   |   | - |   |   | - |   |   | - |   |
| Total allowance |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for loan losses |   | $                            | 4,431  |   |   | 100.0 | % |   | 100.0 | % |   | $ | 4,077 |   |   | 100.0 | % |   | 100.0 | % |   | $ | 3,333 |   |   | 100.0 | % |   | 100.0 | % |
|            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|            |   | For Years Ended December 31, |   |   |   |   |   |   |   |   |   |   |   |
|            |   |                         | 2007   |   |   |   | 2006 |   |   |   |   |   |   |   |   |   |   |   |
|            |   |                         |   |   |   | % of |   |   | Percent |   |   |   |   |   |   | % of |   |   | Percent |   |   |   |   |   |   |   |   |   |   |   |
|            |   |                         |   |   |   | Allowance |   |   | of Loans |   |   |   |   |   |   | Allowance |   |   | of Loans |   |   |   |   |   |   |   |   |   |   |   |
|            |   |                         |   |   |   | in each |   |   | in each |   |   |   |   |   |   | in each |   |   | in each |   |   |   |   |   |   |   |   |   |   |   |
|            |   |                         |   |   |   | Category |   |   | Category |   |   |   |   |   |   | Category |   |   | Category |   |   |   |   |   |   |   |   |   |   |   |
|            |   |                         |   |   |   | to Total |   |   | to Total |   |   |   |   |   |   | to Total |   |   | to Total |   |   |   |   |   |   |   |   |   |   |   |
|            |   | Amount                       |   |   | Allowance |   |   | Loans |   |   | Amount |   |   | Allowance |   |   | Loans |   |   |   |   |   |   |   |   |   |   |   |
|            |   | (Dollars in Thousands)       |   |   |   |   |   |   |   |   |   |   |   |
|            |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate     |   | $                            | 1,636  |   |   | 53.2 | % |   | 76.3 | % |   | $ | 1,531 |   |   | 52.6 | % |   | 75.3 | % |   |   |   |   |   |   |   |   |   |   |
| Construction    |   |                         | 603    |   |   | 19.6 | % |   | 10.6 | % |   |   | 626 |   |   | 21.5 | % |   | 11.2 | % |   |   |   |   |   |   |   |   |   |   |
| Commercial      |   |                         | 778    |   |   | 25.3 | % |   | 12.0 | % |   |   | 724 |   |   | 24.9 | % |   | 12.5 | % |   |   |   |   |   |   |   |   |   |   |
| Consumer        |   |                         | 31     |   |   | 1.0 | % |   | 1.1 | % |   |   | 27 |   |   | 1.0 | % |   | 1.0 | % |   |   |   |   |   |   |   |   |   |   |
| Unallocated     |   |                         | 28     |   |   | 0.9 | % |   | - |   |   |   | - |   |   | - |   |   | - |   |   |   |   |   |   |   |   |   |   |   |
| Total allowance |   |                         |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| for loan losses |   | $                            | 3,076  |   |   | 100.0 | % |   | 100.0 | % |   | $ | 2,908 |   |   | 100.0 | % |   | 100.0 | % |   |   |   |   |   |   |   |   |   |   |

----

|                                                 |   | At or for the Years Ended December 31, |   |
|------------------------------------------------------|--------|----------------------------------------|--------|
|                                                 |   | 2010                                   |   |   | 2009 |   |   | 2008 |   |   | 2007 |   |   | 2006 |   |
|                                                 |   | (Dollars in Thousands)                 |   |
|                                                 |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                 |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses, beginning of period       |   | $                                      | 4,077  |   |   | $ | 3,333 |   |   | $ | 3,076 |   |   | $ | 2,908 |   |   | $ | 2,605 |   |
| Charged-off loans:                                   |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                                          |   |                                   | (450   | ) |   |   | (93 | ) |   |   | - |   |   |   | (25 | ) |   |   | (47 | ) |
| Construction                                         |   |                                   | (107   | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial                                           |   |                                   | (266   | ) |   |   | (9 | ) |   |   | - |   |   |   | (3 | ) |   |   | (88 | ) |
| Consumer                                             |   |                                   | (109   | ) |   |   | (69 | ) |   |   | (71 | ) |   |   | (37 | ) |   |   | (4 | ) |
| Total charged-off loans                              |   |                                   | (932   | ) |   |   | (171 | ) |   |   | (71 | ) |   |   | (65 | ) |   |   | (139 | ) |
| Recoveries on loans previously charged-off:          |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Real estate                                          |   |                                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Construction                                         |   |                                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Commercial                                           |   |                                   | 38     |   |   |   | - |   |   |   | - |   |   |   | 10 |   |   |   | 2 |   |
| Consumer                                             |   |                                   | 25     |   |   |   | 18 |   |   |   | 13 |   |   |   | - |   |   |   | - |   |
| Total recoveries                                     |   |                                   | 63     |   |   |   | 18 |   |   |   | 13 |   |   |   | 10 |   |   |   | 2 |   |
| Net loans charged-off                                |   |                                   | (869   | ) |   |   | (153 | ) |   |   | (58 | ) |   |   | (55 | ) |   |   | (137 | ) |
| Provision for loan losses                            |   |                                   | 1,223  |   |   |   | 897 |   |   |   | 315 |   |   |   | 223 |   |   |   | 440 |   |
| Allowance for loan losses, end of period             |   | $                                      | 4,431  |   |   | $ | 4,077 |   |   | $ | 3,333 |   |   | $ | 3,076 |   |   | $ | 2,908 |   |
|                                                 |   |                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loans charged-off to average loans, net          |   |                                   | 0.20   | % |   |   | 0.04 | % |   |   | 0.01 | % |   |   | 0.01 | % |   |   | 0.04 | % |
| Allowance for loan losses to total loans (1)         |   |                                   | 1.02   | % |   |   | 0.95 | % |   |   | 0.79 | % |   |   | 0.80 | % |   |   | 0.78 | % |
| Allowance for loan losses to nonperforming loans (2) |   |                                   | 68.48  | % |   |   | 84.17 | % |   |   | 114.30 | % |   |   | 303.35 | % |   |   | 169.96 | % |
| Net loans charged-off to allowance for loan losses   |   |                                   | 19.61  | % |   |   | 3.75 | % |   |   | 1.74 | % |   |   | 1.79 | % |   |   | 4.71 | % |
| Recoveries to charge-offs                            |   |                                   | 6.76   | % |   |   | 10.53 | % |   |   | 18.31 | % |   |   | 15.38 | % |   |   | 1.44 | % |

| (1) | Total loans equals net loans plus the allowance for loan losses. |
|-----|------------------------------------------------------------------|

| (2) | Nonperforming loans consist of all loans 90 days or more past due and other loans which have been identified by the Company as presenting uncertainty with respect to the collectability of interest or principal. |
|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| Increase (Decrease)    |      |   |   | Net Interest Income |   |
|------------------------|-----------|--------|--------|---------------------|--------|
| in Market Interest     |      |   |   |                |   |   |   |   |   |   |   |
| Rates (Rate Shock)     |      |   |   | $ Amount            |   |   | $ Change |   |   | % Change |   |
| (Dollars In Thousands) |      |
| 500                    |   bp |   |   | $                   | 20,084 |   |   | $ | 3,251 |   |   | 19.3 | % |
| 400                    |      |   |   | $                   | 19,392 |   |   | $ | 2,559 |   |   | 15.2 | % |
| 300                    |      |   |   | $                   | 18,718 |   |   | $ | 1,885 |   |   | 11.2 | % |
| 200                    |      |   |   | $                   | 18,267 |   |   | $ | 1,434 |   |   | 8.5 | % |
| 100                    |      |   |   | $                   | 17,637 |   |   | $ | 804 |   |   | 4.8 | % |
| -                      |      |   |   | $                   | 16,833 |   |   |   | - |   |   | - |   |
| (100                   | )         |   |   | $                   | 15,642 |   |   | $ | (1,191 | ) |   | -7.1 | % |
| (200                   | )         |   |   | $                   | 14,948 |   |   | $ | (1,885 | ) |   | -11.2 | % |

----

----

|                                                 |   | Payments due by period |   |
|------------------------------------------------------|--------|------------------------|--------|
|                                                 |   |                   |   |   | Less Than |   |   | One to |   |   | Three to |   |   | More Than |   |
|                                                 |   | Total                  |   |   | One Year |   |   | Three Years |   |   | Five Years |   |   | Five Years |   |
|                                                 |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Long-term debt                                       |   | $                      | 71,615 |   |   | $ | 5,000 |   |   | $ | 25,600 |   |   | $ | 32,619 |   |   | $ | 8,396 |   |
| Operating lease obligations                          |   |                   | 6,051  |   |   |   | 410 |   |   |   | 744 |   |   |   | 748 |   |   |   | 4,149 |   |
| Other long-term liabilities reflected on the         |   |                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Company's balance sheet under GAAP |   |                   | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |
|       Total            |   | $                      | 77,666 |   |   | $ | 5,410 |   |   | $ | 26,344 |   |   | $ | 33,367 |   |   | $ | 12,545 |   |

----

Item 7A.  Quantitative and Qualitative Disclosures about Market Risk.

Item 8.  Financial Statements and Supplementary Data.

Item 9.  Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.

Item 9A.  Controls and Procedures.

|   | (a) | Disclosure Controls and Procedures |
|--------|-----|------------------------------------|

|   | (b) | Internal Controls Over Financial Reporting |
|--------|-----|--------------------------------------------|

|   | (c)  Changes to Internal Control Over Financial Reporting |
|--------|---------------------------------------------------------------------|

Item 9B.   Other Information

----

PART III

Item 10. Directors, Executive Officers and Corporate Governance.

Item 11. Executive Compensation.

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholders Matters.

|   | (a) | Security Ownership of Certain Beneficial Owners Information required by this item is incorporated herein by reference to the section captioned “Stock Ownership” in Chicopee Bancorp’s Proxy Statement for the 2011 Annual Meeting of Stockholders. |
|--------|-----|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

|   | (b) | Security Ownership of Management Information required by this item is incorporated herein by reference to the section captioned “Stock Ownership” in Chicopee Bancorp’s Proxy Statement for the 2011 Annual Meeting of Stockholders. |
|--------|-----|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|   | (c) | Changes in Control |
|--------|-----|--------------------|

|   | (d) | Equity Compensation Plan Information |
|--------|-----|--------------------------------------|

|   | The following table sets forth information as of December 31, 2010 about Company common stock that may be issued under the Chicopee Bancorp, Inc. 2007 Equity Incentive Plan.  The plan was approved by the Company’s stockholders. |
|--------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                             |   |                 |   |   |                |   |   | Number of Securities   |    |
|----------------------------------|--------|----------------------|--------|--------|---------------------|--------|--------|------------------------|---------|
|                             |   |                 |   |   |                |   |   | Remaining Available    |    |
|                             |   |                 |   |   |                |   |   | for Future Issuance    |    |
|                             |   | Number of Securities |   |   |                |   |   | Under Equity           |    |
|                             |   | to be Issued Upon    |   |   | Weighted-Average    |   |   | Compensation Plans     |    |
|                             |   | the Exercise of      |   |   | Exercise Price of   |   |   | (Excluding Securities  |    |
|                             |   | Outstanding Options  |   |   | Outstanding Options |   |   | Reflected in the First |    |
| Plan Category                    |   | Warrants and Rights  |   |   | Warrants and Rights |   |   | Column)                |    |
|                             |   |                 |   |   |                |   |   |                   |    |
| Equity compensation plans        |   |                 |   |   |                |   |   |                   |    |
| approved by security holders     |   | 708,720              |   |   | $                   | 14.22  |   |                   | 156,738 |   |
|                             |   |                 |   |   |                |   |   |                   |    |   |
| Equity compensation plans        |   |                 |   |   |                |   |   |                   |    |   |
| not approved by security holders |   | n/a                  |   |   |                | n/a    |   |                   | n/a     |   |
|                             |   |                 |   |   |                |   |   |                   |    |   |
| Total                            |   | 708,720              |   |   | $                   | 14.22  |   |                   | 156,738 |   |

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

Item 14. Principal Accountant Fees and Services.

----

PART IV

Item 15.  Exhibits and Financial Statements Schedules.

| - | Report of Independent Registered Public Accounting Firm                                                               |
|---|-----------------------------------------------------------------------------------------------------------------------|
| - | Consolidated Balance Sheets at December 31, 2010 and 2009                                                             |
| - | Consolidated Statements of Operations for the Years Ended December 31, 2010, 2009 and 2008                       |
| - | Consolidated Statements of Changes in Stockholders’ Equity for the Years Ended December 31, 2010, 2009 and 2008 |
| - | Consolidated Statements of Cash Flows for the Years Ended December 31, 2010, 2009 and 2008                            |
| - | Notes to Consolidated Financial Statements                                                                            |

| No.    |   | Description |
|--------|--------|-------------|
|   |   |        |
|   | 3.1    |        | Certificate of Incorporation of Chicopee Bancorp, Inc. (1) |
|   |   |        |   |
|   | 3.2    |        | Bylaws of Chicopee Bancorp, Inc. (2) |
|   |   |        |   |
|   | 4.1    |        | Stock Certificate of Chicopee Bancorp, Inc. (1) |
|   |   |        |   |
|   | 10.1   | *           | Amended and Restated Employment Agreement between William J. Wagner and Chicopee Bancorp, Inc. (3) |
|   |   |        |   |
|   | 10.2   | *           | Amended and Restated Employment Agreement between William J. Wagner and Chicopee Savings Bank (3) |
|   |   |        |   |
|   | 10.3   | *           | Amended and Restated Change in Control Agreement between Russell J. Omer and Chicopee Savings Bank (3) |
|   |   |        |   |
|   | 10.4   | *           | Amended and Restated Change in Control Agreement between Alzira C. Costa and Chicopee Savings Bank (3) |
|   |   |        |   |
|   | 10.5   | *           | Amended and Restated Change in Control Agreement between Maria J.C. Aigner and Chicopee Savings Bank (3) |
|   |   |        |   |
|   | 10.6   | *           | Form of Chicopee Savings Bank Employee Stock Ownership Plan (1) |
|   |   |        |   |
|   | 10.7   | *           | Form of Trust Agreement between Chicopee Savings Bank and the Trustee for Chicopee Savings Bank Employee Stock Ownership Plan Trust (1) |
|   |   |        |   |
|   | 10.8   | *           | Form of Loan Agreement (1) |
|   |   |        |   |
|   | 10.9   | *           | Amended and Restated Chicopee Savings Bank Employee Severance Compensation Plan (3) |
|   |   |        |   |
|   | 10.10  | *           | Amended and Restated Chicopee Savings Bank Supplemental Executive Retirement Plan (3) |
|   |   |        |   |
|   | 10.11  | *           | Form of Executive Supplemental Retirement Income Agreement between Chicopee Savings Bank and Alzira C. Costa, Russell J. Omer and William J. Wagner (1) |
|   |   |        |   |
|   | 10.12  | *           | Form of First Amendment to the Executive Supplemental Retirement Income Agreement between Chicopee Savings Bank and Alzira C. Costa, Russell J. Omer and William J. Wagner (3) |
|   |   |        |   |
|   | 10.13  | *           | First Amendment to Amended and Restated Employment Agreement between William J. Wagner and Chicopee Bancorp, Inc. (3) |
|   |   |        |   |
|   | 10.14  | *           | First Amendment to Amended and Restated Employment Agreement between William J. Wagner and Chicopee Savings Bank (3) |
|   |   |        |   |
|   | 10.15  | *           | Change in Control Agreement between Chicopee Savings Bank and Guida R. Sajdak (4) |
|   |   |        |   |
|   | 10.16  | *           | Employment Agreement between Chicopee Bancorp, Inc. and Russell J. Omer (4) |
|   |   |        |   |
|   | 10.17  | *           | Employment Agreement between Chicopee Savings Bank and Russell J. Omer (4) |

----

|   | 21.0   |   | List of Subsidiaries                                              |
|--------|--------|--------|-------------------------------------------------------------------|
|   |   |   |                                                              |
|   | 23.0   |   | Consent of Berry, Dunn, McNeil & Parker                       |
|   |   |   |                                                              |
|   | 31.1   |   | Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer |

|   | 31.2   |   | Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer                 |
|--------|--------|--------|-----------------------------------------------------------------------------------|
|   |   |   |                                                                              |
|   | 32.0   |   | Section 1350 Certification of Chief Executive Officer and Chief Financial Officer |

----

|  *  | Management contract or compensatory plan, contract or agreement.                                                                                                                                                                                      |
|---------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| (1)           | Incorporated by reference in this document to the exhibits to the Company’s Registration Statement on Form S-1 (File No. 333-132512) and any amendments thereto, initially filed with the Securities and Exchange Commission on March 17, 2006. |
| (2)           | Incorporated by reference in this document to the Company’s Current Report on Form 8-K filed on August 1, 2007 (File No. 000-51996).                                                                                                            |
| (3)           | Incorporated by reference in this document to the Company’s Annual Report on Form 10-K for the year ended December 31, 2009, filed on March 13, 2009 (File No. 000-51996).                                                                      |
| (4)           | Incorporated by reference to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on June 22, 2010.                                                                                                       |

----

SIGNATURES

| Chicopee Bancorp, Inc. |
|------------------------|
|                   |
|                   |   |   |
| By:                    | /s/ William J. Wagner | March 15, 2011 |
|                   | William J. Wagner |   |
|                   | Chairman of the Board, President and Chief Executive Officer |   |

|                       |                             |                                     |
|----------------------------|----------------------------------|------------------------------------------|
| Name                       | Title                            |       Date |
|                       |                             |                                     |
| /s/ William J. Wagner      | Chairman of the Board, President | March 15, 2011                           |
| William J. Wagner          | and Chief Executive Officer      |                                     |
|                       | (principal executive officer)    |                                     |
|                       |                             |                                     |
| /s/ Guida R. Sajdak        | Senior Vice President, Chief     | March 15, 2011                           |
| Guida R. Sajdak            | Financial Officer and Treasurer  |                                     |
|                       | (principal financial and chief   |                                     |
|                       | accounting officer)              |                                     |
|                       |                             |                                     |
| /s/ James P. Lynch         | Director                         | March 15, 2011                           |
| James P. Lynch             |                             |                                     |
|                       |                             |                                     |
| /s/ William D. Masse       | Director                         | March 15, 2011                           |
| William D. Masse           |                             |                                     |
|                       |                             |                                     |
| /s/ Arthur F. DuBois       | Director                         | March 15, 2011                           |
| Arthur F. DuBois           |                             |                                     |
|                       |                             |                                     |
| /s/ William J. Giokas      | Director                         | March 15, 2011                           |
| William J. Giokas          |                             |                                     |
|                       |                             |                                     |
| /s/ John P. Moylan         | Director                         | March 15, 2011                           |
| John P. Moylan             |                             |                                     |
|                       |                             |                                     |
| /s/ Gregg F. Orlen         | Director                         | March 15, 2011                           |
| Gregg F. Orlen             |                             |                                     |
|                       |                             |                                     |
| /s/ Judith T. Tremble      | Director                         | March 15, 2011                           |
| Judith T. Tremble          |                             |                                     |
|                       |                             |                                     |
| /s/ Thomas J. Bardon       | Director                         | March 15, 2011                           |
| Thomas J. Bardon           |                             |                                     |
|                       |                             |                                     |
| /s/ James H. Bugbee        | Director                         | March 15, 2011                           |
| James H. Bugbee            |                             |                                     |
|                       |                             |                                     |
| /s/ Louis E. Dupuis        | Director                         | March 15, 2011                           |
| Louis E. Dupuis            |                             |                                     |
|                       |                             |                                     |
| /s/ Douglas K. Engebretson | Director                         | March 15, 2011                           |
| Douglas K. Engebretson     |                             |                                     |
|                       |                             |                                     |
| /s/ Gary G. Fitzgerald     | Director                         | March 15, 2011                           |
| Gary G. Fitzgerald         |                             |                                     |
|                       |                             |                                     |
| /s/ Paul C. Picknelly      | Director                         | March 15, 2011                           |
| Paul C. Picknelly          |                             |                                     |

----

----

----

----

| CHICOPEE BANCORP, INC. AND SUBSIDIARIES                                                                 |   |
|---------------------------------------------------------------------------------------------------------|--------|
|                                                                                                    |   |
| CONSOLIDATED BALANCE SHEETS                                                                             |   |
|                                                                                                    |   |   |   |   |   |   |
|                                                                                                    |   | December 31, |   |
| ASSETS                                                                                                  |   | 2010 |   |   | 2009 |   |
|                                                                                                    |   | (In thousands, except share data) |   |
|                                                                                                    |   |   |   |   |   |   |
| Cash and due from banks                                                                                 |   | $ | 6,903 |   |   | $ | 9,757 |   |
| Short-term investments                                                                                  |   |   | - |   |   |   | 16 |   |
| Federal funds sold                                                                                      |   |   | 28,970 |   |   |   | 10,302 |   |
|          Cash and cash equivalents                         |   |   | 35,873 |   |   |   | 20,075 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Securities available-for-sale, at fair value                                                            |   |   | 362 |   |   |   | 503 |   |
| Securities held-to-maturity, at cost (fair value $69,912 and $63,130                                    |   |   |   |   |   |   |   |   |
|    at December 31, 2010 and 2009, respectively)                                               |   |   | 69,713 |   |   |   | 62,983 |   |
| Federal Home Loan Bank stock, at cost                                                                   |   |   | 4,489 |   |   |   | 4,306 |   |
| Loans receivable, net of allowance for loan losses ($4,431 at                                           |   |   |   |   |   |   |   |   |
|    December 31, 2010 and $4,077 at December 31, 2009)                                    |   |   | 430,307 |   |   |   | 424,655 |   |
| Loans held for sale                                                                                     |   |   | 1,888 |   |   |   | 534 |   |
| Other real estate owned                                                                                 |   |   | 286 |   |   |   | 80 |   |
| Mortgage servicing rights                                                                               |   |   | 306 |   |   |   | 297 |   |
| Bank owned life insurance                                                                               |   |   | 13,032 |   |   |   | 12,610 |   |
| Premises and equipment, net                                                                             |   |   | 10,340 |   |   |   | 10,652 |   |
| Accrued interest receivable                                                                             |   |   | 1,897 |   |   |   | 1,629 |   |
| Deferred income tax asset                                                                               |   |   | 2,469 |   |   |   | 2,112 |   |
| FDIC prepaid insurance                                                                                  |   |   | 1,361 |   |   |   | 1,783 |   |
| Other assets                                                                                            |   |   | 1,381 |   |   |   | 1,931 |   |
|          Total assets                                      |   | $ | 573,704 |   |   | $ | 544,150 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                                    |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Deposits                                                                                                |   |   |   |   |   |   |   |   |
|    Noninterest-bearing                                                                        |   | $ | 48,302 |   |   | $ | 42,629 |   |
|    Interest-bearing                                                                      |   |   | 343,635 |   |   |   | 322,869 |   |
|          Total deposits                                    |   |   | 391,937 |   |   |   | 365,498 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Securities sold under agreements to repurchase                                                          |   |   | 17,972 |   |   |   | 20,422 |   |
| Advances from Federal Home Loan Bank                                                                    |   |   | 71,615 |   |   |   | 63,675 |   |
| Accrued expenses and other liabilities                                                                  |   |   | 298 |   |   |   | 383 |   |
|          Total liabilities                                 |   |   | 481,822 |   |   |   | 449,978 |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Commitments and contingencies (Notes 10, 11, 12, 13, 14, 15, 16 and 17)                                 |   |   |   |   |   |   |   |   |
|                                                                                                    |   |   |   |   |   |   |   |   |
| Stockholders' equity                                                                                    |   |   |   |   |   |   |   |   |
|     Common stock (no par value, 20,000,000 shares authorized,                       |   |   |   |   |   |   |   |   |
|       7,439,368 shares issued at December 31, 2010 and December 31, 2009) |   |   | 72,479 |   |   |   | 72,479 |   |
|     Treasury stock, at cost (1,427,390 shares at December 31, 2010 and              |   |   |   |   |   |   |   |   |
|       1,060,338 shares at December 31, 2009)                              |   |   | (18,295 | ) |   |   | (13,951 | ) |
|     Additional paid-in capital                                                      |   |   | 2,255 |   |   |   | 1,765 |   |
|     Unearned compensation (restricted stock awards)                                 |   |   | (1,431 | ) |   |   | (2,269 | ) |
|     Unearned compensation (Employee Stock Ownership Plan)                           |   |   | (4,463 | ) |   |   | (4,761 | ) |
|     Retained earnings                                                               |   |   | 41,308 |   |   |   | 40,843 |   |
|     Accumulated other comprehensive income                                          |   |   | 29 |   |   |   | 66 |   |
|          Total stockholders' equity                        |   |   | 91,882 |   |   |   | 94,172 |   |
|          Total liabilities and stockholders' equity        |   | $ | 573,704 |   |   | $ | 544,150 |   |

----

| CHICOPEE BANCORP, INC. AND SUBSIDIARIES                                                                                                                                                            |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                               |   |
| CONSOLIDATED STATEMENTS OF OPERATIONS                                                                                                                                                              |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                               |   | Years Ended December 31, |   |
|                                                                                                                                                                                               |   | 2010 |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                                                               |   | (In thousands, except share data) |   |
| Interest and dividend income:                                                                                                                                                                      |   |   |   |   |   |   |   |   |   |
|     Loans, including fees                                                                                                                                                      |   | $ | 23,537 |   |   | $ | 23,676 |   |   | $ | 24,125 |   |
|     Interest and dividends on securities                                                                                                                                       |   |   | 1,288 |   |   |   | 809 |   |   |   | 1,254 |   |
|     Other interest-earning assets                                                                                                                                              |   |   | 32 |   |   |   | 29 |   |   |   | 404 |   |
|                Total interest and dividend income                                                                       |   |   | 24,857 |   |   |   | 24,514 |   |   |   | 25,783 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Interest expense:                                                                                                                                                                                  |   |   |   |   |   |   |   |   |   |   |   |   |
|     Deposits                                                                                                                                                                   |   |   | 5,930 |   |   |   | 7,205 |   |   |   | 9,391 |   |
|     Securities sold under agreements to repurchase                                                                                                                             |   |   | 68 |   |   |   | 210 |   |   |   | 348 |   |
|     Other borrowed funds                                                                                                                                                       |   |   | 2,018 |   |   |   | 1,692 |   |   |   | 1,450 |   |
|                Total interest expense                                                                                   |   |   | 8,016 |   |   |   | 9,107 |   |   |   | 11,189 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Net interest income                                                                                                                                                                                |   |   | 16,841 |   |   |   | 15,407 |   |   |   | 14,594 |   |
| Provision for loan losses                                                                                                                                                                          |   |   | 1,223 |   |   |   | 897 |   |   |   | 315 |   |
| Net interest income, after provision for loan losses                                                                                                                                               |   |   | 15,618 |   |   |   | 14,510 |   |   |   | 14,279 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest income:                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|     Service charges, fee and commissions                                                                                                                                       |   |   | 1,716 |   |   |   | 1,507 |   |   |   | 1,602 |   |
|     Loan sales and servicing, net                                                                                                                                              |   |   | 365 |   |   |   | 629 |   |   |   | (13 | ) |
|     Net gain (loss) on sales of securities available-for-sale                                                                                                                  |   |   | 158 |   |   |   | 382 |   |   |   | (47 | ) |
|     Loss on sales of other than temporarily impaired securities                                                                                                                |   |   | - |   |   |   | (241 | ) |   |   | (10 | ) |
|     Loss on sale of other real estate owned                                                                                                                                    |   |   | (22 | ) |   |   | (28 | ) |   |   | - |   |
|     Other than temporary impairment charge                                                                                                                                     |   |   | (13 | ) |   |   | (1,403 | ) |   |   | - |   |
|     Income from bank owned life insurance                                                                                                                                      |   |   | 422 |   |   |   | 466 |   |   |   | 469 |   |
|                Total non-interest income                                                                                |   |   | 2,626 |   |   |   | 1,312 |   |   |   | 2,001 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Non-interest expenses:                                                                                                                                                                             |   |   |   |   |   |   |   |   |   |   |   |   |
|     Salaries and employee benefits                                                                                                                                             |   |   | 10,407 |   |   |   | 10,258 |   |   |   | 9,496 |   |
|     Occupancy expenses                                                                                                                                                         |   |   | 1,551 |   |   |   | 1,607 |   |   |   | 1,152 |   |
|     Furniture and equipment                                                                                                                                                    |   |   | 1,022 |   |   |   | 1,139 |   |   |   | 974 |   |
|     FDIC insurance assessment                                                                                                                                                  |   |   | 422 |   |   |   | 501 |   |   |   | 47 |   |
|     Data processing                                                                                                                                                            |   |   | 1,207 |   |   |   | 1,089 |   |   |   | 907 |   |
|     Professional fees                                                                                                                                                          |   |   | 577 |   |   |   | 504 |   |   |   | 729 |   |
|     Advertising                                                                                                                                                                |   |   | 501 |   |   |   | 514 |   |   |   | 488 |   |
|     Stationery, supplies and postage                                                                                                                                           |   |   | 315 |   |   |   | 383 |   |   |   | 351 |   |
|     Other non-interest expense                                                                                                                                                 |   |   | 2,007 |   |   |   | 2,050 |   |   |   | 1,738 |   |
|                Total non-interest expenses                                                                              |   |   | 18,009 |   |   |   | 18,045 |   |   |   | 15,882 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Income (loss) before income taxes                                                                                                                                                                  |   |   | 235 |   |   |   | (2,223 | ) |   |   | 398 |   |
| Income tax (benefit) expense                                                                                                                                                                       |   |   | (230 | ) |   |   | (627 | ) |   |   | 376 |   |
|                Net income (loss)                                                                                        |   | $ | 465 |   |   | $ | (1,596 | ) |   | $ | 22 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share: (1)                                                                                                                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |
|      Basic                                                                                                                                                                     |   | $ | 0.08 |   |   | $ | (0.28 | ) |   | $ | - |   |
|      Diluted                                                                                                                                                              |   | $ | 0.08 |   |   | $ | (0.28 | ) |   | $ | - |   |
| Adjusted weighted average common shares outstanding                                                                                                                                                |   |   |   |   |   |   |   |   |   |   |   |   |
|      Basic                                                                                                                                                                |   |   | 5,662,864 |   |   |   | 5,715,618 |   |   |   | 5,986,141 |   |
|      Diluted                                                                                                                                                              |   |   | 5,668,596 |   |   |   | 5,715,618 |   |   |   | 5,986,427 |   |
|                                                                                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
| (1) Common stock equivalents are excluded from the computation of diluted net loss per share for the year ended December 31, 2009, since the inclusion of such equivalents would be anti-dilutive. |   |
|                                                                                                                                                                                               |   |

----

| CHICOPEE BANCORP, INC. AND SUBSIDIARIES                                                 |   |
|-----------------------------------------------------------------------------------------|--------|
|                                                                                    |   |
| CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY                              |   |
|                                                                                    |   |
| Years Ended December 31, 2010, 2009 and 2008                                            |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   | Unearned |   |   |   |   |   |   |   |   | Accumulated |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   | Additional |   |   | Compensation |   |   | Unearned |   |   |   |   |   | Other |   |   |   |   |
|                                                                                    |   | Common |   |   | Treasury |   |   | Paid-in |   |   | (restricted |   |   | Compensation |   |   | Retained |   |   | Comprehensive |   |   |   |   |
|                                                                                    |   | Stock |   |   | Stock |   |   | Capital |   |   | stock awards) |   |   | (ESOP) |   |   | Earnings |   |   | (Loss) Income |   |   | Total |   |
|                                                                                    |   | (In thousands, except number of shares) |   |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance at December 31, 2007                                                            |   | $ | 72,479 |   |   | $ | (2,108 | ) |   | $ | 573 |   |   | $ | (3,940 | ) |   | $ | (5,356 | ) |   | $ | 42,417 |   |   | $ | 234 |   |   | $ | 104,299 |   |
| Comprehensive loss:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 22 |   |   |   | - |   |   |   | 22 |   |
| Change in net unrealized gain on                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   securities available-for-sale (net of                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   deferred income taxes of $886)                                         |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,654 | ) |   |   | (1,654 | ) |
|            Total comprehensive loss   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (1,632 | ) |
| Treasury stock purchased (787,615                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    shares)                                                                    |   |   | - |   |   |   | (10,375 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (10,375 | ) |
| Change in unearned compensation:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Stock option expense                                                             |   |   | - |   |   |   | - |   |   |   | 514 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 514 |   |
|   Restricted stock award expense                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 833 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 833 |   |
|   Common stock held by ESOP                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     committed to be released                                             |   |   | - |   |   |   | - |   |   |   | 81 |   |   |   | - |   |   |   | 297 |   |   |   | - |   |   |   | - |   |   |   | 378 |   |
| Balance at December 31, 2008                                                            |   | $ | 72,479 |   |   | $ | (12,483 | ) |   | $ | 1,168 |   |   | $ | (3,107 | ) |   | $ | (5,059 | ) |   | $ | 42,439 |   |   | $ | (1,420 | ) |   | $ | 94,017 |   |
| Comprehensive loss:                                                                     |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss                                                                                |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,596 | ) |   |   | - |   |   |   | (1,596 | ) |
| Change in net unrealized loss on                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   securities available-for-sale (net of                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   deferred tax expense of $795)                                                    |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 1,486 |   |   |   | 1,486 |   |
|            Total comprehensive loss   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | (110 | ) |
| Treasury stock purchased (117,723                                                  |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   shares)                                                                          |   |   | - |   |   |   | (1,468 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (1,468 | ) |
| Change in unearned compensation:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Stock option expense                                                        |   |   | - |   |   |   | - |   |   |   | 524 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 524 |   |
|   Restricted stock award expense                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 838 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 838 |   |
|   Common stock held by ESOP                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     committed to be released                                             |   |   | - |   |   |   | - |   |   |   | 73 |   |   |   | - |   |   |   | 298 |   |   |   | - |   |   |   | - |   |   |   | 371 |   |
| Balance at December 31, 2009                                                            |   | $ | 72,479 |   |   | $ | (13,951 | ) |   | $ | 1,765 |   |   | $ | (2,269 | ) |   | $ | (4,761 | ) |   | $ | 40,843 |   |   | $ | 66 |   |   | $ | 94,172 |   |
| Comprehensive income:                                                                   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net income                                                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 465 |   |   |   | - |   |   |   | 465 |   |
| Change in net unrealized gain on                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   securities available-for-sale (net of                                            |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   deferred income taxes of $20)                                               |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (37 | ) |   |   | (37 | ) |
|            Total comprehensive income |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   | 428 |   |
| Treasury stock purchased (367,052                                                       |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   shares)                                                                          |   |   | - |   |   |   | (4,344 | ) |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | (4,344 | ) |
| Change in unearned compensation:                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Stock option expense                                                        |   |   | - |   |   |   | - |   |   |   | 432 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 432 |   |
|   Restricted stock award expense                                              |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 838 |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 838 |   |
|   Common stock held by ESOP                                                        |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     committed to be released                                             |   |   | - |   |   |   | - |   |   |   | 58 |   |   |   | - |   |   |   | 298 |   |   |   | - |   |   |   | - |   |   |   | 356 |   |
| Balance at December 31, 2010                                                            |   | $ | 72,479 |   |   | $ | (18,295 | ) |   | $ | 2,255 |   |   | $ | (1,431 | ) |   | $ | (4,463 | ) |   | $ | 41,308 |   |   | $ | 29 |   |   | $ | 91,882 |   |

----

| CHICOPEE BANCORP, INC. AND SUBSIDIARIES                                                                                                                                                                      |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
|                                                                                                                                                                                                         |   |
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                                                                                                                                        |   |
|                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |
|                                                                                                                                                                                                         |   | Years Ended December 31, |   |
|                                                                                                                                                                                                         |   | 2010 |   |   | 2009 |   |   | 2008 |   |
| Cash flows from operating activities:                                                                                                                                                                        |   | (In thousands) |   |
|     Net income (loss)                                                                                                                                                                    |   | $ | 465 |   |   | $ | (1,596 | ) |   | $ | 22 |   |
|     Adjustments to reconcile net income (loss) to net cash                                                                                                                               |   |   |   |   |   |   |   |   |   |   |   |   |
|        provided (used) by operating activities:                                                                                                                           |   |   |   |   |   |   |   |   |   |   |   |   |
|           Depreciation and amortization                                                                                                                    |   |   | 1,007 |   |   |   | 1,145 |   |   |   | 1,095 |   |
|           Provision for loan losses                                                                                                                        |   |   | 1,223 |   |   |   | 897 |   |   |   | 315 |   |
|           Increase in cash surrender value of life insurance                                                                                               |   |   | (422 | ) |   |   | (466 | ) |   |   | (469 | ) |
|           Realized (gains) losses on investment securities, net                                                                                            |   |   | (158 | ) |   |   | (382 | ) |   |   | 47 |   |
|           Realized losses on other than temporarily impaired securities                                                                                    |   |   | - |   |   |   | 241 |   |   |   | 10 |   |
|           Other than temporary impairment charge                                                                                                           |   |   | 13 |   |   |   | 1,403 |   |   |   | - |   |
|           Realized losses on disposal of property and equipment                                                                                            |   |   | - |   |   |   | - |   |   |   | 1 |   |
|           Realized gains on sales of loans                                                                                                                 |   |   | (169 | ) |   |   | (352 | ) |   |   | (22 | ) |
|           Net loss on sales of other real estate owned                                                                                                     |   |   | 22 |   |   |   | 28 |   |   |   | - |   |
|           Net change in loans originated for resale                                                                                                        |   |   | (1,354 | ) |   |   | (349 | ) |   |   | (185 | ) |
|           Deferred income tax (benefit) expense                                                                                                            |   |   | (337 | ) |   |   | (473 | ) |   |   | 363 |   |
|           Decrease (increase) in FDIC prepaid insurance                                                                                                    |   |   | 422 |   |   |   | (1,783 | ) |   |   | - |   |
|           Decrease (increase) in other assets                                                                                                              |   |   | 587 |   |   |   | (5 | ) |   |   | (1,045 | ) |
|           (Increase) decrease in accrued interest and dividends receivable                                                                                 |   |   | (268 | ) |   |   | (52 | ) |   |   | 175 |   |
|           Decrease in other liabilities                                                                                                                    |   |   | (85 | ) |   |   | (9 | ) |   |   | (740 | ) |
|           Change in unearned compensation                                                                                                                  |   |   | 1,626 |   |   |   | 1,733 |   |   |   | 1,725 |   |
|                           Net cash provided (used) by operating activities |   |   | 2,572 |   |   |   | (20 | ) |   |   | 1,292 |   |
|                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|     Additions to premises and equipment                                                                                                                                                  |   |   | (582 | ) |   |   | (1,012 | ) |   |   | (4,469 | ) |
|     Loan originations and principal collections, net                                                                                                                                     |   |   | (7,479 | ) |   |   | (9,754 | ) |   |   | (36,792 | ) |
|     Proceeds from sales or paydowns of other real estate owned                                                                                                                           |   |   | 376 |   |   |   | 439 |   |   |   | - |   |
|     Proceeds from sales of securities available-for-sale                                                                                                                                 |   |   | 228 |   |   |   | 8,086 |   |   |   | 2,595 |   |
|     Proceeds from calls of securities held-to-maturity                                                                                                                                   |   |   | - |   |   |   | 5,000 |   |   |   | - |   |
|     Purchases of securities available-for-sale                                                                                                                                           |   |   | - |   |   |   | (2,301 | ) |   |   | (2,780 | ) |
|     Purchases of securities held-to-maturity                                                                                                                                             |   |   | (114,100 | ) |   |   | (132,035 | ) |   |   | (327,157 | ) |
|     Maturities of securities held-to-maturity                                                                                                                                            |   |   | 105,072 |   |   |   | 112,800 |   |   |   | 304,724 |   |
|     Proceeds from principal paydowns of securities held-to-maturity                                                                                                                      |   |   | 2,309 |   |   |   | 935 |   |   |   | - |   |
|     Net purchase of FHLB stock                                                                                                                                                           |   |   | (183 | ) |   |   | - |   |   |   | (2,723 | ) |
|                           Net cash used in investing activities            |   |   | (14,359 | ) |   |   | (17,842 | ) |   |   | (66,602 | ) |
|                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities:                                                                                                                                                                        |   |   |   |   |   |   |   |   |   |   |   |   |
|     Net increase in deposits                                                                                                                                                             |   |   | 26,439 |   |   |   | 30,731 |   |   |   | 8,694 |   |
|     Net (decrease) increase in securities sold under agreements to repurchase                                                                                                            |   |   | (2,450 | ) |   |   | (1,534 | ) |   |   | 7,777 |   |
|     Proceeds from long-term FHLB advances                                                                                                                                                |   |   | 24,500 |   |   |   | 29,000 |   |   |   | 52,000 |   |
|     Payments on long-term FHLB advances                                                                                                                                                  |   |   | (16,560 | ) |   |   | (31,892 | ) |   |   | (3,207 | ) |
|     Net (decrease) increase in short-term advances                                                                                                                                       |   |   | - |   |   |   | (10,000 | ) |   |   | 10,000 |   |
|     Stock purchased for treasury                                                                                                                                                         |   |   | (4,344 | ) |   |   | (1,468 | ) |   |   | (10,375 | ) |
|                           Net cash provided by financing activities        |   |   | 27,585 |   |   |   | 14,837 |   |   |   | 64,889 |   |
|                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                                                                         |   |   | 15,798 |   |   |   | (3,025 | ) |   |   | (421 | ) |
|                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                                                                                                                                               |   |   | 20,075 |   |   |   | 23,100 |   |   |   | 23,521 |   |
|                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                                                                                                                                     |   | $ | 35,873 |   |   | $ | 20,075 |   |   | $ | 23,100 |   |
|                                                                                                                                                                                                         |   |   |   |   |   |   |   |   |   |   |   |   |
| Supplemental cash flow information:                                                                                                                                                                          |   |   |   |   |   |   |   |   |   |   |   |   |
|     Interest paid on deposits                                                                                                                                                            |   | $ | 5,930 |   |   | $ | 7,205 |   |   | $ | 9,391 |   |
|     Interest paid on borrowings                                                                                                                                                          |   |   | 2,099 |   |   |   | 1,865 |   |   |   | 1,701 |   |
|     Income taxes paid                                                                                                                                                                    |   |   | 239 |   |   |   | 63 |   |   |   | 822 |   |
|     Transfers from loans to other real estate owned                                                                                                                                      |   |   | 566 |   |   |   | 277 |   |   |   | 269 |   |

----

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|                                                      |   | Years Ended December 31, |       |
|-----------------------------------------------------------|--------|--------------------------|------------|
|                                                      |   | 2010                     |       |   | 2009 |   |   | 2008 |   |
|                                                      |   |                     |       |   |   |   |   |   |   |
| Net income (loss) (in thousands)                          |   | $                        | 465        |   |   | $ | (1,596 | ) |   | $ | 22 |   |
|                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Weighted average number of common shares                  |   |                     |       |   |   |   |   |   |   |   |   |   |
| issued                                                    |   |                     | 7,439,368  |   |   |   | 7,439,368 |   |   |   | 7,439,368 |   |
| Less: average number of treasury shares                   |   |                     | (1,149,876 | ) |   |   | (1,008,680 | ) |   |   | (649,241 | ) |
| Less: average number of unallocated ESOP shares           |   |                     | (476,121   | ) |   |   | (505,878 | ) |   |   | (535,635 | ) |
| Less: average number of nonvested restricted stock awards |   |                     | (150,507   | ) |   |   | (209,192 | ) |   |   | (268,351 | ) |
|                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Adjusted weighted average number of common                |   |                     |       |   |   |   |   |   |   |   |   |   |
| shares outstanding                                        |   |                     | 5,662,864  |   |   |   | 5,715,618 |   |   |   | 5,986,141 |   |
| Plus: dilutive nonvested restricted stock awards          |   |                     | 5,732      |   |   |   | - |   |   |   | 286 |   |
| Weighted average number of diluted shares outstanding     |   |                     | 5,668,596  |   |   |   | 5,715,618 |   |   |   | 5,986,427 |   |
|                                                      |   |                     |       |   |   |   |   |   |   |   |   |   |
| Net income (loss) per share:                              |   |                     |       |   |   |   |   |   |   |   |   |   |
| Basic- common stock                                       |   | $                        | 0.08       |   |   | $ | (0.28 | ) |   | $ | - |   |
| Basic- unvested share-based payment awards                |   | $                        | 0.08       |   |   | $ | (0.28 | ) |   | $ | - |   |
| Diluted- common stock                                     |   | $                        | 0.08       |   |   | $ | (0.28 | ) |   | $ | - |   |
| Diluted- unvested share-based payment awards              |   | $                        | 0.08       |   |   | $ | (0.28 | ) |   | $ | - |   |

|                                                       |   | Years Ended December 31, |   |
|------------------------------------------------------------|--------|--------------------------|--------|
|                                                       |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                       |   | (In Thousands)           |   |
| Unrealized holding gains (losses) on available-for-sale    |   |                     |   |   |   |   |   |   |   |
|     securities arising during the year |   | $                        | 88     |   |   | $ | 1,019 |   |   | $ | (2,597 | ) |
| Other than temporary impairment charge realized in income  |   |                     | 13     |   |   |   | 1,403 |   |   |   | - |   |
| Reclassification adjustment for (gains) losses             |   |                     |   |   |   |   |   |   |   |   |   |   |
|     realized in income                 |   |                     | (158   | ) |   |   | (141 | ) |   |   | 57 |   |
| Net unrealized holding (losses) gains                      |   |                     | (57    | ) |   |   | 2,281 |   |   |   | (2,540 | ) |
| Tax effect                                                 |   |                     | 20     |   |   |   | (795 | ) |   |   | 886 |   |
|                                                       |   |                     |   |   |   |   |   |   |   |   |   |   |
| Other comprehensive (loss) income                          |   | $                        | (37    | ) |   | $ | 1,486 |   |   | $ | (1,654 | ) |

----

|                                                                          |   | December 31,   |   |
|-------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                          |   | 2010           |   |   | 2009 |   |
|                                                                          |   | (In Thousands) |   |
| Net unrealized gain on securities                                             |   |           |   |   |   |   |
|     available-for-sale                                    |   | $              | 43     |   |   | $ | 101 |   |
|     Tax effect                                            |   |           | (14    | ) |   |   | (35 | ) |
|                                                                          |   |           |   |   |   |   |   |   |
|           Net-of-tax amount |   | $              | 29     |   |   | $ | 66 |   |

----

----

|                                                              |   | December 31, 2010 |   |
|-------------------------------------------------------------------|--------|-------------------|--------|
|                                                              |   |              |   |   | Gross |   |   | Gross |   |   |   |   |
|                                                              |   | Amortized         |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                                              |   | Cost              |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                                              |   | (In Thousands)    |   |
| Securities available-for-sale                                     |   |              |   |   |   |   |   |   |   |   |   |   |
|   Marketable equity securities1                    |   | $                 | 319    |   |   | $ | 43 |   |   | $ | - |   |   | $ | 362 |   |
|      Total securities available-for-sale |   | $                 | 319    |   |   | $ | 43 |   |   | $ | - |   |   | $ | 362 |   |
|                                                              |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities held-to-maturity                                       |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   U.S. Treasury securities                              |   | $                 | 30,817 |   |   | $ | - |   |   | $ | (1 | ) |   | $ | 30,816 |   |
|   Corporate and industrial                              |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      revenue bonds                       |   |              | 23,348 |   |   |   | - |   |   |   | - |   |   |   | 23,348 |   |
|   Certificates of deposit                               |   |              | 11,725 |   |   |   | - |   |   |   | - |   |   |   | 11,725 |   |
|   Collateralized mortgage obligations                   |   |              | 3,823  |   |   |   | 200 |   |   |   | - |   |   |   | 4,023 |   |
|      Total securities held-to-maturity   |   | $                 | 69,713 |   |   | $ | 200 |   |   | $ | (1 | ) |   | $ | 69,912 |   |

|                                                                                                                                                                                                   |   | December 31, 2009 |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|-------------------|--------|
|                                                                                                                                                                                                   |   |              |   |   | Gross |   |   | Gross |   |   |   |   |
|                                                                                                                                                                                                   |   | Amortized         |   |   | Unrealized |   |   | Unrealized |   |   | Fair |   |
|                                                                                                                                                                                                   |   | Cost              |   |   | Gains |   |   | Losses |   |   | Value |   |
|                                                                                                                                                                                                   |   | (In Thousands)    |   |
| Securities available-for-sale                                                                                                                                                                          |   |              |   |   |   |   |   |   |   |   |   |   |
|   Marketable equity securities1                                                                                                                                                         |   | $                 | 402    |   |   | $ | 116 |   |   | $ | (15 | ) |   | $ | 503 |   |
|      Total securities available-for-sale                                                                                                                                      |   | $                 | 402    |   |   | $ | 116 |   |   | $ | (15 | ) |   | $ | 503 |   |
|                                                                                                                                                                                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities held-to-maturity                                                                                                                                                                            |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|   Debt securities of U.S. Government                                                                                                                                                         |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      sponsored enterprises                                                                                                                                                    |   | $                 | 1,999  |   |   | $ | - |   |   | $ | - |   |   | $ | 1,999 |   |
|   U.S. Treasury securities                                                                                                                                                                   |   |              | 43,118 |   |   |   | 3 |   |   |   | (4 | ) |   |   | 43,117 |   |
|   Corporate and industrial                                                                                                                                                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      revenue bonds                                                                                                                                                            |   |              | 12,109 |   |   |   | - |   |   |   | - |   |   |   | 12,109 |   |
|   Collateralized mortgage obligations                                                                                                                                                        |   |              | 5,757  |   |   |   | 153 |   |   |   | (5 | ) |   |   | 5,905 |   |
|      Total securities held-to-maturity                                                                                                                                        |   | $                 | 62,983 |   |   | $ | 156 |   |   | $ | (9 | ) |   | $ | 63,130 |   |
|                                                                                                                                                                                                   |   |              |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| 1 Marketable equity securities does not include FHLB-Boston stock of $4.5 million and $4.3 million and Banker's Bank stock of $183,000 and $183,000, respectively, at December 31, 2010 and 2009. |   |

----

|               |   | Held-to-Maturity |   |
|--------------------|--------|------------------|--------|
|               |   | Amortized        |   |   |   |   |
|               |   | Cost             |   |   | Fair Value |   |
|               |   | (In Thousands)   |   |
| Within 1 year      |   | $                | 42,542 |   |   | $ | 42,541 |   |
| From 1 to 5 years  |   |             | 3,243  |   |   |   | 3,243 |   |
| From 5 to 10 years |   |             | 12,123 |   |   |   | 12,323 |   |
| Over 10 years      |   |             | 11,805 |   |   |   | 11,805 |   |
|               |   |             |   |   |   |   |   |   |
|               |   | $                | 69,713 |   |   | $ | 69,912 |   |

----

|                                                          |   | December 31, 2010       |   |
|---------------------------------------------------------------|--------|-------------------------|--------|
|                                                          |   | Less Than Twelve Months |   |   | Twelve Months and Over |   |   | Total |   |
|                                                          |   | (In Thousands)          |   |
|                                                          |   |                    |   |   | Gross |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|                                                          |   | Fair                    |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                                          |   | Value                   |   |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
| U.S. Treasury securities                                      |   | $                       | 17,995 |   |   | $ | (1 | ) |   | $ | - |   |   | $ | - |   |   | $ | 17,995 |   |   | $ | (1 | ) |
|     Total temporarily impaired securities |   | $                       | 17,995 |   |   | $ | (1 | ) |   | $ | - |   |   | $ | - |   |   | $ | 17,995 |   |   | $ | (1 | ) |

|                                                          |   | December 31, 2009       |   |
|---------------------------------------------------------------|--------|-------------------------|--------|
|                                                          |   | Less Than Twelve Months |   |   | Twelve Months and Over |   |   | Total |   |
|                                                          |   | (In Thousands)          |   |
|                                                          |   |                    |   |   | Gross |   |   |   |   |   | Gross |   |   |   |   |   | Gross |   |
|                                                          |   | Fair                    |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |   | Fair |   |   | Unrealized |   |
|                                                          |   | Value                   |   |   | Losses |   |   | Value |   |   | Losses |   |   | Value |   |   | Losses |   |
| Marketable equity securities                                  |   | $                       | -      |   |   | $ | - |   |   | $ | 311 |   |   | $ | (15 | ) |   | $ | 311 |   |   | $ | (15 | ) |
| U.S. Treasury securities                                      |   |                    | 19,436 |   |   |   | (4 | ) |   |   | - |   |   |   | - |   |   |   | 19,436 |   |   |   | (4 | ) |
| Collateralized mortgage obligations                           |   |                    | 190    |   |   |   | (5 | ) |   |   | - |   |   |   | - |   |   |   | 190 |   |   |   | (5 | ) |
|     Total temporarily impaired securities |   | $                       | 19,626 |   |   | $ | (9 | ) |   | $ | 311 |   |   | $ | (15 | ) |   | $ | 19,937 |   |   | $ | (24 | ) |

----

----

|                                                                                                          |   | December 31, 2010 |    |   | December 31, 2009 |   |
|---------------------------------------------------------------------------------------------------------------|--------|-------------------|---------|--------|-------------------|--------|
|                                                                                                          |   |              |    |   | Percent           |   |   |   |   |   | Percent |   |
|                                                                                                          |   | Amount            |    |   | of Total          |   |   | Amount |   |   | of Total |   |
|                                                                                                          |   | (In Thousands)    |    |
|                                                                                                          |   |              |    |   |              |   |   |   |   |   |   |   |
| Real estate loans:                                                                                            |   |              |    |   |              |   |   |   |   |   |   |   |
| Residential real estate1                                                                                 |   | $                 | 132,670 |   |              |   | 30.6 | % |   | $ | 139,937 |   |   |   | 32.7 | % |
| Home equity                                                                                                   |   |              | 29,933  |   |              |   | 6.9 | % |   |   | 29,320 |   |   |   | 6.9 | % |
| Commercial                                                                                                    |   |              | 162,107 |   |              |   | 37.4 | % |   |   | 147,255 |   |   |   | 34.4 | % |
| Total                                                                                                         |   |              | 324,710 |   |              |   | 74.9 | % |   |   | 316,512 |   |   |   | 74.0 | % |
| Construction-residential                                                                                      |   |              | 6,428   |   |              |   | 1.5 | % |   |   | 9,192 |   |   |   | 2.1 | % |
| Construction-commercial                                                                                       |   |              | 26,643  |   |              |   | 6.1 | % |   |   | 29,121 |   |   |   | 6.9 | % |
| Total construction                                                                                            |   |              | 33,071  |   |              |   | 7.6 | % |   |   | 38,313 |   |   |   | 9.0 | % |
| Total real estate loans                                                                                       |   |              | 357,781 |   |              |   | 82.5 | % |   |   | 354,825 |   |   |   | 83.0 | % |
| Consumer loans                                                                                                |   |              | 3,165   |   |              |   | 0.7 | % |   |   | 4,390 |   |   |   | 1.0 | % |
| Commercial loans                                                                                              |   |              | 72,847  |   |              |   | 16.8 | % |   |   | 68,552 |   |   |   | 16.0 | % |
| Total loans                                                                                                   |   |              | 433,793 |   |              |   | 100.0 | % |   |   | 427,767 |   |   |   | 100.0 | % |
| Net deferred loan origination costs                                                                           |   |              | 945     |   |              |   |   |   |   |   | 965 |   |   |   |   |   |
| Allowance for loan losses                                                                                     |   |              | (4,431  | )      |              |   |   |   |   |   | (4,077 | ) |   |   |   |   |
| Loans, net                                                                                                    |   | $                 | 430,307 |   |              |   |   |   |   | $ | 424,655 |   |   |   |   |   |
|                                                                                                          |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
| 1 Excludes loans held for sale of $1.9 million and $534,000 at December 31, 2010 and 2009, respectively. |   |

----

|                   |   | Commercial Credit Risk Exposure |   |
|------------------------|--------|---------------------------------|--------|
|                   |   | Commercial                      |   |   | CommercialConstruction |   |   | CommercialReal Estate |   |   | Total |   |
|                   |   | (In Thousands)                  |   |
| Pass                   |   | $                               | 68,048 |   |   | $ | 10,484 |   |   | $ | 152,062 |   |   | $ | 230,594 |   |
| Special mention        |   |                            | 1,516  |   |   |   | 11,856 |   |   |   | 6,090 |   |   |   | 19,462 |   |
| Substandard            |   |                            | 3,283  |   |   |   | 4,303 |   |   |   | 3,955 |   |   |   | 11,541 |   |
| Doubtful               |   |                            | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Loss                   |   |                            | -      |   |   |   | - |   |   |   | - |   |   |   | - |   |
| Total commercial loans |   | $                               | 72,847 |   |   | $ | 26,643 |   |   | $ | 162,107 |   |   | $ | 261,597 |   |

|                           |   | Residential Credit Risk Exposure |    |
|--------------------------------|--------|----------------------------------|---------|
|                           |   | ResidentialReal Estate           |    |   | ResidentialConstruction |   |   |   |   |   | Total |   |
| Pass                           |   | $                                | 129,341 |   |   | $ | 6,112 |   |   |   |   |   |   | $ | 135,453 |   |
| Substandard (also, nonaccrual) |   |                             | 3,329   |   |   |   | 316 |   |   |   |   |   |   |   | 3,645 |   |
| Total residential loans        |   | $                                | 132,670 |   |   | $ | 6,428 |   |   |   |   |   |   | $ | 139,098 |   |

|                       |   | Consumer Credit Risk Exposure |   |
|----------------------------|--------|-------------------------------|--------|
|                       |   | Consumer                      |   |   | Home Equity |   |   |   |   |   | Total |   |
| Performing                 |   | $                             | 3,093  |   |   | $ | 29,729 |   |   |   |   |   |   | $ | 32,822 |   |
| Nonperforming (nonaccrual) |   |                          | 72     |   |   |   | 204 |   |   |   |   |   |   |   | 276 |   |
| Total consumer loans       |   | $                             | 3,165  |   |   | $ | 29,933 |   |   |   |   |   |   | $ | 33,098 |   |

|                         |   | Years Ended December 31, |   |
|------------------------------|--------|--------------------------|--------|
|                         |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                         |   | (In Thousands)           |   |
| Balance at beginning of year |   | $                        | 4,077  |   |   | $ | 3,333 |   |   | $ | 3,076 |   |
| Provision for loan losses    |   |                     | 1,223  |   |   |   | 897 |   |   |   | 315 |   |
| Recoveries                   |   |                     | 63     |   |   |   | 18 |   |   |   | 13 |   |
| Loans charged-off            |   |                     | (932   | ) |   |   | (171 | ) |   |   | (71 | ) |
|                         |   |                     |   |   |   |   |   |   |   |   |   |   |
| Balance at end of year       |   | $                        | 4,431  |   |   | $ | 4,077 |   |   | $ | 3,333 |   |

----

|                                           |   |                   |    |   |                    |   |   |                  |   |   |                   |   |   |       |   |   |          |   |   |       |   |   |   |   |
|------------------------------------------------|--------|------------------------|---------|--------|-------------------------|--------|--------|-----------------------|--------|--------|------------------------|--------|--------|------------|--------|--------|---------------|--------|--------|------------|--------|--------|--------|--------|
|                                           |   | ResidentialReal Estate |    |   | ResidentialConstruction |   |   | CommercialReal Estate |   |   | CommercialConstruction |   |   | Commercial |   |   | ConsumerLoans |   |   | HomeEquity |   |   | Total  |   |
|                                           |   | (In Thousands)         |    |
| Allowance for loan losses                 |   |                   |    |   |                    |   |   |                  |   |   |                   |   |   |       |   |   |          |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|   ending balance                     |   |                   |    |   |                    |   |   |                  |   |   |                   |   |   |       |   |   |          |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|   Collectively evaluated for              |   |                   |    |   |                    |   |   |                  |   |   |                   |   |   |       |   |   |          |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|     impairment                  |   | $                      | 349     |   |                    | $      | 86     |                  |   | $      | 1,632                  |   |   | $          | 374    |   |          | $      | 1,016  |       |   | $      | 28     |   |   | $ | 128 |   |   | $ | 3,613 |   |
|   Individually evalutated for             |   |                   |    |   |                    |   |   |                  |   |   |                   |   |   |       |   |   |          |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|     impairment                  |   |                   | 164     |   |                    |   | 62     |                  |   |   | 151                    |   |   |       | 28     |   |          |   | 413    |       |   |   | -      |   |   |   | - |   |   |   | 818 |   |
|                                           |   | $                      | 513     |   |                    | $      | 148    |                  |   | $      | 1,783                  |   |   | $          | 402    |   |          | $      | 1,429  |       |   | $      | 28     |   |   | $ | 128 |   |   | $ | 4,431 |   |
|                                           |   |                   |    |   |                    |   |   |                  |   |   |                   |   |   |       |   |   |          |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans ending balance                     |   |                   |    |   |                    |   |   |                  |   |   |                   |   |   |       |   |   |          |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|   Collectively evaluated for    |   |                   |    |   |                    |   |   |                  |   |   |                   |   |   |       |   |   |          |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|     impairment                  |   | $                      | 129,342 |   |                    | $      | 6,112  |                  |   | $      | 158,437                |   |   | $          | 24,915 |   |          | $      | 69,601 |       |   | $      | 3,165  |   |   | $ | 29,729 |   |   | $ | 421,301 |   |
|   Individually evalutated for   |   |                   |    |   |                    |   |   |                  |   |   |                   |   |   |       |   |   |          |   |   |       |   |   |   |   |   |   |   |   |   |   |   |   |
|     impairment                  |   |                   | 3,328   |   |                    |   | 316    |                  |   |   | 3,670                  |   |   |       | 1,728  |   |          |   | 3,246  |       |   |   | -      |   |   |   | 204 |   |   |   | 12,492 |   |
|                                           |   | $                      | 132,670 |   |                    | $      | 6,428  |                  |   | $      | 162,107                |   |   | $          | 26,643 |   |          | $      | 72,847 |       |   | $      | 3,165  |   |   | $ | 29,933 |   |   | $ | 433,793 |   |

|                                          |   | December 31,   |   |
|-----------------------------------------------|--------|----------------|--------|
|                                          |   | 2010           |   |   | 2009 |   |
|                                          |   | (In Thousands) |   |
| Impaired loans without a valuation allowance  |   | $              | 6,800  |   |   | $ | 8,384 |   |
|                                          |   |           |   |   |   |   |   |   |
| Impaired loans with a valuation allowance     |   |           | 5,692  |   |   |   | 1,956 |   |
|                                          |   |           |   |   |   |   |   |   |
| Total impaired loans                          |   | $              | 12,492 |   |   | $ | 10,340 |   |
|                                          |   |           |   |   |   |   |   |   |
| Valuation allowance related to impaired loans |   | $              | 818    |   |   | $ | 501 |   |

|                             |   | Years Ended December 31, |   |
|----------------------------------|--------|--------------------------|--------|
|                             |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                             |   | (In Thousands)           |   |
| Average recorded investment in   |   |                     |   |   |   |   |   |   |   |
|    impaired loans |   | $                        | 11,448 |   |   | $ | 9,372 |   |   | $ | 4,812 |   |

----

|                                  |   |               |   |   |          |   |   |                      |   |   |             |   |   |                      |   |
|---------------------------------------|--------|--------------------|--------|--------|---------------|--------|--------|---------------------------|--------|--------|------------------|--------|--------|---------------------------|--------|
|                                  |   | RecordedInvestment |   |   | UnpaidBalance |   |   | AverageRecordedInvestment |   |   | RelatedAllowance |   |   | Interest IncomeRecognized |   |
|                                  |   | (In Thousands)     |   |
| With no related allowance             |   |               |   |   |          |   |   |                      |   |   |             |   |   |                      |   |
|    Residential real estate  |   | $                  | 2,274  |   |          | $      | 2,274  |                      |   | $      | 1,948            |   |   | $                         | -      |   |   | $ | 33 |   |
|    Residential construction |   |               | 97     |   |          |   | 97     |                      |   |   | 179              |   |   |                      | -      |   |   |   | - |   |
|    Commercial real estate   |   |               | 2,341  |   |          |   | 2,666  |                      |   |   | 1,262            |   |   |                      | -      |   |   |   | 26 |   |
|    Commercial construction  |   |               | 1,500  |   |          |   | 1,500  |                      |   |   | 1,499            |   |   |                      | -      |   |   |   | 50 |   |
|    Commercial               |   |               | 384    |   |          |   | 384    |                      |   |   | 1,199            |   |   |                      | -      |   |   |   | 10 |   |
|    Consumer                 |   |               | -      |   |          |   | -      |                      |   |   | -                |   |   |                      | -      |   |   |   | - |   |
|    Home equity              |   |               | 204    |   |          |   | 204    |                      |   |   | 150              |   |   |                      | -      |   |   |   | 4 |   |
|                                  |   |               |   |   |          |   |   |                      |   |   |             |   |   |                      |   |   |   |   |   |   |
| With an allowance                     |   |               |   |   |          |   |   |                      |   |   |             |   |   |                      |   |   |   |   |   |   |
|    Residential real estate  |   | $                  | 1,054  |   |          | $      | 1,054  |                      |   | $      | 835              |   |   | $                         | 164    |   |   | $ | 22 |   |
|    Residential construction |   |               | 219    |   |          |   | 219    |                      |   |   | 81               |   |   |                      | 62     |   |   |   | - |   |
|    Commercial real estate   |   |               | 1,329  |   |          |   | 1,329  |                      |   |   | 1,244            |   |   |                      | 151    |   |   |   | 47 |   |
|    Commercial construction  |   |               | 228    |   |          |   | 228    |                      |   |   | 563              |   |   |                      | 28     |   |   |   | 16 |   |
|    Commercial               |   |               | 2,862  |   |          |   | 2,862  |                      |   |   | 2,481            |   |   |                      | 413    |   |   |   | 129 |   |
|    Consumer                 |   |               | -      |   |          |   | -      |                      |   |   | -                |   |   |                      | -      |   |   |   | - |   |
|    Home equity              |   |               | -      |   |          |   | -      |                      |   |   | 7                |   |   |                      | -      |   |   |   | - |   |
|                                  |   |               |   |   |          |   |   |                      |   |   |             |   |   |                      |   |   |   |   |   |   |
| Total                                 |   |               |   |   |          |   |   |                      |   |   |             |   |   |                      |   |   |   |   |   |   |
|    Residential real estate  |   | $                  | 3,328  |   |          | $      | 3,328  |                      |   | $      | 2,783            |   |   | $                         | 164    |   |   | $ | 55 |   |
|    Residential construction |   |               | 316    |   |          |   | 316    |                      |   |   | 260              |   |   |                      | 62     |   |   |   | - |   |
|    Commercial real estate   |   |               | 3,670  |   |          |   | 3,995  |                      |   |   | 2,506            |   |   |                      | 151    |   |   |   | 73 |   |
|    Commercial construction  |   |               | 1,728  |   |          |   | 1,728  |                      |   |   | 2,062            |   |   |                      | 28     |   |   |   | 66 |   |
|    Commercial               |   |               | 3,246  |   |          |   | 3,246  |                      |   |   | 3,680            |   |   |                      | 413    |   |   |   | 139 |   |
|    Consumer                 |   |               | -      |   |          |   | -      |                      |   |   | -                |   |   |                      | -      |   |   |   | - |   |
|    Home equity              |   |               | 204    |   |          |   | 204    |                      |   |   | 157              |   |   |                      | -      |   |   |   | 4 |   |

----

|                                  |   | Nonaccrual     |   |
|---------------------------------------|--------|----------------|--------|
|                                  |   | (In Thousands) |   |
| Residential                           |   |           |   |
|    Residential              |   | $              | 3,329  |   |
|    Residential construction |   |           | 316    |   |
|                                  |   |           |   |   |
| Commercial                            |   |           |   |   |
|    Commercial               |   |           | 391    |   |
|    Commercial real estate   |   |           | 2,158  |   |
|    Commercial construction  |   |           | -      |   |
|                                  |   |           |   |   |
| Consumer                              |   |           |   |   |
|    Home equity              |   |           | 204    |   |
|    Consumer                 |   |           | 72     |   |
|                                  |   |           |   |   |
| Total                                 |   | $              | 6,470  |   |

|                          |   |               |   |   |               |   |   |                |   |   |          |   |   |    |   |   |       |   |
|-------------------------------|--------|--------------------|--------|--------|--------------------|--------|--------|---------------------|--------|--------|---------------|--------|--------|---------|--------|--------|------------|--------|
|                          |   | 31-59 DaysPast Due |   |   | 60-89 DaysPast Due |   |   | Greater than90 days |   |   | TotalPast Due |   |   | Current |   |   | TotalLoans |   |
|                          |   | (In Thousands)     |   |
| Residential real estate       |   | $                  | 964    |   |               | $      | 622    |                |   | $      | 2,356         |   |   | $       | 3,942  |   |       | $      | 128,728 |   |   | $ | 132,670 |   |
| Residential construction      |   |               | -      |   |               |   | -      |                |   |   | 316           |   |   |    | 316    |   |       |   | 6,112 |   |   |   | 6,428 |   |
| Commercial real estate        |   |               | 340    |   |               |   | 33     |                |   |   | 758           |   |   |    | 1,131  |   |       |   | 160,976 |   |   |   | 162,107 |   |
| Commercial construction       |   |               | -      |   |               |   | -      |                |   |   | -             |   |   |    | -      |   |       |   | 26,643 |   |   |   | 26,643 |   |
| Commercial                    |   |               | 105    |   |               |   | 401    |                |   |   | 258           |   |   |    | 764    |   |       |   | 72,083 |   |   |   | 72,847 |   |
| Consumer                      |   |               | 92     |   |               |   | 3      |                |   |   | 68            |   |   |    | 163    |   |       |   | 3,002 |   |   |   | 3,165 |   |
| Home equity                   |   |               | 107    |   |               |   | 6      |                |   |   | 117           |   |   |    | 230    |   |       |   | 29,703 |   |   |   | 29,933 |   |
|     Total |   | $                  | 1,608  |   |               | $      | 1,065  |                |   | $      | 3,873         |   |   | $       | 6,546  |   |       | $      | 427,247 |   |   | $ | 433,793 |   |

----

|                                  |   | Years Ended December 31, |   |
|---------------------------------------|--------|--------------------------|--------|
|                                  |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                  |   | (In Thousands)           |   |
| Balance at beginning of year          |   | $                        | 297    |   |   | $ | 75 |   |   | $ | 228 |   |
| Capitalized mortgage servicing rights |   |                     | 169    |   |   |   | 352 |   |   |   | 22 |   |
| Impairment losses                     |   |                     | (37    | ) |   |   | (6 | ) |   |   | (27 | ) |
| Amortization                          |   |                     | (123   | ) |   |   | (124 | ) |   |   | (148 | ) |
|                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
| Balance at end of year                |   | $                        | 306    |   |   | $ | 297 |   |   | $ | 75 |   |

----

|                                      |   | December 31,   |   |
|-------------------------------------------|--------|----------------|--------|
|                                      |   | 2010           |   |   | 2009 |   |
|                                      |   | (In Thousands) |   |
| Land                                      |   | $              | 1,529  |   |   | $ | 1,529 |   |
| Buildings                                 |   |           | 9,657  |   |   |   | 9,372 |   |
| Leasehold improvements                    |   |           | 1,432  |   |   |   | 1,432 |   |
| Furniture and equipment                   |   |           | 5,248  |   |   |   | 5,080 |   |
| Computer software and equipment           |   |           | 1,530  |   |   |   | 1,443 |   |
|                                      |   |           | 19,396 |   |   |   | 18,856 |   |
| Accumulated depreciation and amortization |   |           | (9,056 | ) |   |   | (8,204 | ) |
|                                      |   |           |   |   |   |   |   |   |
| Premises and equipment, net               |   | $              | 10,340 |   |   | $ | 10,652 |   |

|                                                                                                                     |   | December 31,   |    |
|--------------------------------------------------------------------------------------------------------------------------|--------|----------------|---------|
|                                                                                                                     |   | 2010           |    |   | 2009 |   |
|                                                                                                                     |   | (In Thousands) |    |
| Demand                                                                                                                   |   | $              | 48,302  |   |   | $ | 42,629 |   |
| NOW                                                                                                                      |   |           | 14,572  |   |   |   | 18,466 |   |
| Money market                                                                                                             |   |           | 66,218  |   |   |   | 55,293 |   |
| Regular savings                                                                                                          |   |           | 44,215  |   |   |   | 42,875 |   |
|                Total non-certificate accounts |   |           | 173,307 |   |   |   | 159,263 |   |
|                                                                                                                     |   |           |    |   |   |   |   |   |
| Certificate accounts less than $100,000                                                                                  |   |           | 108,280 |   |   |   | 106,745 |   |
| Certificate accounts of $100,000 or more                                                                                 |   |           | 110,350 |   |   |   | 99,490 |   |
|                Total certificate accounts     |   |           | 218,630 |   |   |   | 206,235 |   |
|                                                                                                                     |   |           |    |   |   |   |   |   |
|                Total deposits                 |   | $              | 391,937 |   |   | $ | 365,498 |   |

----

|   |   | December 31, 2010 |    |   | December 31, 2009 |   |
|--------|--------|-------------------|---------|--------|-------------------|--------|
|   |   | (In Thousands)    |    |
|   |   |              |    |   | Weighted          |   |   |   |   |   | Weighted |   |
|   |   |              |    |   | Average           |   |   |   |   |   | Average |   |
|   |   | Amount            |    |   | Rate              |   |   | Amount |   |   | Rate |   |
|   |   |              |    |   |              |   |   |   |   |   |   |   |
| 2010   |   | $                 | -       |   |              |   | - |   |   | $ | 112,867 |   |   |   | 2.01 | % |
| 2011   |   |              | 117,627 |   |              |   | 2.10 | % |   |   | 32,315 |   |   |   | 4.48 | % |
| 2012   |   |              | 23,750  |   |              |   | 2.48 | % |   |   | 11,895 |   |   |   | 3.50 | % |
| 2013   |   |              | 25,900  |   |              |   | 3.31 | % |   |   | 18,295 |   |   |   | 3.74 | % |
| 2014   |   |              | 30,057  |   |              |   | 2.92 | % |   |   | 30,863 |   |   |   | 2.90 | % |
| 2015   |   |              | 21,296  |   |              |   | 2.85 | % |   |   | - |   |   |   | - |   |
|   |   |              |    |   |              |   |   |   |   |   |   |   |   |   |   |   |
|   |   | $                 | 218,630 |   |              |   | 2.47 | % |   | $ | 206,235 |   |   |   | 2.77 | % |

|                                                |   | Years Ended December 31, |   |
|-----------------------------------------------------|--------|--------------------------|--------|
|                                                |   | 2010                     |   |   | 2009 |   |
|                                                |   | (In Thousands)           |   |
| Balance at year-end                                 |   | $                        | 17,972 |   |   | $ | 20,422 |   |
| Average amount outstanding during the year          |   |                     | 18,703 |   |   |   | 21,339 |   |
| Interest expense incurred during the year           |   |                     | 68     |   |   |   | 210 |   |
| Maximum amount outstanding at any month-end         |   |                     | 29,639 |   |   |   | 27,334 |   |
| Weighted average interest rate during the year      |   |                     | 0.36   | % |   |   | 0.98 | % |
| Weighted average interest rate on year-end balances |   |                     | 0.25   | % |   |   | 0.50 | % |

----

|                                                                                                                                                                                                                                                           |   |   | December 31, 2010 |   |   | December 31, 2009 |   |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                                                                                                                                                                                                                                                           |   |   |              |   |   | Weighted          |   |   |   |   |   | Weighted |   |
|                                                                                                                                                                                                                                                           |   |   |              |   |   | Average           |   |   |   |   |   | Average |   |
|                                                                                                                                                                                                                                                           |   |   | Amount            |   |   | Rate              |   |   | Amount |   |   | Rate |   |
|                                                                                                                                                                                                                                                           |   |   | (In Thousands)    |   |
| Fixed-rate FHLB advances maturing:                                                                                                                                                                                                                             |   |   |              |   |   |              |   |   |   |   |   |   |   |
| 2010                                                                                                                                                                                                                                                           |   |   | $                 | -      |   |              |   | - |   |   | $ | 5,000 |   |   |   | 2.50 | % |
| 2011                                                                                                                                                                                                                                                           | (a)    |   |              | -      |   |              |   | - |   |   |   | 16,450 |   |   |   | 3.74 | % |
| 2012                                                                                                                                                                                                                                                           | (a)    |   |              | 22,996 |   |              |   | 2.56 | % |   |   | 4,053 |   |   |   | 4.34 | % |
| 2013                                                                                                                                                                                                                                                           | (a)    |   |              | 2,604  |   |              |   | 3.55 | % |   |   | 3,588 |   |   |   | 3.55 | % |
| 2014                                                                                                                                                                                                                                                           | (a)    |   |              | 19,607 |   |              |   | 2.35 | % |   |   | 24,584 |   |   |   | 2.35 | % |
| 2015                                                                                                                                                                                                                                                           | (a)    |   |              | 13,012 |   |              |   | 2.12 | % |   |   | - |   |   |   | - |   |
| 2016                                                                                                                                                                                                                                                           | (a)    |   |              | 4,340  |   |              |   | 2.55 | % |   |   | 5,000 |   |   |   | 2.55 | % |
| 2017                                                                                                                                                                                                                                                           | (a)    |   |              | 4,056  |   |              |   | 2.57 | % |   |   | - |   |   |   | - |   |
| 2018                                                                                                                                                                                                                                                           | (b)    |   |              | 5,000  |   |              |   | 3.69 | % |   |   | 5,000 |   |   |   | 3.69 | % |
|                                                                                                                                                                                                                                                           |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| Total FHLB advances                                                                                                                                                                                                                                            |   |   | $                 | 71,615 |   |              |   | 2.54 | % |   | $ | 63,675 |   |   |   | 3.04 | % |
|                                                                                                                                                                                                                                                           |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |   |
| (a) Includes amortizing advances requiring monthly principal and interest payments.                                                                                                                                                                            |   |   |              |   |   |              |   |   |   |
| (b) One time put option- The FHLB may, at its option and its sole discretion, require the Member to repay this advance on June 30, 2011 provided that the FHLB has given the Member at least four days written notice of its intention to exercise its option. |   |

----

|                            |   | Years Ended December 31, |   |
|---------------------------------|--------|--------------------------|--------|
|                            |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                            |   | (In Thousands)           |   |
| Current tax expense (benefit):  |   |                     |   |   |   |   |   |   |   |
|     Federal |   | $                        | 92     |   |   | $ | (163 | ) |   | $ | (14 | ) |
|     State   |   |                     | 15     |   |   |   | 9 |   |   |   | 27 |   |
|                            |   |                     | 107    |   |   |   | (154 | ) |   |   | 13 |   |
| Deferred tax (benefit) expense: |   |                     |   |   |   |   |   |   |   |   |   |   |
|     Federal |   |                     | (309   | ) |   |   | (761 | ) |   |   | (15 | ) |
|     State   |   |                     | (85    | ) |   |   | (123 | ) |   |   | 78 |   |
|                            |   |                     | (394   | ) |   |   | (884 | ) |   |   | 63 |   |
|                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Change in valuation reserve     |   |                     | 57     |   |   |   | 411 |   |   |   | 300 |   |
|                            |   |                     | (337   | ) |   |   | (473 | ) |   |   | 363 |   |
|                            |   |                     |   |   |   |   |   |   |   |   |   |   |
| Income tax (benefit) expense    |   | $                        | (230   | ) |   | $ | (627 | ) |   | $ | 376 |   |

|                                                                                  |   | Years Ended December 31, |   |
|---------------------------------------------------------------------------------------|--------|--------------------------|--------|
|                                                                                  |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                                                  |   |                     |   |   |   |   |   |   |   |
| Statutory rate                                                                        |   |                     | 34.0   | % |   |   | 34.0 | % |   |   | 34.0 | % |
| (Decrease) increase resulting from:                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
|     State taxes, net of federal tax benefit                       |   |                     | 3.7    | % |   |   | 3.4 | % |   |   | 16.5 | % |
|     Dividends received deduction                                  |   |                     | -1.8   | % |   |   | 1.6 | % |   |   | -9.6 | % |
|     Change in valuation allowance                                 |   |                     | 24.2   | % |   |   | -18.5 | % |   |   | 71.3 | % |
|     Tax-exempt interest                                           |   |                     | -142.1 | % |   |   | 4.0 | % |   |   | -18.1 | % |
|     Bank owned life insurance                                     |   |                     | -60.9  | % |   |   | 7.1 | % |   |   | -37.9 | % |
|     Stock-based compensation                                      |   |                     | 60.8   | % |   |   | -5.4 | % |   |   | 17.3 | % |
|     Other, net                                                    |   |                     | -15.8  | % |   |   | 2.0 | % |   |   | 21.0 | % |
|                                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
|            Effective tax rates |   |                     | -97.9  | % |   |   | 28.2 | % |   |   | 94.5 | % |

----

|                                                                                 |   | December 31,   |   |
|--------------------------------------------------------------------------------------|--------|----------------|--------|
|                                                                                 |   | 2010           |   |   | 2009 |   |
|                                                                                 |   | (In Thousands) |   |
| Gross deferred tax assets                                                            |   |           |   |   |   |   |
|    Charitable contribution carryfoward                                |   | $              | 1,769  |   |   | $ | 1,780 |   |
|    Capital loss carryforward                                          |   |           | 71     |   |   |   | 145 |   |
|    Allowance for loan losses                                          |   |           | 1,898  |   |   |   | 1,628 |   |
|    Employee benefit and stock-based compensation plans                |   |           | 778    |   |   |   | 627 |   |
|    Other                                                              |   |           | 279    |   |   |   | 181 |   |
|          Gross deferred tax assets      |   |           | 4,795  |   |   |   | 4,361 |   |
|                                                                                 |   |           |   |   |   |   |   |   |
| Gross deferred tax liabilities                                                       |   |           |   |   |   |   |   |   |
|    Deferred loan costs                                                |   |           | (283   | ) |   |   | (315 | ) |
|    Mortgage servicing rights                                          |   |           | (122   | ) |   |   | (119 | ) |
|    Depreciation                                                       |   |           | (139   | ) |   |   | (69 | ) |
|    Unrealized gain on securities available-for-sale                   |   |           | (14    | ) |   |   | (35 | ) |
|          Gross deferred tax liabilities |   |           | (558   | ) |   |   | (538 | ) |
|                                                                                 |   |           |   |   |   |   |   |   |
|          Net deferred tax asset         |   |           | 4,237  |   |   |   | 3,823 |   |
|                                                                                 |   |           |   |   |   |   |   |   |
|          Valuation allowance            |   |           | (1,768 | ) |   |   | (1,711 | ) |
|                                                                                 |   |           |   |   |   |   |   |   |
|          Net deferred tax asset         |   | $              | 2,469  |   |   | $ | 2,112 |   |

|                                      |   | Years Ended December 31, |   |
|-------------------------------------------|--------|--------------------------|--------|
|                                      |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                      |   | (In Thousands)           |   |
| Balance at beginning of year              |   | $                        | 1,711  |   |   | $ | 1,300 |   |   | $ | 1,000 |   |
| Change generated by current               |   |                     |   |   |   |   |   |   |   |   |   |   |
|     year's operations |   |                     | 57     |   |   |   | 411 |   |   |   | 300 |   |
|                                      |   |                     |   |   |   |   |   |   |   |   |   |   |
| Balance at end of year                    |   | $                        | 1,768  |   |   | $ | 1,711 |   |   | $ | 1,300 |   |

----

|                                        |   | December 31,   |   |
|---------------------------------------------|--------|----------------|--------|
|                                        |   | 2010           |   |   | 2009 |   |
|                                        |   | (In Thousands) |   |
| Commitments to grant loans                  |   | $              | 18,945 |   |   | $ | 17,429 |   |
| Unfunded commitments for construction loans |   |           | 7,140  |   |   |   | 8,203 |   |
| Unfunded commitments under lines of credit  |   |           | 75,924 |   |   |   | 62,006 |   |
| Standby letters of credit                   |   |           | 2,301  |   |   |   | 2,334 |   |

----

|       |   | (In Thousands) |   |
|------------|--------|----------------|--------|
| 2011       |   | $              | 410    |   |
| 2012       |   |           | 364    |   |
| 2013       |   |           | 380    |   |
| 2014       |   |           | 374    |   |
| 2015       |   |           | 374    |   |
| Thereafter |   |           | 4,149  |   |
|       |   |           |   |   |
|       |   | $              | 6,051  |   |

----

----

|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   | Minimum           |   |
|----------------------------------------|--------|----------------|--------|--------|-------------------|--------|--------|---------------------|--------|--------|-------------------|--------|--------|-------------------|--------|
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   | to be Well        |   |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   | Capitalized Under |   |
|                                   |   |           |   |   |              |   |   | Minimum for Capital |   |   | Prompt Corrective |   |
|                                   |   | Actual         |   |   | Adequacy Purposes |   |   | Action Provisions   |   |
|                                   |   | Amount         |   |   | Ratio             |   |   | Amount              |   |   | Ratio             |   |   | Amount            |   |   | Ratio |   |
|                                   |   | (In Thousands) |   |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |
| As of December 31, 2010:               |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |
|     Company        |   | $              | 95,199 |   |              |   | 20.7   | %                   |   | $      | 36,861            |   |   |              | 8.0    | % |   |   | N/A |   |   |   | N/A |   |
|     Bank           |   | $              | 78,687 |   |              |   | 17.1   | %                   |   | $      | 36,786            |   |   |              | 8.0    | % |   | $ | 45,982 |   |   |   | 10.0 | % |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Risk Weighted Assets |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
|     Company        |   | $              | 90,749 |   |              |   | 19.7   | %                   |   | $      | 18,430            |   |   |              | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
|     Bank           |   | $              | 74,237 |   |              |   | 16.1   | %                   |   | $      | 18,393            |   |   |              | 4.0    | % |   | $ | 27,589 |   |   |   | 6.0 | % |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Average Assets       |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
|     Company        |   | $              | 90,749 |   |              |   | 16.1   | %                   |   | $      | 22,590            |   |   |              | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
|     Bank           |   | $              | 74,237 |   |              |   | 13.2   | %                   |   | $      | 22,532            |   |   |              | 4.0    | % |   | $ | 28,164 |   |   |   | 5.0 | % |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2009:               |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
|     Company        |   | $              | 97,878 |   |              |   | 23.4   | %                   |   | $      | 33,418            |   |   |              | 8.0    | % |   |   | N/A |   |   |   | N/A |   |
|     Bank           |   | $              | 84,779 |   |              |   | 20.4   | %                   |   | $      | 33,303            |   |   |              | 8.0    | % |   | $ | 41,628 |   |   |   | 10.0 | % |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Risk Weighted Assets |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
|     Company        |   | $              | 93,756 |   |              |   | 22.4   | %                   |   | $      | 16,709            |   |   |              | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
|     Bank           |   | $              | 80,657 |   |              |   | 19.4   | %                   |   | $      | 16,651            |   |   |              | 4.0    | % |   | $ | 24,977 |   |   |   | 6.0 | % |
|                                   |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
| Tier 1 Capital to Average Assets       |   |           |   |   |              |   |   |                |   |   |              |   |   |              |   |   |   |   |   |   |   |   |   |   |
|     Company        |   | $              | 93,756 |   |              |   | 17.4   | %                   |   | $      | 21,498            |   |   |              | 4.0    | % |   |   | N/A |   |   |   | N/A |   |
|     Bank           |   | $              | 80,657 |   |              |   | 15.1   | %                   |   | $      | 21,435            |   |   |              | 4.0    | % |   | $ | 26,794 |   |   |   | 5.0 | % |

----

|                                                                |   | December 31,   |   |
|---------------------------------------------------------------------|--------|----------------|--------|
|                                                                |   | 2010           |   |   | 2009 |   |
|                                                                |   | (In Thousands) |   |
| Total equity determined under generally                             |   |           |   |   |   |   |
|     accepted accounting principles              |   | $              | 91,882 |   |   | $ | 94,172 |   |
| Net unrealized gain on securities available-for-sale,               |   |           |   |   |   |   |   |   |
|     net of tax                                  |   |           | (28    | ) |   |   | (66 | ) |
| Disallowed mortgage servicing rights                                |   |           | (31    | ) |   |   | (30 | ) |
| Disallowed deferred tax assets                                      |   |           | (1,074 | ) |   |   | (320 | ) |
|     Tier 1 Capital                              |   |           | 90,749 |   |   |   | 93,756 |   |
| Allowable allowance for loan losses                                 |   |           | 4,431  |   |   |   | 4,077 |   |
| Unrealized gain on available-for-sale equity securities, net of tax |   |           | 19     |   |   |   | 45 |   |
|                                                                |   |           |   |   |   |   |   |   |
|     Total regulatory capital                    |   | $              | 95,199 |   |   | $ | 97,878 |   |

----

|                                                                   |   | Plan Year Ended  |   |
|------------------------------------------------------------------------|--------|------------------|--------|
|                                                                   |   | October 31, 2008 |   |
|                                                                   |   | (In Thousands)   |   |
| Change in plan assets:                                                 |   |             |   |
|     Fair value of plan assets at beginning of year |   | $                | 5,638  |   |
|     Actual return on plan assets                   |   |             | 157    |   |
|     Contributions                                  |   |             | 781    |   |
|     Benefits paid                                  |   |             | (6,576 | ) |
|     Fair value of plan assets at end of year       |   |             | -      |   |
|                                                                   |   |             |   |   |
| Change in benefit obligation:                                          |   |             |   |   |
|     Benefit obligation at beginning of year        |   |             | 6,419  |   |
|     Service cost                                   |   |             | -      |   |
|     Interest cost                                  |   |             | 157    |   |
|     Actuarial gain                                 |   |             | -      |   |
|     Benefits paid                                  |   |             | (6,576 | ) |
|     Benefit obligation at end of year              |   |             | -      |   |
|                                                                   |   |             |   |   |
| Funded status and accrued benefit cost                                 |   |             |   |   |
|     recognized in the balance sheet at October 31  |   | $                | -      |   |
|                                                                   |   |             |   |   |
| Accumulated benefit obligation                                         |   | $                | -      |   |

----

|                                    |   | Plan Year EndedOctober 31, |   |
|-----------------------------------------|--------|----------------------------|--------|
|                                    |   | 2008                       |   |
|                                    |   | (In Thousands)             |   |
| Service cost                            |   | $                          | -      |   |
| Interest cost                           |   |                       | 157    |   |
| Expected return on plan assets          |   |                       | (157   | ) |
| Recognized net actuarial loss           |   |                       | -      |   |
| Amortization of unrecognized transition |   |                       |   |   |
|     obligation      |   |                       | -      |   |
|                                    |   |                       |   |   |
| Net periodic benefit cost               |   | $                          | -      |   |

|                                                       |   | 2008   |   |
|------------------------------------------------------------|--------|--------|--------|
| Weighted average assumptions used to determine benefit     |   |   |   |
|      cost were as follows:        |   |   |   |
|                                                       |   |   |   |
| Discount rate on benefit cost                              |   |   | 4.79   | % |
| Rate of increase in compensation levels                    |   |   | N/A    |   |
| Expected long-term rate of return on plan assets           |   |   | 4.79   | % |
|                                                       |   |   |   |   |
| Weighted average assumptions used to determine the benefit |   |   |   |   |
|      obligation were as follows:  |   |   |   |   |
|                                                       |   |   |   |   |
| Discount rate on benefit obligations                       |   |   | N/A    |   |
| Rate of increase in compensation levels                    |   |   | N/A    |   |
|                                                       |   |   |   |   |
| N/A = not applicable                                       |   |   |   |   |

----

| Years Ending   |   |
|----------------|--------|
| December 31,   |   |
| (In Thousands) |   |
| 2011           |   | $ | 180 |   |
| 2012           |   |   | 195 |   |
| 2013           |   |   | 211 |   |
| 2014           |   |   | 229 |   |
| 2015           |   |   | 247 |   |
| Thereafter     |   |   | 3,926 |   |
|           |   |   |   |   |
|           |   | $ | 4,988 |   |

----

|        |   | December 31, |    |
|-------------|--------|--------------|---------|
|        |   | 2010         |    |   | 2009 |   |   | 2008 |   |
| Allocated   |   |         | 144,241 |   |   |   | 114,788 |   |   |   | 88,017 |   |
| Unallocated |   |         | 446,364 |   |   |   | 476,121 |   |   |   | 505,878 |   |
|        |   |         | 590,605 |   |   |   | 590,909 |   |   |   | 593,895 |   |

|                    |   | Year Ended   |   |
|-------------------------|--------|--------------|--------|
|                    |   | December 31, |   |
|                    |   | 2009         |   |
| Expected dividend yield |   |         | 2.00   | % |
| Expected term           |   | 6.5 years    |   |
| Expected volatility     |   |         | 25.89  | % |
| Risk-free interest rate |   |         | 2.95   | % |

----

|                              |   |   |    |   |             |   |   | Weighted Average |   |   |          |   |
|-----------------------------------|--------|--------|---------|--------|------------------|--------|--------|------------------|--------|--------|---------------|--------|
|                              |   |   |    |   |             |   |   | Remaining        |   |   | Aggregate     |   |
|                              |   |   |    |   | Weighted Average |   |   | Contractual Term |   |   | Intrinsic     |   |
|                              |   | Shares |    |   | Exercise Price   |   |   | (in years)       |   |   | Value (000's) |   |
|                              |   |   |    |   |             |   |   |             |   |   |          |   |
| Outstanding at December 31, 2008  |   |   | 671,667 |   |             | $      | 14.27  |             |   |   | 8.43          |   |   |   |   |
| Outstanding at December 31, 2009  |   |   | 688,167 |   |             |   | 14.22  |             |   |   | 7.50          |   |   |   |   |
| Granted                           |   |   | -       |   |             |   | -      |             |   |   | -             |   |   |   |   |
| Exercised                         |   |   | -       |   |             |   | -      |             |   |   | -             |   |   |   |   |
| Forfeited or expired              |   |   | 96,833  |   |             |   | 14.29  |             |   |   | -             |   |   |   |   |
| Outstanding at December 31, 2010  |   |   | 591,334 |   |             | $      | 14.21  |             |   |   | 6.48          |   |   | $ | 8,403 |   |
| Excercisable at December 31, 2010 |   |   | 347,198 |   |             | $      | 14.25  |             |   |   | 6.43          |   |   | $ | 4,949 |   |
| Exercisable at December 31, 2009  |   |   | 267,665 |   |             | $      | 14.28  |             |   |   | 7.43          |   |   | $ | 3,822 |   |
| Exercisable at December 31, 2008  |   |   | 133,331 |   |             | $      | 14.29  |             |   |   | 8.42          |   |   | $ | 1,905 |   |

----

|                             |   |   |    |   | Weighted Average |   |
|----------------------------------|--------|--------|---------|--------|------------------|--------|
|                             |   |   |    |   | Grant-Date       |   |
| Nonvested Shares                 |   | Shares |    |   | Fair Value       |   |
|                             |   |   |    |   |             |   |
| Outstanding at December 31, 2008 |   |   | 234,755 |   |             | $      | 14.29 |   |
| Outstanding at December 31, 2009 |   |   | 176,070 |   |             |   | 14.29 |   |
| Granted                          |   |   | -       |   |             |   | - |   |
| Vested                           |   |   | 58,684  |   |             |   | 14.29 |   |
| Forfeited or expired             |   |   | -       |   |             |   | - |   |
| Outstanding at December 31, 2010 |   |   | 117,386 |   |             | $      | 14.29 |   |

|                           |   | Years Ended    |   |
|--------------------------------|--------|----------------|--------|
|                           |   | December 31,   |   |
|                           |   | 2010           |   |   | 2009 |   |
|                           |   | (In Thousands) |   |
| Balance at beginning of year   |   | $              | 1,171  |   |   | $ | 1,672 |   |
| Additions                      |   |           | 631    |   |   |   | 218 |   |
| Repayments                     |   |           | (118   | ) |   |   | (744 | ) |
| Change in related party status |   |           | -      |   |   |   | 25 |   |
|                           |   |           |   |   |   |   |   |   |
| Balance at end of year         |   | $              | 1,684  |   |   | $ | 1,171 |   |

----

----

|                                                  |   | Fair Value Measurements Using |   |
|-------------------------------------------------------|--------|-------------------------------|--------|
|                                                  |   | December 31,2010              |   |   | QuotedPrices inActiveMarkets forIdenticalAssets(Level 1) |   |   | SignificantOtherObservableInputs(Level 2) |   |   | SignificantUnobservableInputs(Level 3) |   |
|                                                  |   | (In Thousands)                |   |
| Securities available-for-sale                         |   |                          |   |   |   |   |   |   |   |   |   |   |
|    Equity securities by industry type: |   |                          |   |   |   |   |   |   |   |   |   |   |
| Financial                                             |   | $                             | 362    |   |   | $ | 362 |   |   | $ | - |   |   | $ | - |   |
|                                                  |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                                  |   | December 31,2009              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Securities available-for-sale                         |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    Equity securities by industry type: |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial                                             |   | $                             | 503    |   |   | $ | 503 |   |   | $ | - |   |   | $ | - |   |

----

|                                           |   | Fair Value Measurements Using |   |
|------------------------------------------------|--------|-------------------------------|--------|
|                                           |   |                          |   |   | Quoted |   |   |   |   |   |   |   |
|                                           |   |                          |   |   | Prices in |   |   |   |   |   |   |   |
|                                           |   |                          |   |   | Active |   |   | Significant |   |   |   |   |
|                                           |   |                          |   |   | Markets for |   |   | Other |   |   | Significant |   |
|                                           |   |                          |   |   | Identical |   |   | Observable |   |   | Unobservable |   |
|                                           |   | December 31,                  |   |   | Assets |   |   | Inputs |   |   | Inputs |   |
|                                           |   | 2010                          |   |   | (Level 1) |   |   | (Level 2) |   |   | (Level 3) |   |
|                                           |   | (In Thousands)                |   |
| Assets:                                        |   |                          |   |   |   |   |   |   |   |   |   |   |
| Impaired loans with a valuation allowance, net |   | $                             | 4,874  |   |   | $ | - |   |   | $ | 4,874 |   |   | $ | - |   |
| Other real estate owned                        |   |                          | 286    |   |   |   | - |   |   |   | 286 |   |   |   | - |   |
| Loans held for sale                            |   |                          | 1,888  |   |   |   | - |   |   |   | 1,888 |   |   |   | - |   |
|                                           |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|                                           |   | December 31,2009              |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Assets:                                        |   |                          |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Impaired loans with a valuation allowance, net |   | $                             | 1,527  |   |   | $ | - |   |   | $ | 1,527 |   |   | $ | - |   |
| Other real estate owned                        |   |                          | 80     |   |   |   | - |   |   |   | 80 |   |   |   | - |   |
| Loans held for sale                            |   |                          | 534    |   |   |   | - |   |   |   | 534 |   |   |   | - |   |

----

----

|                                                               |   | December 31,   |    |
|--------------------------------------------------------------------|--------|----------------|---------|
|                                                               |   | 2010           |    |   | 2009 |   |
|                                                               |   | CarryingAmount |    |   | FairValue |   |   | CarryingAmount |   |   | FairValue |   |
| Financial assets:                                                  |   | (In Thousands) |    |
|      Cash and cash equivalents            |   | $              | 35,873  |   |   | $ | 35,873 |   |   | $ | 20,075 |   |   | $ | 20,075 |   |
|      Securities available-for-sale        |   |           | 362     |   |   |   | 362 |   |   |   | 503 |   |   |   | 503 |   |
|      Securities held-to-maturity          |   |           | 69,713  |   |   |   | 69,912 |   |   |   | 62,983 |   |   |   | 63,130 |   |
|      Federal Home Loan Bank stock         |   |           | 4,489   |   |   |   | 4,489 |   |   |   | 4,306 |   |   |   | 4,306 |   |
|      Loans, net                           |   |           | 430,307 |   |   |   | 426,024 |   |   |   | 424,655 |   |   |   | 421,155 |   |
|      Loans held for sale                  |   |           | 1,888   |   |   |   | 1,888 |   |   |   | 534 |   |   |   | 534 |   |
|      Accrued interest receivable          |   |           | 1,897   |   |   |   | 1,897 |   |   |   | 1,629 |   |   |   | 1,629 |   |
|      Mortgage servicing rights            |   |           | 306     |   |   |   | 455 |   |   |   | 297 |   |   |   | 582 |   |
|                                                               |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Financial liabilities:                                             |   |           |    |   |   |   |   |   |   |   |   |   |   |   |   |   |
|      Deposits                             |   |           | 391,937 |   |   |   | 390,951 |   |   |   | 365,498 |   |   |   | 361,114 |   |
|      Repurchase agreements                |   |           | 17,972  |   |   |   | 17,972 |   |   |   | 20,422 |   |   |   | 20,422 |   |
|      Advances from Federal Home Loan Bank |   |           | 71,615  |   |   |   | 73,241 |   |   |   | 63,675 |   |   |   | 64,002 |   |
|      Accrued interest payable             |   |           | 162     |   |   |   | 162 |   |   |   | 175 |   |   |   | 175 |   |

----

|                                       |   | 2010           |   |   | 2009    |   |
|--------------------------------------------|--------|----------------|--------|--------|---------|--------|
|                                       |   | First          |   |   | Second  |   |   | Third |   |   | Fourth |   |   | First |   |   | Second |   |   | Third |   |   | Fourth |   |
|                                       |   | Quarter        |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |   | Quarter |   |
|                                       |   | (In Thousands) |   |
| Interest and dividend income               |   | $              | 6,184  |   |    | $      | 6,283 |   |   | $ | 6,209 |   |   | $ | 6,181 |   |   | $ | 6,105 |   |   | $ | 6,132 |   |   | $ | 6,083 |   |   | $ | 6,194 |   |
| Interest expense                           |   |           | 2,032  |   |    |   | 2,007 |   |   |   | 2,026 |   |   |   | 1,951 |   |   |   | 2,344 |   |   |   | 2,278 |   |   |   | 2,335 |   |   |   | 2,150 |   |
| Net interest and dividend                  |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    income                        |   |           | 4,152  |   |    |   | 4,276 |   |   |   | 4,183 |   |   |   | 4,230 |   |   |   | 3,761 |   |   |   | 3,854 |   |   |   | 3,748 |   |   |   | 4,044 |   |
| Provision for loan losses                  |   |           | 273    |   |    |   | 112 |   |   |   | 376 |   |   |   | 462 |   |   |   | 94 |   |   |   | 71 |   |   |   | 385 |   |   |   | 347 |   |
| Net (loss) gain on sales of                |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    securities available-for-sale |   |           | -      |   |    |   | - |   |   |   | - |   |   |   | 158 |   |   |   | 36 |   |   |   | (9 | ) |   |   | (25 | ) |   |   | 139 |   |
| Other than temporary                  |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    impairment charge             |   |           | 13     |   |    |   | - |   |   |   | - |   |   |   | - |   |   |   | - |   |   |   | 106 |   |   |   | 1,297 |   |   |   | - |   |
| Fees and other non-interest           |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|    income                        |   |           | 620    |   |    |   | 592 |   |   |   | 603 |   |   |   | 666 |   |   |   | 650 |   |   |   | 705 |   |   |   | 613 |   |   |   | 606 |   |
| Non-interest expenses                      |   |           | 4,536  |   |    |   | 4,620 |   |   |   | 4,326 |   |   |   | 4,527 |   |   |   | 4,238 |   |   |   | 4,697 |   |   |   | 4,547 |   |   |   | 4,563 |   |
| Income tax provision                       |   |           | -      |   |    |   | 9 |   |   |   | (99 | ) |   |   | (140 | ) |   |   | 1 |   |   |   | (150 | ) |   |   | (492 | ) |   |   | 14 |   |
| Net income (loss)                          |   | $              | (50    | )      |    | $      | 127 |   |   | $ | 183 |   |   | $ | 205 |   |   | $ | 114 |   |   | $ | (174 | ) |   | $ | (1,401 | ) |   | $ | (135 | ) |
|                                       |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Earnings (loss) per share:                 |   |           |   |   |    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
|     Basic              |   | $              | (0.01  | )      |    | $      | 0.02 |   |   | $ | 0.03 |   |   | $ | 0.04 |   |   | $ | 0.02 |   |   | $ | (0.03 | ) |   | $ | (0.25 | ) |   | $ | (0.02 | ) |
|     Diluted            |   | $              | (0.01  | )      |    | $      | 0.02 |   |   | $ | 0.03 |   |   | $ | 0.04 |   |   | $ | 0.02 |   |   | $ | (0.03 | ) |   | $ | (0.25 | ) |   | $ | (0.02 | ) |

----

|                                                                                             |   | December 31,   |   |
|--------------------------------------------------------------------------------------------------|--------|----------------|--------|
| BALANCE SHEETS                                                                                   |   | 2010           |   |   | 2009 |   |
|                                                                                             |   | (In Thousands) |   |
| Assets                                                                                           |   |           |   |   |   |   |
| Cash and cash equivalents                                                                        |   | $              | 9,647  |   |   | $ | 3,714 |   |
| Investment in common stock of Chicopee Savings Bank                                              |   |           | 75,371 |   |   |   | 81,073 |   |
| Investment in common stock of Chicopee Funding Corporation                                       |   |           | 5,856  |   |   |   | 7,415 |   |
| Other assets                                                                                     |   |           | 1,020  |   |   |   | 1,982 |   |
|         Total assets                                     |   | $              | 91,894 |   |   | $ | 94,184 |   |
|                                                                                             |   |           |   |   |   |   |   |   |
| Liabilities and Stockholders' Equity                                                             |   |           |   |   |   |   |   |   |
| Total liabilities                                                                                |   | $              | 12     |   |   | $ | 12 |   |
| Stockholders' equity                                                                             |   |           | 91,882 |   |   |   | 94,172 |   |
|          Total liabilities and stockholders' equity |   | $              | 91,894 |   |   | $ | 94,184 |   |

|                                                               |   | Years Ended December 31, |   |
|--------------------------------------------------------------------|--------|--------------------------|--------|
| STATEMENTS OF OPERATIONS                                           |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                               |   | (In Thousands)           |   |
|                                                               |   |                     |   |   |   |   |   |   |   |
| Interest income                                                    |   | $                        | 10,539 |   |   | $ | 64 |   |   | $ | 261 |   |
| Non-interest income                                                |   |                     | -      |   |   |   | - |   |   |   | 2 |   |
| Operating expenses                                                 |   |                     | 644    |   |   |   | 713 |   |   |   | 1,068 |   |
| Loss before income taxes and equity in undistributed               |   |                     |   |   |   |   |   |   |   |   |   |   |
|    net income of subsidiaries                            |   |                     | 9,895  |   |   |   | (649 | ) |   |   | (805 | ) |
| Applicable income tax expense (benefit)                            |   |                     | 81     |   |   |   | (233 | ) |   |   | 81 |   |
| Loss before equity in undistributed net income of subsidiaries     |   |                     | 9,814  |   |   |   | (416 | ) |   |   | (886 | ) |
| Equity in undistributed net income (loss) of Chicopee Savings Bank |   |                     | (7,790 | ) |   |   | (1,627 | ) |   |   | 501 |   |
| Equity in undistributed net income of Chicopee Funding Corporation |   |                     | (1,559 | ) |   |   | 447 |   |   |   | 407 |   |
| Net income (loss)                                                  |   | $                        | 465    |   |   | $ | (1,596 | ) |   | $ | 22 |   |

----

|                                                                                                                                                   |   | Years Ended December 31, |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------|--------|--------------------------|--------|
| STATEMENTS OF CASH FLOWS                                                                                                                               |   | 2010                     |   |   | 2009 |   |   | 2008 |   |
|                                                                                                                                                   |   | (In Thousands)           |   |
| Cash flows from operating activities:                                                                                                                  |   |                     |   |   |   |   |   |   |   |
|      Net income (loss)                                                                                                        |   | $                        | 465    |   |   | $ | (1,596 | ) |   | $ | 22 |   |
|      Adjustments to reconcile net income (loss) to net cash                                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
|           provided by operating activities:                                                          |   |                     |   |   |   |   |   |   |   |   |   |   |
|               Equity in undistributed net (income) loss of Chicopee Savings Bank |   |                     | 7,790  |   |   |   | 1,627 |   |   |   | (501 | ) |
|               Equity in undistributed net income of Chicopee Funding Corporation |   |                     | 1,559  |   |   |   | (447 | ) |   |   | (407 | ) |
|               Deferred income tax expense                                        |   |                     | -      |   |   |   | 300 |   |   |   | 300 |   |
|               Decrease (increase) in accrued interest receivable                 |   |                     |   |   |   |   | - |   |   |   | 1 |   |
|               Decrease (increase) in other assets                                |   |                     | 463    |   |   |   | (412 | ) |   |   | (350 | ) |
|              (Decrease) increase in other liabilities                                 |   |                     | -      |   |   |   | (145 | ) |   |   | 100 |   |
|               Change in unearned compensation                                    |   |                     | 1,626  |   |   |   | 1,733 |   |   |   | 1,725 |   |
|  Net cash provided by operating activities                                                                                                        |   |                     | 11,903 |   |   |   | 1,060 |   |   |   | 890 |   |
|                                                                                                                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Cash flows from investing activities:                                                                                                                  |   |                     |   |   |   |   |   |   |   |   |   |   |
|      Investment in Chicopee Savings Bank                                                                                      |   |                     | (1,626 | ) |   |   | (1,733 | ) |   |   | (1,725 | ) |
|      Purchases of securities held-to-maturity                                                                                 |   |                     | -      |   |   |   | (230 | ) |   |   | (731 | ) |
|      Maturities of securities held-to-maturity                                                                                |   |                     | -      |   |   |   | 345 |   |   |   | 636 |   |
|  Net cash provided (used) in investing activities                                                                                                 |   |                     | (1,626 | ) |   |   | (1,618 | ) |   |   | (1,820 | ) |
|                                                                                                                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Cash flows from financing activities                                                                                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
|      Stock purchased for treasury                                                                                             |   |                     | (4,344 | ) |   |   | (1,468 | ) |   |   | (10,375 | ) |
|  Net cash used in financing activities                                                                                                            |   |                     | (4,344 | ) |   |   | (1,468 | ) |   |   | (10,375 | ) |
|                                                                                                                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                                                                                   |   |                     | 5,933  |   |   |   | (2,026 | ) |   |   | (11,305 | ) |
|                                                                                                                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                                                                                         |   |                     | 3,714  |   |   |   | 5,740 |   |   |   | 17,045 |   |
|                                                                                                                                                   |   |                     |   |   |   |   |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                                                                               |   | $                        | 9,647  |   |   | $ | 3,714 |   |   | $ | 5,740 |   |

----

| ● | Those comprising events or transactions providing additional evidence about conditions that existed at the balance sheet date, including estimates inherent in the financial statement preparation process (referred to as recognized subsequent events). |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| ● | Those comprising events that provide evidence about conditions not existing at the balance sheet date but, rather, that arose after such date (referred to as non-recognized subsequent events).                                                          |

| F-53 |
|------|