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

|        |
|--------|
|        |  |
|   | For the fiscal year ended December 31, 2012 |

|   |
|---|
|   |  |
| 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 |

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

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|   |
|---|
|   |  |  |
| - |   | Report of Independent Registered Public Accounting Firm |
| - |   | Consolidated Balance Sheets at December 31, 2012 and 2011 |
| - |   | Consolidated Statements of Income for the Years Ended December 31, 2012, 2011 and 2010 |
| - |   | Consolidated Statements of Other Comprehensive Income for the Years Ended December 31, 2012, 2011 and 2010 |
| - |   | Consolidated Statements of Changes in Stockholders’ Equity for the Years Ended December 31, 2012, 2011 and 2010 |
| - |   | Consolidated Statements of Cash Flows for the Years Ended December 31, 2012, 2011 and 2010 |
| - |   | 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*     | Form of Chicopee Savings Bank Employee Stock Ownership Plan (1) |
| 10.4*     | Form of Trust Agreement between Chicopee Savings Bank and the Trustee for Chicopee Savings Bank Employee Stock Ownership Plan Trust (1) |
| 10.5*     | Form of Loan Agreement (1) |
| 10.6*     | Amended and Restated Chicopee Savings Bank Employee Severance Compensation Plan (3) |
| 10.7*     | Amended and Restated Chicopee Savings Bank Supplemental Executive Retirement Plan (3) |
| 10.8*     | Form of Executive Supplemental Retirement Income Agreement between Chicopee Savings Bank and Russell J. Omer and William J. Wagner (1) |
| 10.9*     | Form of First Amendment to the Executive Supplemental Retirement Income Agreement between Chicopee Savings Bank and Russell J. Omer and William J. Wagner (3) |
| 10.10*    | First Amendment to Amended and Restated Employment Agreement between William J. Wagner and Chicopee Bancorp, Inc. (3) |
| 10.11*    | First Amendment to Amended and Restated Employment Agreement between William J. Wagner and Chicopee Savings Bank (3) |
| 10.12*    | Change in Control Agreement between Guida R. Sajdak and Chicopee Savings Bank (4) |
| 10.13*    | First Amendment to Change in Control Employment Agreement between Guida R. Sajdak and Chicopee Savings Bank (6) |
| 10.14*    | Employment Agreement between Russell J. Omer and Chicopee Bancorp, Inc. (4) |
| 10.15*    | Employment Agreement between Russell J. Omer and Chicopee Savings Bank (4) |
| 10.16*    | Chicopee Bancorp, Inc. 2007 Equity Incentive Plan (5) |
| 21.0      | List of Subsidiaries (7) |
| 23.0      | Consent of Berry Dunn McNeil & Parker, LLC |
| 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. |
|   |   | (5 | ) |   | Incorporated herein by reference to Appendix A to the Company’s definitive proxy statement filed with the Securities and Exchange Commission on April 18, 2007 (File No. 000-51996). |
|   |   | (6 | ) |   | Incorporated by reference to the Company's 8-K filed with the SEC on March 1, 2013. |
|   |   | (7 | ) |   | Incorporated by reference in this document to the Company's Annual Report on Form 10-K for the year ended December 31, 2012, filed on March 15, 2013 (File No. 000-51996). |

----

|                        |
|------------------------|
|                        |  |  |
| Chicopee Bancorp, Inc. |   |
|                   |   |   |
| By:                    | /s/ William J. Wagner | July 22, 2013 |
|                   | William J. Wagner |   |
|                   | Chairman of the Board, President and Chief Executive Officer |

----

----

----

----

|                                                                                            |
|--------------------------------------------------------------------------------------------|
|                                                                                            |  |  |  |  |  |  |  |  |
|                                                                                       |   | December 31, |
|                                                                                       |   | 2012 |   | 2011 |
| ASSETS                                                                                     |   | (In Thousands, except share data) |
| Cash and due from banks                                                                    |   | $ | 11,073 |  |   | $ | 10,204 |  |
| Federal funds sold                                                                         |   | 3,372 |  |   | 50,457 |  |
| Interest-bearing deposits with the Federal Reserve Bank of Boston                          |   | 25,163 |  |   | 461 |  |
| Cash and cash equivalents                                                                  |   | 39,608 |  |   | 61,122 |  |
|                                                                                       |   |   |   |   |
| Securities available-for-sale, at fair value                                               |   | 621 |  |   | 613 |  |
| Securities held-to-maturity, at cost (fair value $67,108 and $80,607                       |   |   |  |   |   |  |
| at December 31, 2012 and 2011, respectively)                                               |   | 59,568 |  |   | 73,852 |  |
| Federal Home Loan Bank stock, at cost                                                      |   | 4,277 |  |   | 4,489 |  |
| Loans receivable, net of allowance for loan losses ($4,364 at                              |   |   |  |   |   |  |
| December 31, 2012 and $4,576 at December 31, 2011)                                         |   | 465,211 |  |   | 443,471 |  |
| Loans held for sale                                                                        |   | — |  |   | 1,635 |  |
| Other real estate owned                                                                    |   | 572 |  |   | 913 |  |
| Mortgage servicing rights                                                                  |   | 368 |  |   | 344 |  |
| Bank owned life insurance                                                                  |   | 13,807 |  |   | 13,427 |  |
| Premises and equipment, net                                                                |   | 9,459 |  |   | 9,736 |  |
| Accrued interest receivable                                                                |   | 1,567 |  |   | 1,527 |  |
| Deferred income tax asset                                                                  |   | 3,252 |  |   | 2,893 |  |
| FDIC prepaid insurance                                                                     |   | 467 |  |   | 824 |  |
| Other assets                                                                               |   | 1,205 |  |   | 1,460 |  |
| Total assets                                                                               |   | $ | 599,982 |  |   | $ | 616,306 |  |
|                                                                                       |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                       |   |   |  |   |   |  |
| Deposits                                                                                   |   |   |  |   |   |  |
| Demand deposits                                                                            |   | $ | 75,407 |  |   | $ | 68,799 |  |
| NOW accounts                                                                               |   | 36,711 |  |   | 26,747 |  |
| Savings accounts                                                                           |   | 48,882 |  |   | 47,122 |  |
| Money market deposit accounts                                                              |   | 127,730 |  |   | 97,606 |  |
| Certificates of deposit                                                                    |   | 177,447 |  |   | 213,103 |  |
| Total deposits                                                                             |   | 466,177 |  |   | 453,377 |  |
|                                                                                       |   |   |   |   |
| Securities sold under agreements to repurchase                                             |   | 9,763 |  |   | 12,340 |  |
| Advances from Federal Home Loan Bank                                                       |   | 33,332 |  |   | 59,265 |  |
| Accrued expenses and other liabilities                                                     |   | 741 |  |   | 542 |  |
| Total liabilities                                                                          |   | 510,013 |  |   | 525,524 |  |
|                                                                                       |   |   |   |   |
| 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;         |   |   |  |   |   |  |
| 5,428,585 outstanding at December 31, 2012 and 5,736,303 outstanding at December 31, 2011) |   | 72,479 |  |   | 72,479 |  |
| Treasury stock, at cost (2,010,783 shares at December 31, 2012 and                         |   |   |  |   |   |  |
| 1,703,065 shares at December 31, 2011)                                                     |   | (26,567 | ) |   | (22,190 | ) |
| Additional paid-in capital                                                                 |   | 3,044 |  |   | 2,800 |  |
| Unearned compensation (restricted stock awards)                                            |   | (18 | ) |   | (546 | ) |
| Unearned compensation (Employee Stock Ownership Plan)                                      |   | (3,868 | ) |   | (4,166 | ) |
| Retained earnings                                                                          |   | 44,873 |  |   | 42,408 |  |
| Accumulated other comprehensive income (loss)                                              |   | 26 |  |   | (3 | ) |
| Total stockholders' equity                                                                 |   | 89,969 |  |   | 90,782 |  |
| Total liabilities and stockholders' equity                                                 |   | $ | 599,982 |  |   | $ | 616,306 |  |
|                                                                                       |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements.    |   |   |  |   |   |  |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    |   | Years Ended December 31, |
|                                                                                    |   | 2012 |   | 2011 |   | 2010 |
|                                                                                    |   | (In Thousands, except share data) |
| Interest and dividend income:                                                           |   |   |   |   |   |   |
| Loans, including fees                                                                   |   | $ | 22,649 |  |   | $ | 23,186 |  |   | $ | 23,537 |  |
| Interest and dividends on securities                                                    |   | 1,684 |  |   | 1,615 |  |   | 1,288 |  |
| Other interest-earning assets                                                           |   | 64 |  |   | 49 |  |   | 32 |  |
| Total interest and dividend income                                                      |   | 24,397 |  |   | 24,850 |  |   | 24,857 |  |
|                                                                                    |   |   |   |   |   |   |
| Interest expense:                                                                       |   |   |  |   |   |  |   |   |  |
| Deposits                                                                                |   | 4,412 |  |   | 5,198 |  |   | 5,930 |  |
| Securities sold under agreements to repurchase                                          |   | 13 |  |   | 36 |  |   | 68 |  |
| Other borrowed funds                                                                    |   | 1,202 |  |   | 1,668 |  |   | 2,018 |  |
| Total interest expense                                                                  |   | 5,627 |  |   | 6,902 |  |   | 8,016 |  |
|                                                                                    |   |   |   |   |   |   |
| Net interest income                                                                     |   | 18,770 |  |   | 17,948 |  |   | 16,841 |  |
| Provision for loan losses                                                               |   | 442 |  |   | 842 |  |   | 1,223 |  |
| Net interest income after provision for loan losses                                     |   | 18,328 |  |   | 17,106 |  |   | 15,618 |  |
|                                                                                    |   |   |   |   |   |   |
| Non-interest income:                                                                    |   |   |  |   |   |  |   |   |  |
| Service charges, fee and commissions                                                    |   | 2,228 |  |   | 1,964 |  |   | 1,716 |  |
| Loan sales and servicing, net                                                           |   | 667 |  |   | 373 |  |   | 365 |  |
| Net gain on sales of securities available-for-sale                                      |   | — |  |   | 12 |  |   | 158 |  |
| Loss on sale of other real estate owned                                                 |   | (249 | ) |   | (126 | ) |   | (22 | ) |
| Other than temporary impairment charge                                                  |   | (37 | ) |   | — |  |   | (13 | ) |
| Income from bank owned life insurance                                                   |   | 380 |  |   | 395 |  |   | 422 |  |
| Other non-interest income                                                               |   | 34 |  |   | 32 |  |   | — |  |
| Total non-interest income                                                               |   | 3,023 |  |   | 2,650 |  |   | 2,626 |  |
|                                                                                    |   |   |   |   |   |   |
| Non-interest expenses:                                                                  |   |   |  |   |   |  |   |   |  |
| Salaries and employee benefits                                                          |   | 10,429 |  |   | 10,895 |  |   | 10,407 |  |
| Occupancy expenses                                                                      |   | 1,476 |  |   | 1,534 |  |   | 1,551 |  |
| Furniture and equipment                                                                 |   | 798 |  |   | 728 |  |   | 702 |  |
| FDIC insurance assessment                                                               |   | 357 |  |   | 537 |  |   | 422 |  |
| Data processing                                                                         |   | 1,119 |  |   | 1,166 |  |   | 1,207 |  |
| Professional fees                                                                       |   | 550 |  |   | 547 |  |   | 577 |  |
| Advertising                                                                             |   | 594 |  |   | 571 |  |   | 501 |  |
| Stationery, supplies and postage                                                        |   | 337 |  |   | 362 |  |   | 315 |  |
| Other non-interest expense                                                              |   | 2,645 |  |   | 2,394 |  |   | 2,327 |  |
| Total non-interest expenses                                                             |   | 18,305 |  |   | 18,734 |  |   | 18,009 |  |
|                                                                                    |   |   |   |   |   |   |
| Income before income tax expense (benefit)                                              |   | 3,046 |  |   | 1,022 |  |   | 235 |  |
| Income tax expense (benefit)                                                            |   | 581 |  |   | (78 | ) |   | (230 | ) |
| Net income                                                                              |   | $ | 2,465 |  |   | $ | 1,100 |  |   | $ | 465 |  |
|                                                                                    |   |   |   |   |   |   |
| Earnings per share:                                                                     |   |   |  |   |   |  |   |   |  |
| Basic                                                                                   |   | $ | 0.49 |  |   | $ | 0.21 |  |   | $ | 0.08 |  |
| Diluted                                                                                 |   | $ | 0.48 |  |   | $ | 0.21 |  |   | $ | 0.08 |  |
| Adjusted weighted average common shares outstanding                                     |   |   |  |   |   |  |   |   |  |
| Basic                                                                                   |   | 5,072,875 |  |   | 5,335,811 |  |   | 5,662,864 |  |
| Diluted                                                                                 |   | 5,088,233 |  |   | 5,360,749 |  |   | 5,668,596 |  |
|                                                                                    |
| The accompanying notes are an integral part of these consolidated financial statements. |   |   |  |

----

|                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                              |   | Years Ended December 31, |
|                                                                                                              |   | 2012 |   | 2011 |   | 2010 |
|                                                                                                              |   | (In Thousands) |
| Net income                                                                                                        |   | $ | 2,465 |  |   | $ | 1,100 |  |   | $ | 465 |  |
|                                                                                                              |   |   |   |   |   |   |
| Other comprehensive income (loss), net of tax                                                                     |   |   |   |   |   |   |
| Securities available-for-sale:                                                                                    |   |   |   |   |   |   |
|          Net unrealized holding gains (losses) arising during period |   | 8 |  |   | (37 | ) |   | 88 |  |
|          Other than temporary impairment charge realized in income   |   | 37 |  |   | — |  |   | 13 |  |
|     Reclassification adjustment for gains realized in net income                              |   | — |  |   | (12 | ) |   | (158 | ) |
|         Tax effect                                                        |   | (16 | ) |   | 17 |  |   | 20 |  |
| Total other comprehensive income (loss), net of tax                                                               |   | 29 |  |   | (32 | ) |   | (37 | ) |
| Total comprehensive income                                                                                        |   | $ | 2,494 |  |   | $ | 1,068 |  |   | $ | 428 |  |

----

|                                                                                                      |
|------------------------------------------------------------------------------------------------------|
|                                                                                                      |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                 | CommonStock |   | TreasuryStock |   | AdditionalPaid-inCapital |   | UnearnedCompensation(EquityIncentivePlan) |  |   | UnearnedCompensation(ESOP) |   | RetainedEarnings |   | AccumulatedOtherComprehensive(Loss)Income |   | Total |
|                                                                                                 | (In Thousands, except number of shares) |   |   |
| 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 (net of income tax benefit of $87)                                              | — |  |   | — |  |   | 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 |  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                                                |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income                                                                                           | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 1,100 |  |   | — |  |   | 1,100 |  |
| Change in net unrealized gain on securities available-for-sale (net of deferred income taxes of $17) | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (32 | ) |   | (32 | ) |
| Total comprehensive ==income                                                                         |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   | 1,068 |  |
| Treasury stock purchased (275,675 shares)                                                            | — |  |   | (3,895 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (3,895 | ) |
| Stock options exercised                                                                              | — |  |   | — |  |   | (6 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (6 | ) |
| Change in unearned compensation:                                                                     |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Stock option expense (net of income tax benefit of $89)                                              | — |  |   | — |  |   | 415 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 415 |  |
| Restricted stock award expense                                                                       | — |  |   | — |  |   | 19 |  |   | 885 |  |   | — |  |   | — |  |   | — |  |   | 904 |  |
| Common stock held by ESOP committed to be released                                                   | — |  |   | — |  |   | 117 |  |   | — |  |   | 297 |  |   | — |  |   | — |  |   | 414 |  |
| Balance at December 31, 2011                                                                         | $ | 72,479 |  |   | $ | (22,190 | ) |   | $ | 2,800 |  |   | $ | (546 | ) |   | $ | (4,166 | ) |   | $ | 42,408 |  |   | $ | (3 | ) |   | $ | 90,782 |  |
|                                                                                                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Comprehensive income:                                                                                |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Net income                                                                                           | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 2,465 |  |   | — |  |   | 2,465 |  |
| Change in net unrealized loss on securities available-for-sale (net of deferred income taxes of $16) | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 29 |  |   | 29 |  |
| Total comprehensive income                                                                           |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   | 2,494 |  |
| Treasury stock purchased (307,718 shares)                                                            | — |  |   | (4,377 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | (4,377 | ) |
| Adjustment to treasury shares                                                                        | — |  |   | — |  |   | — |  |   | 32 |  |   | — |  |   | — |  |   | — |  |   | 32 |  |
| Stock options exercised                                                                              | — |  |   | — |  |   | (53 | ) |   | — |  |   | — |  |   | — |  |   | — |  |   | (53 | ) |
| Change in unearned compensation:                                                                     |   |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Stock option expense (net of income tax benefit of $51)                                              | — |  |   | — |  |   | 278 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 278 |  |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Restricted stock award expense                                                          | — |  |   | — |  |   | (113 | ) |   | 496 |  |   | — |  |   | — |  |   | — |  |   | 383 |  |
| Common stock held by ESOP committed to be released                                      | — |  |   | — |  |   | 132 |  |   | — |  |   | 298 |  |   | — |  |   | — |  |   | 430 |  |
| Balance at December 31, 2012                                                            | $ | 72,479 |  |   | $ | (26,567 | ) |   | $ | 3,044 |  |   | $ | (18 | ) |   | $ | (3,868 | ) |   | $ | 44,873 |  |   | $ | 26 |  |   | $ | 89,969 |  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |   |  |   |   |  |

----

|                                                                                         |
|-----------------------------------------------------------------------------------------|
|                                                                                         |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                    |   | Years Ended December 31, |
|                                                                                    |   | 2012 |   | 2011 |   | 2010 |
| Cash flows from operating activities:                                                   |   | (In Thousands) |
| Net income                                                                              |   | $ | 2,465 |  |   | $ | 1,100 |  |   | $ | 465 |  |
| Adjustments to reconcile net income to net cash                                         |   |   |  |   |   |  |   |   |  |
| provided by operating activities:                                                       |   |   |  |   |   |  |   |   |  |
| Depreciation and amortization                                                           |   | 906 |  |   | 988 |  |   | 1,007 |  |
| Provision for loan losses                                                               |   | 442 |  |   | 842 |  |   | 1,223 |  |
| Increase in cash surrender value of life insurance                                      |   | (380 | ) |   | (395 | ) |   | (422 | ) |
| Net realized gain on sales of securities available-for-sale                             |   | — |  |   | (12 | ) |   | (158 | ) |
| Other than temporary impairment charge                                                  |   | 37 |  |   | — |  |   | 13 |  |
| Realized gains on sales of mortgages                                                    |   | (187 | ) |   | (180 | ) |   | (169 | ) |
| Net loss on sales and write downs of other real estate owned                            |   | 249 |  |   | 126 |  |   | 22 |  |
| Net change in loans originated for resale                                               |   | 1,635 |  |   | 253 |  |   | (1,354 | ) |
| Deferred income tax benefit                                                             |   | (375 | ) |   | (408 | ) |   | (337 | ) |
| Decrease in FDIC prepaid insurance                                                      |   | 357 |  |   | 537 |  |   | 422 |  |
| Decrease in other assets                                                                |   | 233 |  |   | 21 |  |   | 587 |  |
| (Increase) decrease in accrued interest receivable                                      |   | (40 | ) |   | 371 |  |   | (268 | ) |
| Increase (decrease) in other liabilities                                                |   | 199 |  |   | 242 |  |   | (85 | ) |
| Change in unearned compensation                                                         |   | 1,091 |  |   | 1,733 |  |   | 1,626 |  |
| Net cash provided by operating activities                                               |   | 6,632 |  |   | 5,218 |  |   | 2,572 |  |
| Cash flows from investing activities:                                                   |   |   |  |   |   |  |   |   |  |
| Additions to premises and equipment                                                     |   | (437 | ) |   | (351 | ) |   | (582 | ) |
| Loan originations and principal collections, net                                        |   | (22,821 | ) |   | (15,301 | ) |   | (7,479 | ) |
| Proceeds from sales of other real estate owned                                          |   | 730 |  |   | 543 |  |   | 376 |  |
| Proceeds from sales of securities available-for-sale                                    |   | — |  |   | 17 |  |   | 228 |  |
| Purchases of securities available-for-sale                                              |   | — |  |   | (304 | ) |   | — |  |
| Purchases of securities held-to-maturity                                                |   | (49,833 | ) |   | (98,864 | ) |   | (114,100 | ) |
| Maturities of securities held-to-maturity                                               |   | 62,182 |  |   | 92,330 |  |   | 105,072 |  |
| Proceeds from principal paydowns of securities held-to-maturity                         |   | 1,928 |  |   | 2,404 |  |   | 2,309 |  |
| Net purchase of FHLB stock                                                              |   | 213 |  |   | — |  |   | (183 | ) |
| Net cash used in investing activities                                                   |   | (8,038 | ) |   | (19,526 | ) |   | (14,359 | ) |
| Cash flows from financing activities:                                                   |   |   |  |   |   |  |   |   |  |
| Net increase in deposits                                                                |   | 12,800 |  |   | 61,440 |  |   | 26,439 |  |
| Net decrease in securities sold under agreements to repurchase                          |   | (2,577 | ) |   | (5,632 | ) |   | (2,450 | ) |
| Proceeds from long-term FHLB advances                                                   |   | — |  |   | — |  |   | 24,500 |  |
| Payments on long-term FHLB advances                                                     |   | (25,933 | ) |   | (12,350 | ) |   | (16,560 | ) |
| Treasury stock purchased                                                                |   | (4,377 | ) |   | (3,895 | ) |   | (4,344 | ) |
| Stock options exercised                                                                 |   | (53 | ) |   | (6 | ) |   | — |  |
| Adjustment to treasury shares                                                           |   | 32 |  |   | — |  |   | — |  |
| Net cash (used) provided by financing activities                                        |   | (20,108 | ) |   | 39,557 |  |   | 27,585 |  |
|                                                                                    |   |   |   |   |   |   |
| Net (decrease) increase in cash and cash equivalents                                    |   | (21,514 | ) |   | 25,249 |  |   | 15,798 |  |
|                                                                                    |   |   |   |   |   |   |
| Cash and cash equivalents at beginning of year                                          |   | 61,122 |  |   | 35,873 |  |   | 20,075 |  |
|                                                                                    |   |   |   |   |   |   |
| Cash and cash equivalents at end of year                                                |   | $ | 39,608 |  |   | $ | 61,122 |  |   | $ | 35,873 |  |
|                                                                                    |   |   |   |   |   |   |
| Supplemental cash flow information:                                                     |   |   |  |   |   |  |   |   |  |
| Interest paid on deposits                                                               |   | $ | 4,412 |  |   | $ | 5,198 |  |   | $ | 5,930 |  |
| Interest paid on borrowings                                                             |   | 1,287 |  |   | 1,734 |  |   | 2,099 |  |
| Income taxes paid                                                                       |   | 767 |  |   | 123 |  |   | 239 |  |
| Transfers from loans to other real estate owned                                         |   | 639 |  |   | 1,318 |  |   | 566 |  |
| Gain on acquisition of other real estate owned                                          |   | 34 |  |   | 32 |  |   | — |  |
|                                                                                    |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |   |   |  |   |   |  |

----

|    |                                            |
|----|--------------------------------------------|
| 1. | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |

----

----

----

----

----

|                                                               |
|---------------------------------------------------------------|
|                                                               |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                          |   | Years Ended December 31, |
|                                                          |   | 2012 |   | 2011 |   | 2010 |
| Net income (in thousands)                                     |   | $ | 2,465 |  |   | $ | 1,100 |  |   | $ | 465 |  |
| Weighted average number of common shares                      |   |   |  |   |   |  |   |   |  |
| issued                                                        |   | 7,439,368 |  |   | 7,439,368 |  |   | 7,439,368 |  |
| Less: average number of treasury shares                       |   | (1,918,041 | ) |   | (1,569,482 | ) |   | (1,149,876 | ) |
| Less: average number of unallocated ESOP shares               |   | (416,605 | ) |   | (446,363 | ) |   | (476,121 | ) |
| Less: average number of nonvested restricted stock awards     |   | (31,847 | ) |   | (87,712 | ) |   | (150,507 | ) |
|                                                               |   |   |  |   |   |  |   |   |  |
| Adjusted weighted average number of common shares outstanding |   | 5,072,875 |  |   | 5,335,811 |  |   | 5,662,864 |  |
| Plus: dilutive nonvested restricted stock awards              |   | 15,358 |  |   | 24,938 |  |   | 5,732 |  |
| Weighted average number of diluted shares outstanding         |   | 5,088,233 |  |   | 5,360,749 |  |   | 5,668,596 |  |
| Net income per share:                                         |   |   |  |   |   |  |   |   |  |
| Basic- common stock                                           |   | $ | 0.49 |  |   | $ | 0.21 |  |   | $ | 0.08 |  |
| Basic- unvested share-based payment awards                    |   | $ | 0.49 |  |   | $ | 0.21 |  |   | $ | 0.08 |  |
| Diluted- common stock                                         |   | $ | 0.48 |  |   | $ | 0.21 |  |   | $ | 0.08 |  |
| Diluted- unvested share-based payment awards                  |   | $ | 0.48 |  |   | $ | 0.21 |  |   | $ | 0.08 |  |

----

|    |                                                 |
|----|-------------------------------------------------|
| 2. | RESTRICTIONS ON CASH AND AMOUNTS DUE FROM BANKS |

|    |            |
|----|------------|
| 3. | SECURITIES |

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                |   | December 31, 2012 |
|                                |   | AmortizedCost |   | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | FairValue |
|                                |   | (In Thousands) |
| Securities available-for-sale       |   |   |   |   |   |   |   |   |
| Marketable equity securities        |   | $ | 581 |  |   | $ | 40 |  |   | $ | — |  |   | $ | 621 |  |
| Total securities available-for-sale |   | $ | 581 |  |   | $ | 40 |  |   | $ | — |  |   | $ | 621 |  |
| Securities held-to-maturity         |   |   |  |   |   |  |   |   |  |   |   |  |
| U.S. Treasury securities            |   | $ | 13,691 |  |   | $ | 2 |  |   | $ | — |  |   | $ | 13,693 |  |
| Industrial revenue bonds            |   | 35,656 |  |   | 7,481 |  |   | — |  |   | 43,137 |  |
| Certificates of deposit             |   | 9,041 |  |   | 4 |  |   | — |  |   | 9,045 |  |
| Collateralized mortgage obligations |   | 1,180 |  |   | 53 |  |   | — |  |   | 1,233 |  |
| Total securities held-to-maturity   |   | $ | 59,568 |  |   | $ | 7,540 |  |   | $ | — |  |   | $ | 67,108 |  |
|                                |   |   |   |   |   |   |   |   |
| Non-marketable securities           |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank stock        |   | $ | 4,277 |  |   | $ | — |  |   | $ | — |  |   | $ | 4,277 |  |
| Banker's Bank stock                 |   | 183 |  |   | — |  |   | — |  |   | 183 |  |
| Total non-marketable securities     |   | $ | 4,460 |  |   | $ | — |  |   | $ | — |  |   | $ | 4,460 |  |

----

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                |   | December 31, 2011 |
|                                |   | AmortizedCost |   | GrossUnrealizedGains |   | GrossUnrealizedLosses |   | FairValue |
|                                |   | (In Thousands) |
| Securities available-for-sale       |   |   |   |   |   |   |   |   |
| Marketable equity securities        |   | $ | 618 |  |   | $ | 28 |  |   | $ | (33 | ) |   | $ | 613 |  |
| Total securities available-for-sale |   | $ | 618 |  |   | $ | 28 |  |   | $ | (33 | ) |   | $ | 613 |  |
| Securities held-to-maturity         |   |   |  |   |   |  |   |   |  |   |   |  |
| U.S. Treasury securities            |   | $ | 26,998 |  |   | $ | 1 |  |   | $ | (1 | ) |   | $ | 26,998 |  |
| Industrial revenue bonds            |   | 31,576 |  |   | 6,643 |  |   | — |  |   | 38,219 |  |
| Certificates of deposit             |   | 13,206 |  |   | 7 |  |   | — |  |   | 13,213 |  |
| Collateralized mortgage obligations |   | 2,072 |  |   | 105 |  |   | — |  |   | 2,177 |  |
| Total Securities held-to-maturity   |   | $ | 73,852 |  |   | $ | 6,756 |  |   | $ | (1 | ) |   | $ | 80,607 |  |
|                                |   |   |   |   |   |   |   |   |
| Non-marketable securities           |   |   |   |   |   |   |   |   |
| Federal Home Loan Bank stock        |   | $ | 4,489 |  |   | $ | — |  |   | $ | — |  |   | $ | 4,489 |  |
| Banker's Bank stock                 |   | 183 |  |   | — |  |   | — |  |   | 183 |  |
| Total non-marketable securities     |   | $ | 4,672 |  |   | $ | — |  |   | $ | — |  |   | $ | 4,672 |  |

|                    |
|--------------------|
|                    |  |  |  |  |  |  |  |  |
|               |   | Held-to-maturity |
|               |   | AmortizedCost |   | Fair Value |
|               |   | (In Thousands) |
| Within 1 year      |   | $ | 22,732 |  |   | $ | 22,738 |  |
| From 1 to 5 years  |   | 1,984 |  |   | 2,297 |  |
| From 5 to 10 years |   | 9,349 |  |   | 10,427 |  |
| Over 10 years      |   | 25,503 |  |   | 31,646 |  |
|               |   | $ | 59,568 |  |   | $ | 67,108 |  |

----

|                                       |
|---------------------------------------|
|                                       |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                  |   | December 31, 2011 |
|                                  |   | 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          |   | $ | 221 |  |   | $ | (33 | ) |   | $ | — |  |   | $ | — |  |   | $ | 221 |  |   | $ | (33 | ) |
| U.S. Treasury securities              |   | 13,998 |  |   | (1 | ) |   | — |  |   | — |  |   | 13,998 |  |   | (1 | ) |
| Total temporarily impaired securities |   | $ | 14,219 |  |   | $ | (34 | ) |   | $ | — |  |   | $ | — |  |   | $ | 14,219 |  |   | $ | (34 | ) |

----

----

|                                                                                                                   |
|-------------------------------------------------------------------------------------------------------------------|
|                                                                                                                   |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                              |   | December 31, 2012 |   | December 31, 2011 |
|                                                                                                              |   | Amount |   | Percentof Total |   | Amount |   | Percentof Total |
|                                                                                                              |   | (In Thousands) |
| Real estate loans:                                                                                                |   |   |   |   |   |   |   |   |
|    Residential real estate1                                                                   |   | $ | 120,265 |  |   | 25.7 | % |   | $ | 123,294 |  |   | 27.6 | % |
|    Home equity                                                                                     |   | 31,731 |  |   | 6.8 | % |   | 29,790 |  |   | 6.7 | % |
|    Commercial                                                                                      |   | 189,472 |  |   | 40.4 | % |   | 174,761 |  |   | 39.0 | % |
|          Total                                                       |   | 341,468 |  |   | 72.9 | % |   | 327,845 |  |   | 73.3 | % |
|    Construction-residential                                                                        |   | 4,334 |  |   | 0.9 | % |   | 5,597 |  |   | 1.3 | % |
|    Construction-commercial                                                                         |   | 35,781 |  |   | 7.6 | % |   | 31,706 |  |   | 7.0 | % |
|          Total construction                                          |   | 40,115 |  |   | 8.5 | % |   | 37,303 |  |   | 8.3 | % |
|                Total real estate loans |   | 381,583 |  |   | 81.4 | % |   | 365,148 |  |   | 81.6 | % |
| Consumer loans                                                                                                    |   | 2,492 |  |   | 0.6 | % |   | 2,566 |  |   | 0.6 | % |
| Commercial loans                                                                                                  |   | 84,583 |  |   | 18.0 | % |   | 79,412 |  |   | 17.8 | % |
|          Total loans                                                 |   | 468,658 |  |   | 100.0 | % |   | 447,126 |  |   | 100.0 | % |
|    Deferred loan origination costs, net                                                            |   | 917 |  |   |   |  |   | 921 |  |   |   |  |
|    Allowance for loan losses                                                                       |   | (4,364 | ) |   |   |  |   | (4,576 | ) |   |   |  |
|       Loans, net                                                                    |   | $ | 465,211 |  |   |   |  |   | $ | 443,471 |  |   |   |  |

----

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   | Commercial Credit Risk Exposure |
|                                            |   | Commercial |   | CommercialConstruction |   | CommercialReal Estate |   | Total |
|                                            |   | (In Thousands) |
| Pass                                            |   | $ | 75,656 |  |   | $ | 23,214 |  |   | $ | 178,337 |  |   | $ | 277,207 |  |
| Special mention                                 |   | 8,006 |  |   | 8,164 |  |   | 7,529 |  |   | 23,699 |  |
| Substandard                                     |   | 874 |  |   | 4,403 |  |   | 3,606 |  |   | 8,883 |  |
| Doubtful                                        |   | 47 |  |   | — |  |   | — |  |   | 47 |  |
| Loss                                            |   | — |  |   | — |  |   | — |  |   | — |  |
|     Total commercial loans  |   | $ | 84,583 |  |   | $ | 35,781 |  |   | $ | 189,472 |  |   | $ | 309,836 |  |
|                                            |   |   |   |   |   |   |   |   |
|                                            |   | Residential Credit Risk Exposure |
|                                            |   | ResidentialReal Estate |   | ResidentialConstruction |   |   |   | Total |
|                                            |   | (In Thousands) |
| Pass                                            |   | $ | 117,678 |  |   | $ | 4,003 |  |   |   |  |   | $ | 121,681 |  |
| Substandard (nonaccrual)                        |   | 2,587 |  |   | 331 |  |   |   |  |   | 2,918 |  |
|     Total residential loans |   | $ | 120,265 |  |   | $ | 4,334 |  |   |   |  |   | $ | 124,599 |  |
|                                            |   |   |   |   |   |   |   |   |
|                                            |   | Consumer Credit Risk Exposure |
|                                            |   | Consumer |   | Home Equity |   |   |  |   | Total |
|                                            |   | (In Thousands) |
| Performing                                      |   | $ | 2,468 |  |   | $ | 31,635 |  |   |   |  |   | $ | 34,103 |  |
| Nonperforming (nonaccrual)                      |   | 24 |  |   | 96 |  |   |   |  |   | 120 |  |
|     Total consumer loans    |   | $ | 2,492 |  |   | $ | 31,731 |  |   |   |  |   | $ | 34,223 |  |

----

|                                                 |
|-------------------------------------------------|
|                                                 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                            |   | Commercial Credit Risk Exposure |
|                                            |   | Commercial |   | CommercialConstruction |   | CommercialReal Estate |   | Total |
|                                            |   | (In Thousands) |
| Pass                                            |   | $ | 74,699 |  |   | $ | 19,904 |  |   | $ | 165,168 |  |   | $ | 259,771 |  |
| Special mention                                 |   | 2,855 |  |   | 11,586 |  |   | 5,622 |  |   | 20,063 |  |
| Substandard                                     |   | 1,858 |  |   | 216 |  |   | 3,971 |  |   | 6,045 |  |
| Doubtful                                        |   | — |  |   | — |  |   | — |  |   | — |  |
| Loss                                            |   | — |  |   | — |  |   | — |  |   | — |  |
|     Total commercial loans  |   | $ | 79,412 |  |   | $ | 31,706 |  |   | $ | 174,761 |  |   | $ | 285,879 |  |
|                                            |   |   |   |   |   |   |   |   |
|                                            |   | Residential Credit Risk Exposure |
|                                            |   | ResidentialReal Estate |   | ResidentialConstruction |   |   |   | Total |
|                                            |   | (In Thousands) |
| Pass                                            |   | $ | 121,072 |  |   | $ | 5,597 |  |   |   |  |   | $ | 126,669 |  |
| Substandard (nonaccrual)                        |   | 2,222 |  |   | — |  |   |   |  |   | 2,222 |  |
|     Total residential loans |   | $ | 123,294 |  |   | $ | 5,597 |  |   |   |  |   | $ | 128,891 |  |
|                                            |   |   |   |   |   |   |   |   |
|                                            |   | Consumer Credit Risk Exposure |
|                                            |   | Consumer |   | Home Equity |   |   |  |   | Total |
|                                            |   | (In Thousands) |
| Performing                                      |   | $ | 2,487 |  |   | $ | 29,484 |  |   |   |  |   | $ | 31,971 |  |
| Nonperforming (nonaccrual)                      |   | 79 |  |   | 306 |  |   |   |  |   | 385 |  |
|     Total consumer loans    |   | $ | 2,566 |  |   | $ | 29,790 |  |   |   |  |   | $ | 32,356 |  |

----

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                |   | ResidentialReal Estate |   | ResidentialConstruction |   | CommercialReal Estate |   | CommercialConstruction |   | Commercial |   | ConsumerLoans |   | HomeEquity |   | Total |
| Allowance for loan losses                           | (In Thousands) |
| Balance as of                     December 31, 2011 |   | $ | 549 |  |   | $ | 89 |  |   | $ | 1,891 |  |   | $ | 526 |  |   | $ | 1,343 |  |   | $ | 47 |  |   | $ | 131 |  |   | $ | 4,576 |  |
| Provision (reduction) for loan losses               |   | 84 |  |   | 4 |  |   | 140 |  |   | (24 | ) |   | 158 |  |   | 52 |  |   | 28 |  |   | 442 |  |
| Recoveries                                          |   | 1 |  |   | — |  |   | — |  |   | — |  |   | 4 |  |   | 19 |  |   | — |  |   | 24 |  |
| Loans charged off                                   |   | (98 | ) |   | — |  |   | (65 | ) |   | — |  |   | (406 | ) |   | (74 | ) |   | (35 | ) |   | (678 | ) |
| Balance as of                December 31, 2012      |   | $ | 536 |  |   | $ | 93 |  |   | $ | 1,966 |  |   | $ | 502 |  |   | $ | 1,099 |  |   | $ | 44 |  |   | $ | 124 |  |   | $ | 4,364 |  |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses ending balance            |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Collectively evaluated for impairment               |   | $ | 353 |  |   | $ | 62 |  |   | $ | 1,919 |  |   | $ | 502 |  |   | $ | 1,099 |  |   | $ | 44 |  |   | $ | 124 |  |   | $ | 4,103 |  |
| Individually evaluated for impairment               |   | 183 |  |   | 31 |  |   | 47 |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 261 |  |
|                                                |   | $ | 536 |  |   | $ | 93 |  |   | $ | 1,966 |  |   | $ | 502 |  |   | $ | 1,099 |  |   | $ | 44 |  |   | $ | 124 |  |   | $ | 4,364 |  |
|                                                |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans ending balance                          |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Collectively evaluated for impairment               |   | $ | 117,611 |  |   | $ | 4,003 |  |   | $ | 186,293 |  |   | $ | 31,378 |  |   | $ | 83,917 |  |   | $ | 2,492 |  |   | $ | 31,635 |  |   | $ | 457,329 |  |
| Individually evaluated for impairment               |   | 2,654 |  |   | 331 |  |   | 3,179 |  |   | 4,403 |  |   | 666 |  |   | — |  |   | 96 |  |   | 11,329 |  |
|                                                |   | $ | 120,265 |  |   | $ | 4,334 |  |   | $ | 189,472 |  |   | $ | 35,781 |  |   | $ | 84,583 |  |   | $ | 2,492 |  |   | $ | 31,731 |  |   | $ | 468,658 |  |

----

|                                           |
|-------------------------------------------|
|                                           |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                      |   | ResidentialReal Estate |   | ResidentialConstruction |   | CommercialReal Estate |   | CommercialConstruction |   | Commercial |   | ConsumerLoans |   | HomeEquity |   | Total |
|                                      |   | (In Thousands) |
| Allowance for loan losses                 |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance as of           December 31, 2010 |   | $ | 513 |  |   | $ | 148 |  |   | $ | 1,783 |  |   | $ | 402 |  |   | $ | 1,429 |  |   | $ | 28 |  |   | $ | 128 |  |   | 4,431 |  |
| Provision for loan losses                 |   | 123 |  |   | 17 |  |   | 272 |  |   | 124 |  |   | 231 |  |   | 66 |  |   | 9 |  |   | 842 |  |
| Recoveries                                |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |   | 18 |  |   | — |  |   | 18 |  |
| Loans charged off                         |   | (87 | ) |   | (76 | ) |   | (164 | ) |   | — |  |   | (317 | ) |   | (65 | ) |   | (6 | ) |   | (715 | ) |
| Balance as of           December 31, 2011 |   | $ | 549 |  |   | $ | 89 |  |   | $ | 1,891 |  |   | $ | 526 |  |   | $ | 1,343 |  |   | $ | 47 |  |   | $ | 131 |  |   | $ | 4,576 |  |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Allowance for loan losses ending balance  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Collectively evaluated for impairment     |   | $ | 366 |  |   | $ | 89 |  |   | $ | 1,811 |  |   | $ | 504 |  |   | $ | 1,026 |  |   | $ | 47 |  |   | $ | 118 |  |   | $ | 3,961 |  |
| Individually evaluated for impairment     |   | 183 |  |   | — |  |   | 80 |  |   | 22 |  |   | 317 |  |   | — |  |   | 13 |  |   | 615 |  |
|                                      |   | $ | 549 |  |   | $ | 89 |  |   | $ | 1,891 |  |   | $ | 526 |  |   | $ | 1,343 |  |   | $ | 47 |  |   | $ | 131 |  |   | $ | 4,576 |  |
|                                      |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Total loans ending balance                |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Collectively evaluated for impairment     |   | $ | 121,072 |  |   | $ | 5,597 |  |   | $ | 170,855 |  |   | $ | 31,490 |  |   | $ | 77,749 |  |   | $ | 2,566 |  |   | $ | 29,484 |  |   | $ | 438,813 |  |
| Individually evaluated for impairment     |   | 2,222 |  |   | — |  |   | 3,906 |  |   | 216 |  |   | 1,663 |  |   | — |  |   | 306 |  |   | 8,313 |  |
|                                      |   | $ | 123,294 |  |   | $ | 5,597 |  |   | $ | 174,761 |  |   | $ | 31,706 |  |   | $ | 79,412 |  |   | $ | 2,566 |  |   | $ | 29,790 |  |   | $ | 447,126 |  |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          |   | RecordedInvestment |   | UnpaidBalance |   | AverageRecordedInvestment |   | RelatedAllowance |   | Interest IncomeRecognized |
|                                          |   | (In Thousands) |
| Impaired loans without a valuation allowance: |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                       |   | $ | 1,512 |  |   | $ | 1,512 |  |   | $ | 1,228 |  |   | $ | — |  |   | $ | 53 |  |
| Residential construction                      |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Commercial real estate                        |   | 2,835 |  |   | 3,225 |  |   | 3,410 |  |   | — |  |   | 141 |  |
| Commercial construction                       |   | 4,403 |  |   | 4,403 |  |   | 2,691 |  |   | — |  |   | 131 |  |
| Commercial                                    |   | 666 |  |   | 891 |  |   | 723 |  |   | — |  |   | 25 |  |
| Consumer                                      |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Home equity                                   |   | 96 |  |   | 96 |  |   | 217 |  |   | — |  |   | 5 |  |
| Total                                         |   | $ | 9,512 |  |   | $ | 10,127 |  |   | $ | 8,269 |  |   | $ | — |  |   | $ | 355 |  |
| Impaired loans with a valuation allowance:    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Residential real estate                       |   | $ | 1,142 |  |   | $ | 1,142 |  |   | $ | 722 |  |   | $ | 183 |  |   | $ | 48 |  |
| Residential construction                      |   | 331 |  |   | 331 |  |   | 265 |  |   | 31 |  |   | — |  |
| Commercial real estate                        |   | 344 |  |   | 344 |  |   | 422 |  |   | 47 |  |   | 20 |  |
| Commercial construction                       |   | — |  |   | — |  |   | 43 |  |   | — |  |   | — |  |
| Commercial                                    |   | — |  |   | — |  |   | 623 |  |   | — |  |   | — |  |
| Consumer                                      |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Home equity                                   |   | — |  |   | — |  |   | 34 |  |   | — |  |   | — |  |
| Total                                         |   | $ | 1,817 |  |   | $ | 1,817 |  |   | $ | 2,109 |  |   | $ | 261 |  |   | $ | 68 |  |
| Total impaired loans:                         |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Residential real estate                       |   | $ | 2,654 |  |   | $ | 2,654 |  |   | $ | 1,950 |  |   | $ | 183 |  |   | $ | 101 |  |
| Residential construction                      |   | 331 |  |   | 331 |  |   | 265 |  |   | 31 |  |   | — |  |
| Commercial real estate                        |   | 3,179 |  |   | 3,569 |  |   | 3,832 |  |   | 47 |  |   | 161 |  |
| Commercial construction                       |   | 4,403 |  |   | 4,403 |  |   | 2,734 |  |   | — |  |   | 131 |  |
| Commercial                                    |   | 666 |  |   | 891 |  |   | 1,346 |  |   | — |  |   | 25 |  |
| Consumer                                      |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Home equity                                   |   | 96 |  |   | 96 |  |   | 251 |  |   | — |  |   | 5 |  |
| Total                                         |   | $ | 11,329 |  |   | $ | 11,944 |  |   | $ | 10,378 |  |   | $ | 261 |  |   | $ | 423 |  |

----

|                                               |
|-----------------------------------------------|
|                                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                          |   | RecordedInvestment |   | UnpaidBalance |   | AverageRecordedInvestment |   | RelatedAllowance |   | Interest IncomeRecognized |
|                                          |   | (In Thousands) |
| Impaired loans without a valuation allowance: |   |   |   |   |   |   |   |   |   |   |
| Residential real estate                       |   | $ | 1,127 |  |   | $ | 1,127 |  |   | $ | 1,816 |  |   | $ | — |  |   | $ | 32 |  |
| Residential construction                      |   | — |  |   | — |  |   | 19 |  |   | — |  |   | — |  |
| Commercial real estate                        |   | 3,424 |  |   | 3,749 |  |   | 2,710 |  |   | — |  |   | 191 |  |
| Commercial construction                       |   | — |  |   | — |  |   | 600 |  |   | — |  |   | — |  |
| Commercial                                    |   | 580 |  |   | 580 |  |   | 791 |  |   | — |  |   | 21 |  |
| Consumer                                      |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Home equity                                   |   | 271 |  |   | 271 |  |   | 139 |  |   | — |  |   | 15 |  |
| Total                                         |   | $ | 5,402 |  |   | $ | 5,727 |  |   | $ | 6,075 |  |   | $ | — |  |   | $ | 259 |  |
| Impaired loans with a valuation allowance:    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Residential real estate                       |   | $ | 1,095 |  |   | $ | 1,095 |  |   | $ | 688 |  |   | $ | 183 |  |   | $ | 39 |  |
| Residential construction                      |   | — |  |   | — |  |   | 97 |  |   | — |  |   | — |  |
| Commercial real estate                        |   | 482 |  |   | 482 |  |   | 792 |  |   | 80 |  |   | 25 |  |
| Commercial construction                       |   | 216 |  |   | 216 |  |   | 222 |  |   | 22 |  |   | 14 |  |
| Commercial                                    |   | 1,083 |  |   | 1,083 |  |   | 2,085 |  |   | 317 |  |   | 52 |  |
| Consumer                                      |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Home equity                                   |   | 35 |  |   | 35 |  |   | 14 |  |   | 13 |  |   | 2 |  |
| Total                                         |   | $ | 2,911 |  |   | $ | 2,911 |  |   | $ | 3,898 |  |   | $ | 615 |  |   | $ | 132 |  |
| Total impaired loans:                         |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Residential real estate                       |   | $ | 2,222 |  |   | $ | 2,222 |  |   | $ | 2,504 |  |   | $ | 183 |  |   | $ | 71 |  |
| Residential construction                      |   | — |  |   | — |  |   | 116 |  |   | — |  |   | — |  |
| Commercial real estate                        |   | 3,906 |  |   | 4,231 |  |   | 3,502 |  |   | 80 |  |   | 216 |  |
| Commercial construction                       |   | 216 |  |   | 216 |  |   | 822 |  |   | 22 |  |   | 14 |  |
| Commercial                                    |   | 1,663 |  |   | 1,663 |  |   | 2,876 |  |   | 317 |  |   | 73 |  |
| Consumer                                      |   | — |  |   | — |  |   | — |  |   | — |  |   | — |  |
| Home equity                                   |   | 306 |  |   | 306 |  |   | 153 |  |   | 13 |  |   | 17 |  |
| Total                                         |   | $ | 8,313 |  |   | $ | 8,638 |  |   | $ | 9,973 |  |   | $ | 615 |  |   | $ | 391 |  |

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                     |   | 31-59 DaysPast Due |   | 60-89 DaysPast Due |   | 90 Days or Greater Past Due |   | TotalPast Due |   | Current |   | TotalLoans |   | Nonaccrual Loans |
|                     |   | (In Thousands) |
| Residential real estate  |   | $ | 2,568 |  |   | $ | 160 |  |   | $ | 1,575 |  |   | $ | 4,303 |  |   | $ | 115,962 |  |   | $ | 120,265 |  |   | $ | 2,587 |  |
| Residential construction |   | — |  |   | — |  |   | 331 |  |   | 331 |  |   | 4,003 |  |   | 4,334 |  |   | 331 |  |
| Commercial real estate   |   | 526 |  |   | 293 |  |   | 609 |  |   | 1,428 |  |   | 188,044 |  |   | 189,472 |  |   | 902 |  |
| Commercial construction  |   | — |  |   | — |  |   | — |  |   | — |  |   | 35,781 |  |   | 35,781 |  |   | — |  |
| Commercial               |   | 491 |  |   | 61 |  |   | 47 |  |   | 599 |  |   | 83,984 |  |   | 84,583 |  |   | 47 |  |
| Consumer                 |   | 57 |  |   | — |  |   | 1 |  |   | 58 |  |   | 2,434 |  |   | 2,492 |  |   | 24 |  |
| Home equity              |   | 128 |  |   | 18 |  |   | 60 |  |   | 206 |  |   | 31,525 |  |   | 31,731 |  |   | 96 |  |
| Total                    |   | $ | 3,770 |  |   | $ | 532 |  |   | $ | 2,623 |  |   | $ | 6,925 |  |   | $ | 461,733 |  |   | $ | 468,658 |  |   | $ | 3,987 |  |

----

|                          |
|--------------------------|
|                          |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                     |   | 31-59 DaysPast Due |   | 60-89 DaysPast Due |   | 90 Days or Greater Past Due |   | TotalPast Due |   | Current |   | TotalLoans |   | Nonaccrual Loans |
|                     |   | (In Thousands) |
| Residential real estate  |   | $ | 1,693 |  |   | $ | 179 |  |   | $ | 1,379 |  |   | $ | 3,251 |  |   | $ | 120,043 |  |   | $ | 123,294 |  |   | $ | 2,222 |  |
| Residential construction |   | — |  |   | 331 |  |   | — |  |   | 331 |  |   | 5,266 |  |   | 5,597 |  |   | — |  |
| Commercial real estate   |   | 738 |  |   | 565 |  |   | 672 |  |   | 1,975 |  |   | 172,786 |  |   | 174,761 |  |   | 798 |  |
| Commercial construction  |   | — |  |   | — |  |   | — |  |   | — |  |   | 31,706 |  |   | 31,706 |  |   | — |  |
| Commercial               |   | 79 |  |   | 298 |  |   | 849 |  |   | 1,226 |  |   | 78,186 |  |   | 79,412 |  |   | 1,306 |  |
| Consumer                 |   | 83 |  |   | 27 |  |   | 74 |  |   | 184 |  |   | 2,382 |  |   | 2,566 |  |   | 79 |  |
| Home equity              |   | 189 |  |   | — |  |   | 306 |  |   | 495 |  |   | 29,295 |  |   | 29,790 |  |   | 306 |  |
| Total                    |   | $ | 2,782 |  |   | $ | 1,400 |  |   | $ | 3,280 |  |   | $ | 7,462 |  |   | $ | 439,664 |  |   | $ | 447,126 |  |   | $ | 4,711 |  |

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                          |   | Number ofModifications |   | RecordedInvestmentPre-Modification |   | RecordedInvestmentPost-Modification |   | CurrentBalance |
|                          |   | (In Thousands) |
| Residential real estate       |   | 1 |  |   | $ | 118 |  |   | $ | 127 |  |   | $ | 125 |  |
| Residential construction      |   | — |  |   | — |  |   | — |  |   | — |  |
| Commercial real estate        |   | 3 |  |   | 661 |  |   | 698 |  |   | 696 |  |
| Commercial construction       |   | — |  |   | — |  |   | — |  |   | — |  |
| Commercial                    |   | 2 |  |   | 212 |  |   | 212 |  |   | 60 |  |
| Consumer                      |   | 1 |  |   | 27 |  |   | 27 |  |   | 23 |  |
| Home equity                   |   | 1 |  |   | 38 |  |   | 38 |  |   | 37 |  |
|     Total |   | 8 |  |   | $ | 1,056 |  |   | $ | 1,102 |  |   | $ | 941 |  |

----

|                               |
|-------------------------------|
|                               |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                          |   | Number ofModifications |   | RecordedInvestmentPre-Modification |   | RecordedInvestmentPost-Modification |   | CurrentBalance |
|                          |   | (In Thousands) |
| Residential real estate       |   | 1 |  |   | $ | 242 |  |   | $ | 255 |  |   | $ | 252 |  |
| Residential construction      |   | — |  |   | — |  |   | — |  |   | — |  |
| Commercial real estate        |   | 3 |  |   | 516 |  |   | 516 |  |   | 512 |  |
| Commercial construction       |   | — |  |   | — |  |   | — |  |   | — |  |
| Commercial                    |   | 1 |  |   | 110 |  |   | 110 |  |   | 109 |  |
| Consumer                      |   | — |  |   | — |  |   | — |  |   | — |  |
| Home equity                   |   | — |  |   | — |  |   | — |  |   | — |  |
|     Total |   | 5 |  |   | $ | 868 |  |   | $ | 881 |  |   | $ | 873 |  |

|    |                |
|----|----------------|
| 5. | LOAN SERVICING |

----

|                                                    |
|----------------------------------------------------|
|                                                    |  |  |  |  |  |  |  |  |  |  |  |  |
|                                               |   | Years Ended December 31, |
|                                               |   | 2012 |   | 2011 |   | 2010 |
|                                               |   | (In Thousands) |
| Balance at the beginning of year                   |   | $ | 344 |  |   | $ | 306 |  |   | $ | 297 |  |
| Capitalized mortgage servicing rights              |   | 187 |  |   | 180 |  |   | 169 |  |
| Change in valuation allowance                      |   | 20 |  |   | 18 |  |   | (37 | ) |
| Amortization                                       |   | (183 | ) |   | (160 | ) |   | (123 | ) |
|     Balance at the end of year |   | $ | 368 |  |   | $ | 344 |  |   | $ | 306 |  |

|    |                                                |
|----|------------------------------------------------|
| 6. | PREMISES AND EQUIPMENT     |

|                                                           |
|-----------------------------------------------------------|
|                                                           |  |  |  |  |  |  |  |  |
|                                                      |   | December 31, |
|                                                      |   | 2012 |   | 2011 |
|                                                      |   | (In Thousands) |
| Land                                                      |   | $ | 1,529 |  |   | $ | 1,529 |  |
| Buildings                                                 |   | 9,752 |  |   | 9,663 |  |
| Leasehold improvements                                    |   | 1,447 |  |   | 1,432 |  |
| Furniture and equipment                                   |   | 5,665 |  |   | 5,383 |  |
| Equipment                                                 |   | 285 |  |   | 241 |  |
|                                                      |   | 18,678 |  |   | 18,248 |  |
| Accumulated depreciation                                  |   | (9,219 | ) |   | (8,512 | ) |
|      Premises and equipment, net |   | $ | 9,459 |  |   | $ | 9,736 |  |

|    |          |
|----|----------|
| 7. | DEPOSITS |

|                                                              |
|--------------------------------------------------------------|
|                                                              |  |  |  |  |  |  |  |  |
|                                                         |   | December 31, |
|                                                         |   | 2012 |   | 2011 |
|                                                         |   | (In Thousands) |
| Demand deposits                                              |   | $ | 75,407 |  |   | $ | 68,799 |  |
| NOW accounts                                                 |   | 36,711 |  |   | 26,747 |  |
| Savings accounts                                             |   | 48,882 |  |   | 47,122 |  |
| Money market deposit accounts                                |   | 127,730 |  |   | 97,606 |  |
|      Total non-certificate accounts |   | 288,730 |  |   | 240,274 |  |
| Certificate accounts less than $100,000                      |   | 87,787 |  |   | 103,776 |  |
| Certificate accounts $100,000 or more                        |   | 89,660 |  |   | 109,327 |  |
|      Total certificate accounts     |   | 177,447 |  |   | 213,103 |  |
|      Total deposits                 |   | $ | 466,177 |  |   | $ | 453,377 |  |

----

|        |
|--------|
|        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|   |   | December 31, 2012 |   | December 31, 2011 |
|   |   | (In Thousands) |
|   |   | Amount |   | WeightedAverageRate |   | Amount |   | WeightedAverageRate |
| 2012   |   | $ | — |  |   | — |  |   | $ | 108,162 |  |   | 1.21 | % |
| 2013   |   | 91,224 |  |   | 1.33 | % |   | 34,016 |  |   | 2.85 | % |
| 2014   |   | 40,292 |  |   | 2.40 | % |   | 33,342 |  |   | 2.71 | % |
| 2015   |   | 23,770 |  |   | 2.58 | % |   | 21,184 |  |   | 2.82 | % |
| 2016   |   | 16,925 |  |   | 1.93 | % |   | 16,399 |  |   | 1.98 | % |
| 2017   |   | 5,236 |  |   | 1.38 | % |   | — |  |   | — |  |
|   |   | $ | 177,447 |  |   | 1.80 | % |   | $ | 213,103 |  |   | 1.93 | % |

|    |                                                |
|----|------------------------------------------------|
| 8. | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE |

|                                                        |
|--------------------------------------------------------|
|                                                        |  |  |  |  |  |  |  |  |
|                                                   |   | Years Ended December 31, |
|                                                   |   | 2012 |   | 2011 |
|                                                   |   | (In Thousands) |
| Balance at end of year                                 |   | $ | 9,763 |  |   | $ | 12,340 |  |
| Average amount outstanding during the year             |   | 9,027 |  |   | 17,554 |  |
| Interest expense incurred during the year              |   | 13 |  |   | 36 |  |
| Maximum amount outstanding at any month-end            |   | 12,982 |  |   | 24,560 |  |
| Weighted average interest rate during the year         |   | 0.14 | % |   | 0.21 | % |
| Weighted average interest rate on end of year balances |   | 0.12 | % |   | 0.18 | % |

----

|    |                                      |
|----|--------------------------------------|
| 9. | ADVANCES FROM FEDERAL HOME LOAN BANK |

|                                                                                     |
|-------------------------------------------------------------------------------------|
|                                                                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                |   |   |   | December 31, 2012 |   | December 31, 2011 |
|                                                                                |   |   |   | Amount |   | WeightedAverageRate |   | Amount |   | WeightedAverageRate |
|                                                                                |   |   |   | (In Thousands) |
| Fixed-rate FHLB advances maturing:                                                  |   |   |   |   |   |   |   |   |   |   |
| 2012                                                                                |   | (a) |   | $ | — |  |   | — | % |   | $ | 16,811 |  |   | 2.63 | % |
| 2013                                                                                |   | (a) |   | — |  |   | — |  |   | 1,927 |  |   | 2.23 | % |
| 2014                                                                                |   | (a) |   | 8,746 |  |   | 2.24 | % |   | 18,317 |  |   | 2.31 | % |
| 2015                                                                                |   | (a) |   | 9,045 |  |   | 1.94 | % |   | 10,096 |  |   | 2.12 | % |
| 2016                                                                                |   | (a) |   | 4,031 |  |   | 2.39 | % |   | 3,663 |  |   | 2.55 | % |
| 2017                                                                                |   | (a) |   | 6,510 |  |   | 2.23 | % |   | 3,451 |  |   | 2.57 | % |
| 2018                                                                                |   |   |   | 5,000 |  |   | 3.69 | % |   | 5,000 |  |   | 3.69 | % |
|       Total FHLB advances                             |   |   |   | $ | 33,332 |  |   | 2.39 | % |   | $ | 59,265 |  |   | 2.51 | % |
|                                                                                |   |   |   |   |   |   |   |   |   |   |
| (a) Includes amortizing advances requiring monthly principal and interest payments. |   |   |   |   |

----

|     |              |
|-----|--------------|
| 10. | INCOME TAXES |

|                                                                                          |
|------------------------------------------------------------------------------------------|
|                                                                                          |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                     |   | Years Ended December 31, |
|                                                                                     |   | 2012 |   | 2011 |   | 2010 |
|                                                                                     |   | (In Thousands) |
| Current tax expense                                                                      |   |   |   |   |   |   |
| Federal                                                                                  |   | $ | 726 |  |   | $ | 233 |  |   | $ | 92 |  |
| State                                                                                    |   | 230 |  |   | 97 |  |   | 15 |  |
|                                                                                     |   | 956 |  |   | 330 |  |   | 107 |  |
| Deferred tax (benefit) expense                                                           |   |   |  |   |   |  |   |   |  |
| Federal                                                                                  |   | (275 | ) |   | 1,350 |  |   | (309 | ) |
| State                                                                                    |   | (80 | ) |   | (77 | ) |   | (85 | ) |
|                                                                                     |   | (355 | ) |   | 1,273 |  |   | (394 | ) |
|                                                                                     |   |   |   |   |   |   |
| Change in valuation reserve                                                              |   | (20 | ) |   | (1,681 | ) |   | 57 |  |
|                                                                                     |   | (375 | ) |   | (408 | ) |   | (337 | ) |
|           Income tax expense (benefit) |   | $ | 581 |  |   | $ | (78 | ) |   | $ | (230 | ) |

|                                         |
|-----------------------------------------|
|                                         |  |  |  |  |  |  |  |  |  |
|                                    |   | Years Ended December 31, |
|                                    |   | 2012 |   | 2011 |   | 2010 |
| Statutory rate                          |   | 34.0 |  % |   | 34.0 |  % |   | 34.0 |  % |
| Increase (decrease) resulting from:     |   |   |  |   |   |  |   |   |  |
| State taxes, net of federal tax benefit |   | 3.2 |  % |   | 1.3 |  % |   | 3.7 |  % |
| Dividends received deduction            |   | (0.2 | )% |   | (0.5 | )% |   | (1.8 | )% |
| Change in valuation allowance           |   | (0.7 | )% |   | (164.5 | )% |   | 24.2 |  % |
| Tax-exempt interest                     |   | (16.7 | )% |   | (44.8 | )% |   | (142.1 | )% |
| Bank owned life insurance               |   | (4.2 | )% |   | (13.1 | )% |   | (60.9 | )% |
| Stock-based compensation                |   | 2.9 |  % |   | 9.0 |  % |   | 60.8 |  % |
| Expiration of contribution carryover    |   | — |  |   | 170.8 |  % |   | — |  |
| Other, net                              |   | 0.8 |  % |   | (1.9 | )% |   | (15.8 | )% |
| Effective tax rate                      |   | 19.1 |  % |   | (9.7 | )% |   | (97.9 | )% |

----

|                                                     |
|-----------------------------------------------------|
|                                                     |  |  |  |  |  |  |  |  |
|                                                |   | December 31, |
|                                                |   | 2012 |   | 2011 |
|                                                |   | (In Thousands) |
| Gross deferred tax assets                           |   |   |   |   |
| Charitable contribution carryfoward                 |   | $ | — |  |   | $ | 20 |  |
| Capital loss carryforward                           |   | 67 |  |   | 67 |  |
| Allowance for loan losses                           |   | 1,873 |  |   | 1,957 |  |
| Unrealized loss on securities available-for-sale    |   | — |  |   | 2 |  |
| Employee benefit and stock-based compensation plans |   | 838 |  |   | 906 |  |
| Nonaccrual interest                                 |   | 280 |  |   | 29 |  |
| OREO                                                |   | 157 |  |   | — |  |
| Alternative minimum tax credit                      |   | 519 |  |   | 511 |  |
| Depreciation                                        |   | 25 |  |   | — |  |
| Other                                               |   | 107 |  |   | 53 |  |
| Gross deferred tax assets                           |   | 3,866 |  |   | 3,545 |  |
| Gross deferred tax liabilities                      |   |   |  |   |   |  |
| Deferred loan costs                                 |   | (373 | ) |   | (368 | ) |
| Mortgage servicing rights                           |   | (160 | ) |   | (137 | ) |
| Depreciation                                        |   | — |  |   | (60 | ) |
| Unrealized gain on securities available-for-sale    |   | (14 | ) |   | — |  |
| Gross deferred tax liabilities                      |   | (547 | ) |   | (565 | ) |
| Net deferred tax asset                              |   | 3,319 |  |   | 2,980 |  |
| Valuation allowance                                 |   | (67 | ) |   | (87 | ) |
| Net deferred tax asset                              |   | $ | 3,252 |  |   | $ | 2,893 |  |

|                              |
|------------------------------|
|                              |  |  |  |  |  |  |  |  |  |  |  |  |
|                         |   | Years Ended December 31, |
|                         |   | 2012 |   | 2011 |   | 2010 |
|                         |   | (In Thousands) |
| Balance at beginning of year |   | $ | 87 |  |   | $ | 1,768 |  |   | $ | 1,711 |  |
| Change generated by current  |   |   |  |   |   |  |   |   |  |
| year's operations            |   | (20 | ) |   | (1,681 | ) |   | 57 |  |
| Balance at end of year       |   | $ | 67 |  |   | $ | 87 |  |   | $ | 1,768 |  |

----

|     |                              |
|-----|------------------------------|
| 11. | OFF-BALANCE-SHEET ACTIVITIES |

|                                             |
|---------------------------------------------|
|                                             |  |  |  |  |  |  |  |  |
|                                        |   | December 31, |
|                                        |   | 2012 |   | 2011 |
|                                        |   | (In Thousands) |
| Commitments to grant loans                  |   | $ | 18,081 |  |   | $ | 16,957 |  |
| Unfunded commitments for construction loans |   | 8,831 |  |   | 18,665 |  |
| Unfunded commitments under lines of credit  |   | 76,760 |  |   | 72,466 |  |
| Standby letters of credit                   |   | 1,449 |  |   | 1,139 |  |

----

|            |
|------------|
|            |  |  |  |
|       | (In Thousands) |
| 2013       | $ | 448 |  |
| 2014       | 442 |  |
| 2015       | 442 |  |
| 2016       | 438 |  |
| 2017       | 462 |  |
| Thereafter | 3,376 |  |
|       |   |  |
|       | $ | 5,608 |  |

|     |                                     |
|-----|-------------------------------------|
| 12. | OTHER COMMITMENTS AND CONTINGENCIES |

|     |                                               |
|-----|-----------------------------------------------|
| 13. | MINIMUM REGULATORY CAPITAL REQUIREMENTS  |

----

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                   |   |   |   |   |   |   |   |   |   | Minimumto be WellCapitalized Under |
|                                   |   |   |   |   |   | Minimum for Capital |   | Prompt Corrective |
|                                   |   | Actual |   | Adequacy Purposes |   | Action Provisions |
|                                   |   | Amount |   | Ratio |   | Amount |   | Ratio |   | Amount |   | Ratio |
|                                   |   | (Dollars In Thousands) |
| As of December 31, 2012:               |   |   |   |   |   |   |   |   |   |   |   |   |
| Total Capital to Risk Weighted Assets  |   |   |   |   |   |   |   |   |   |   |   |   |
| Company                                |   | $ | 94,030 |  |   | 19.3 | % |   | $ | 38,990 |  |   | 8.0 | % |   | N/A |  |   | N/A |  |
| Bank                                   |   | $ | 84,728 |  |   | 17.4 | % |   | $ | 38,932 |  |   | 8.0 | % |   | $ | 48,665 |  |   | 10.0 | % |
| Tier 1 Capital to Risk Weighted Assets |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Company                                |   | $ | 89,648 |  |   | 18.4 | % |   | $ | 19,495 |  |   | 4.0 | % |   | N/A |  |   | N/A |  |
| Bank                                   |   | $ | 80,346 |  |   | 16.5 | % |   | $ | 19,466 |  |   | 4.0 | % |   | $ | 29,199 |  |   | 6.0 | % |
| Tier 1 Capital to Average Assets       |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Company                                |   | $ | 89,648 |  |   | 15.0 | % |   | $ | 23,839 |  |   | 4.0 | % |   | N/A |  |   | N/A |  |
| Bank                                   |   | $ | 80,346 |  |   | 13.5 | % |   | $ | 23,800 |  |   | 4.0 | % |   | $ | 29,749 |  |   | 5.0 | % |
|                                   |   |   |   |   |   |   |   |   |   |   |   |   |
| As of December 31, 2011:               |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Total Capital to Risk Weighted Assets  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Company                                |   | $ | 94,009 |  |   | 19.6 | % |   | $ | 38,362 |  |   | 8.0 | % |   | N/A |  |   | N/A |  |
| Bank                                   |   | $ | 81,606 |  |   | 17.0 | % |   | $ | 38,291 |  |   | 8.0 | % |   | $ | 47,864 |  |   | 10.0 | % |
| Tier 1 Capital to Risk Weighted Assets |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Company                                |   | $ | 89,433 |  |   | 18.7 | % |   | $ | 19,181 |  |   | 4.0 | % |   | N/A |  |   | N/A |  |
| Bank                                   |   | $ | 77,030 |  |   | 16.1 | % |   | $ | 19,146 |  |   | 4.0 | % |   | $ | 28,718 |  |   | 6.0 | % |
| Tier 1 Capital to Average Assets       |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Company                                |   | $ | 89,433 |  |   | 14.8 | % |   | $ | 24,148 |  |   | 4.0 | % |   | N/A |  |   | N/A |  |
| Bank                                   |   | $ | 77,030 |  |   | 12.8 | % |   | $ | 24,096 |  |   | 4.0 | % |   | $ | 30,120 |  |   | 5.0 | % |

|                                                                     |
|---------------------------------------------------------------------|
|                                                                     |  |  |  |  |  |  |  |  |
|                                                                |   | December 31, |
|                                                                |   | 2012 |   | 2011 |
|                                                                |   | (In Thousands) |
| Total equity determined under GAAP                                  |   | $ | 89,969 |  |   | $ | 90,782 |  |
| Net unrealized (gain) loss on securities available-for-sale,        |   |   |  |   |   |  |
| net of tax                                                          |   | (26 | ) |   | 8 |  |
| Disallowed mortgage servicing rights                                |   | (37 | ) |   | (35 | ) |
| Disallowed deferred tax assets                                      |   | (258 | ) |   | (1,322 | ) |
| Tier 1 Capital                                                      |   | 89,648 |  |   | 89,433 |  |
| Allowable allowance for loan losses                                 |   | 4,364 |  |   | 4,576 |  |
| Unrealized gain on available-for-sale equity securities, net of tax |   | 18 |  |   | — |  |
| Total regulatory capital                                            |   | $ | 94,030 |  |   | $ | 94,009 |  |

----

|     |                                 |
|-----|---------------------------------|
| 14. | COMMON STOCK REPURCHASE PROGRAM |

|                |
|----------------|
|                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| RepurchasePlan |   | Approval Date |   | Completion Date |   | No. ofSharesApproved |   | No. ofSharesPurchased |   | AveragePrice perShare |   | Total Cost ofthe Plan |
| Initial Plan   |   | August 16, 2007 |   | March 3, 2008 |   | 371,968 |  |   | 371,968 |  |   | $ | 13.21 |  |   | $4.9 million |
| Second Plan    |   | March 4, 2008 |   | August 8, 2008 |   | 353,370 |  |   | 353,370 |  |   | $ | 13.26 |  |   | $4.7 million |
| Third Plan     |   | August 8, 2008 |   | November 25, 2009 |   | 335,000 |  |   | 335,000 |  |   | $ | 12.98 |  |   | $4.3 million |
| Fourth Plan    |   | February 26, 2010 |   | November 23, 2010 |   | 318,952 |  |   | 318,952 |  |   | $ | 11.75 |  |   | $3.7 million |
| Fifth Plan     |   | November 19, 2010 |   | November 3, 2011 |   | 303,004 |  |   | 303,004 |  |   | $ | 13.84 |  |   | $4.2 million |
| Sixth Plan     |   | September 30, 2011 |   | October 11, 2012 |   | 287,000 |  |   | 287,000 |  |   | $ | 14.26 |  |   | $4.1 million |
| Seventh Plan   |   | June 1, 2012 |   | — |   | 272,000 |  |   | 22,654 |  |   | $ | 14.26 |  |   | $323,000 |

|     |                        |
|-----|------------------------|
| 15. | EMPLOYEE BENEFIT PLANS |

|           |                                     |
|-----------|-------------------------------------|
| 16.  | EMPLOYEE STOCK OWNERSHIP PLAN  |

----

|                |
|----------------|
|                |  |  |  |
| Years Ending   |
| December 31,   |
| (In Thousands) |
| 2013           | $ | 211 |  |
| 2014           | 229 |  |
| 2015           | 247 |  |
| 2016           | 268 |  |
| 2017           | 290 |  |
| Thereafter     | 3,368 |  |
|           |   |  |
|           | $ | 4,613 |  |

|                                                                                                                               |
|-------------------------------------------------------------------------------------------------------------------------------|
|                                                                                                                               |  |  |  |  |  |  |  |  |  |
|                                                                                                                          |   | December 31, |
|                                                                                                                          |   | 2012 |   | 2011 |   | 2010 |
|                    Allocated   |   | 181,107 |  |   | 163,216 |  |   | 144,241 |  |
|                    Unallocated |   | 386,847 |  |   | 416,607 |  |   | 446,364 |  |
|                                                                                                                          |   | 567,954 |  |   | 579,823 |  |   | 590,605 |  |

|     |                                   |
|-----|-----------------------------------|
| 17. | EQUITY INCENTIVE PLAN   |

----

|                         |
|-------------------------|
|                         |  |  |  |  |  |
|                    | Year Ended |   | Year Ended |
|                    | December 31, |   | December 31, |
|                    | 2012 |   | 2011 |
| Expected dividend yield | 0.86 | % |   | 0.86 | % |
| Expected term           | 6.5 years |  |   | 6.5 years |  |
| Expected volatility     | 23.27 | % |   | 25.37 | % |
| Risk-free interest rate | 1.40 | % |   | 2.92 | % |

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                             |   | Shares |   | Weighted AverageExercise Price |   | Weighted AverageRemainingContractual Term(in years) |   | AggregateIntrinsicValue (000's) |
| Outstanding at December 31, 2010 |   | 591,334 |  |   | $ | 14.21 |  |   | 6.65 |  |   |   |
| Outstanding at December 31, 2011 |   | 556,198 |  |   | 14.23 |  |   | 5.74 |  |   | 25 |  |
| Granted                          |   | 63,000 |  |   | 14.20 |  |   | 9.05 |  |   |   |  |
| Exercised                        |   | (13,800 | ) |   | 14.12 |  |   | 5.17 |  |   |   |  |
| Forfeited or expired             |   | (10,200 | ) |   | 13.89 |  |   | 7.12 |  |   |   |  |
| Outstanding at December 31, 2012 |   | 595,198 |  |   | $ | 14.24 |  |   | 5.15 |  |   | $ | 983 |  |
| Exercisable at December 31, 2012 |   | 519,998 |  |   | $ | 14.26 |  |   | 4.62 |  |   | $ | 846 |  |
| Exercisable at December 31, 2011 |   | 426,157 |  |   | $ | 14.26 |  |   | 5.61 |  |   | $ | 10 |  |
| Exercisable at December 31, 2010 |   | 347,198 |  |   | $ | 14.25 |  |   | 6.60 |  |   | $ | 12 |  |

----

|                                  |
|----------------------------------|
|                                  |  |  |  |  |  |  |  |
|                             |   |   |   | Weighted AverageGrant-Date |
| Nonvested Shares                 |   | Shares |   | Fair Value |
| Outstanding at December 31, 2011 |   | 55,346 |  |   | $ | 14.28 |  |
| Granted                          |   | — |  |   | — |  |
| Vested                           |   | 53,746 |  |   | 14.29 |  |
| Forfeited or expired             |   | — |  |   | — |  |
| Outstanding at December 31, 2012 |   | 1,600 |  |   | $ | 14.08 |  |

|                 |                            |
|-----------------|----------------------------|
| 19.   | RELATED PARTY TRANSACTIONS |

|                                |
|--------------------------------|
|                                |  |  |  |  |  |  |  |  |
|                           |   | Years EndedDecember 31, |
|                           |   | 2012 |   | 2011 |
|                           |   | (In Thousands) |
| Balance at beginning of year   |   | $ | 1,447 |  |   | $ | 1,584 |  |
| Additions                      |   | 101 |  |   | 119 |  |
| Repayments                     |   | (323 | ) |   | (226 | ) |
| Change in related party status |   | (15 | ) |   | (30 | ) |
| Balance at end of year         |   | $ | 1,210 |  |   | $ | 1,447 |  |

----

----

----

|                                     |
|-------------------------------------|
|                                     |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                |   | Fair Value Measurements Using |
|                                |   | December 31, 2012 |   | Readily Available Market Prices (Level 1) |   | Observable Market Data (Level 2) |   | Determined Fair Value (Level 3) |
| Assets (market approach)            |   | (Dollars In Thousands) |
| Securities available-for-sale       |   |   |   |   |   |   |   |   |
| Equity securities by industry type: |   |   |   |   |   |   |   |   |
| Financial                           |   | $ | 621 |  |   | $ | 621 |  |   | $ | — |  |   | $ | — |  |
| Total equity securities             |   | $ | 621 |  |   | $ | 621 |  |   | $ | — |  |   | $ | — |  |
|                                |   |   |   |   |   |   |   |   |
|                                |   | Fair Value Measurements Using |
|                                |   | December 31, 2011 |   | Readily Available Market Prices (Level 1) |   | Observable Market Data (Level 2) |   | Determined Fair Value (Level 3) |
| Assets (market approach)            |   | (Dollars In Thousands) |
| Securities available-for-sale       |   |   |  |   |   |  |   |   |  |   |   |  |
| Equity securities by industry type: |   |   |  |   |   |  |   |   |  |   |   |  |
| Financial                           |   | $ | 613 |  |   | $ | 613 |  |   | $ | — |  |   | $ | — |  |
| Total equity securities             |   | $ | 613 |  |   | $ | 613 |  |   | $ | — |  |   | $ | — |  |

----

|                                                |
|------------------------------------------------|
|                                                |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                           |   | Fair Value Measurements Using |
|                                           |   | December 31, 2012 |   | Readily Available Market Prices (Level 1) |   | Observable Market Data (Level 2) |   | Determined Fair Value (Level 3) |
|                                           |   | (Dollars In Thousands) |
| Assets                                         |   |   |   |   |   |   |   |   |
| Impaired loans with a valuation allowance, net |   | $ | 1,556 |  |   | $ | — |  |   | $ | 1,556 |  |   | $ | — |  |
| OREO                                           |   | 572 |  |   | — |  |   | 572 |  |   | — |  |
| Mortgage servicing rights                      |   | 147 |  |   | — |  |   | 147 |  |   | — |  |
|                                           |   |   |   |   |   |   |   |   |
|                                           |   | Fair Value Measurements Using |
|                                           |   | December 31, 2011 |   | Readily Available Market Prices (Level 1) |   | Observable Market Data (Level 2) |   | Determined Fair Value (Level 3) |
|                                           |   | (Dollars In Thousands) |
| Assets                                         |   |   |  |   |   |  |   |   |  |   |   |  |
| Impaired loans with a valuation allowance, net |   | $ | 2,296 |  |   | $ | — |  |   | $ | 2,296 |  |   | $ | — |  |
| OREO                                           |   | 913 |  |   | — |  |   | 913 |  |   | — |  |
| Loans held for sale                            |   | 1,635 |  |   | — |  |   | 1,635 |  |   | — |  |
| Mortgage servicing rights                      |   | 360 |  |   | — |  |   | 360 |  |   | — |  |

----

|                                                                                                            |
|------------------------------------------------------------------------------------------------------------|
|                                                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                                                       |   |   | Fair Value Measurements Using |
|                                                                                                       | Carrying Amount at December 31, 2012 |   | Readily Available Market Prices (Level 1) |   | Observable Market Data (Level 2) |   | Determined Fair Value (Level 3) |
|                                                                                                       | (Dollars In Thousands) |
|                                                                                                       |   |   |   |   |   |   |   |
| Financial assets:                                                                                          |   |   |   |   |   |   |   |
|           Cash and cash equivalents                      | $ | 39,608 |  |   | $ | 39,608 |  |   | $ | — |  |   | $ | — |  |
|           Securities available-for-sale                  | 621 |  |   | 621 |  |   | — |  |   | — |  |
|           Securities held-to-maturity                    | 59,568 |  |   | — |  |   | 67,108 |  |   | — |  |
|           FHLB stock                                     | 4,277 |  |   | — |  |   | 4,277 |  |   | — |  |
|                                                                                                       |   |   |   |   |   |   |   |
|           Residential real estate                        | 120,265 |  |   | — |  |   | — |  |   | 116,129 |  |
|           Residential construction                       | 4,334 |  |   | — |  |   | — |  |   | 4,310 |  |
|           Commercial real estate                         | 189,472 |  |   | — |  |   | — |  |   | 187,653 |  |
|           Commercial construction                        | 35,781 |  |   | — |  |   | — |  |   | 36,210 |  |
|           Commercial                                     | 84,583 |  |   | — |  |   | — |  |   | 84,769 |  |
|           Consumer                                       | 2,492 |  |   | — |  |   | — |  |   | 2,693 |  |
|           Home equity                                    | 31,731 |  |   | — |  |   | — |  |   | 31,956 |  |
|                Total loans      | 468,658 |  |   | — |  |   | — |  |   | 463,720 |  |
|                                                                                                       |   |   |   |   |   |   |   |
|           Accrued interest receivable                    | 1,567 |  |   | — |  |   | 1,567 |  |   | — |  |
|           Mortgage servicing rights                      | 368 |  |   | — |  |   | 444 |  |   | — |  |
|                                                                                                       |   |   |   |   |   |   |   |
| Financial liabilities:                                                                                     |   |   |   |   |   |   |   |
|          Deposits                                             | $ | 466,177 |  |   | $ | — |  |   | $ | 468,966 |  |   | $ | — |  |
|          Securities sold under under agreements to repurchase | 9,763 |  |   | — |  |   | 9,763 |  |   | — |  |
|          FHLB long term advances                              | 33,332 |  |   | — |  |   | 35,105 |  |   | — |  |
|          Accrued interest payable                             | 60 |  |   | — |  |   | 60 |  |   | — |  |

----

|                                                                              |
|------------------------------------------------------------------------------|
|                                                                              |  |  |  |  |  |  |  |
|                                                                         | December 31, 2011 |
|                                                                         | Carrying Amount |   | Fair Value |
|                                                                         | (Dollars in Thousands) |
| Financial assets:                                                            |   |   |   |
|      Cash and cash equivalents                      | $ | 61,122 |  |   | $ | 61,122 |  |
|      Securities available-for-sale                  | 613 |  |   | 613 |  |
|      Securities held-to-maturity                    | 73,852 |  |   | 80,607 |  |
|      FHLB stock                                     | 4,489 |  |   | 4,489 |  |
|      Total loans                                    | 447,126 |  |   | 448,781 |  |
|      Loans held for sale                            | 1,635 |  |   | 1,635 |  |
|      Accrued interest receivable                    | 1,527 |  |   | 1,527 |  |
|      Mortgage servicing rights                      | 344 |  |   | 360 |  |
|                                                                         |   |   |   |
| Financial liabilities:                                                       |   |   |   |
|      Deposits                                       | $ | 453,377 |  |   | $ | 454,776 |  |
|      Securities sold under agreements to repurchase | 12,340 |  |   | 12,340 |  |
|      FHLB long term advances                        | 59,625 |  |   | 61,540 |  |
|      Accrued interest payable                       | 132 |  |   | 132 |  |

|                                        |
|----------------------------------------|
|                                        |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
|                                   |   | 2012 |   | 2011 |
|                                   |   | FirstQuarter |   | SecondQuarter |   | ThirdQuarter |   | FourthQuarter |   | FirstQuarter |   | SecondQuarter |   | ThirdQuarter |   | FourthQuarter |
|                                   |   | (In Thousands) |
| Interest and dividend income           |   | $ | 6,118 |  |   | $ | 6,102 |  |   | $ | 6,100 |  |   | $ | 6,077 |  |   | $ | 6,188 |  |   | $ | 6,281 |  |   | $ | 6,232 |  |   | $ | 6,149 |  |
| Interest expense                       |   | 1,516 |  |   | 1,484 |  |   | 1,373 |  |   | 1,254 |  |   | 1,822 |  |   | 1,792 |  |   | 1,714 |  |   | 1,574 |  |
| Net interest and dividend income       |   | 4,602 |  |   | 4,618 |  |   | 4,727 |  |   | 4,823 |  |   | 4,366 |  |   | 4,489 |  |   | 4,518 |  |   | 4,575 |  |
| Provision for loan losses              |   | 7 |  |   | 64 |  |   | 169 |  |   | 202 |  |   | 233 |  |   | 119 |  |   | 223 |  |   | 267 |  |
| Net gain on sales of securities        |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| available-for-sale                     |   | — |  |   | — |  |   | — |  |   | — |  |   | 12 |  |   | — |  |   | — |  |   | — |  |
| Other than temporary impairment charge |   | — |  |   | — |  |   | — |  |   | (37 | ) |   | — |  |   | — |  |   | — |  |   | — |  |
| Fees and other non-interest income     |   | 681 |  |   | 777 |  |   | 620 |  |   | 982 |  |   | 649 |  |   | 591 |  |   | 697 |  |   | 701 |  |
| Non-interest expenses                  |   | 4,830 |  |   | 4,822 |  |   | 4,362 |  |   | 4,291 |  |   | 4,746 |  |   | 4,673 |  |   | 4,661 |  |   | 4,654 |  |
| Income tax expense (benefit)           |   | 49 |  |   | 57 |  |   | 193 |  |   | 282 |  |   | 5 |  |   | (18 | ) |   | (40 | ) |   | (25 | ) |
| Net income                             |   | $ | 397 |  |   | $ | 452 |  |   | $ | 623 |  |   | $ | 993 |  |   | $ | 43 |  |   | $ | 306 |  |   | $ | 371 |  |   | $ | 380 |  |
| Earnings per share:                    |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |   |   |  |
| Basic                                  |   | $ | 0.08 |  |   | $ | 0.09 |  |   | $ | 0.12 |  |   | $ | 0.20 |  |   | $ | 0.01 |  |   | $ | 0.06 |  |   | $ | 0.07 |  |   | $ | 0.07 |  |
| Diluted                                |   | $ | 0.08 |  |   | $ | 0.09 |  |   | $ | 0.12 |  |   | $ | 0.19 |  |   | $ | 0.01 |  |   | $ | 0.06 |  |   | $ | 0.07 |  |   | $ | 0.07 |  |

----

|                                                            |
|------------------------------------------------------------|
|                                                            |  |  |  |  |  |  |  |  |
|                                                       |   | December 31, |
| BALANCE SHEETS                                             |   | 2012 |   | 2011 |
|                                                       |   | (In Thousands) |
| Assets                                                     |   |   |   |   |
| Cash and cash equivalents                                  |   | $ | 3,182 |  |   | $ | 5,073 |  |
| Investment in common stock of Chicopee Savings Bank        |   | 80,667 |  |   | 78,389 |  |
| Investment in common stock of Chicopee Funding Corporation |   | 4,631 |  |   | 6,272 |  |
| Other assets                                               |   | 1,489 |  |   | 1,098 |  |
| Total assets                                               |   | $ | 89,969 |  |   | $ | 90,832 |  |
| Liabilities and Stockholders' Equity                       |   |   |  |   |   |  |
| Total liabilities                                          |   | $ | — |  |   | $ | 50 |  |
| Stockholders' equity                                       |   | 89,969 |  |   | 90,782 |  |
| Total liabilities and stockholders' equity                 |   | $ | 89,969 |  |   | $ | 90,832 |  |

|                                                                            |
|----------------------------------------------------------------------------|
|                                                                            |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                       |   | Years Ended December 31, |
| STATEMENTS OF INCOME                                                       |   | 2012 |   | 2011 |   | 2010 |
|                                                                       |   | (In Thousands) |
| Interest income                                                            |   | $ | 2,043 |  |   | $ | 33 |  |   | $ | 2,539 |  |
| Dividend income from subsidiaries                                          |   | 1,565 |  |   | — |  |   | 8,000 |  |
| Operating expenses                                                         |   | 704 |  |   | 637 |  |   | 644 |  |
| Income (loss) before income taxes and equity in undistributed              |   |   |  |   |   |  |
| net income of subsidiaries                                                 |   | 2,904 |  |   | (604 | ) |   | 9,895 |  |
| Applicable income tax (benefit) expense                                    |   | (44 | ) |   | 28 |  |   | 81 |  |
| Income (loss) before equity in undistributed net income of subsidiaries    |   | 2,948 |  |   | (632 | ) |   | 9,814 |  |
| Equity in undistributed net income (loss) of Chicopee Savings Bank         |   | 1,157 |  |   | 1,317 |  |   | (7,790 | ) |
| Equity in undistributed net income (loss) of Chicopee Funding =Corporation |   | (1,640 | ) |   | 415 |  |   | (1,559 | ) |
| Net income                                                                 |   | $ | 2,465 |  |   | $ | 1,100 |  |   | $ | 465 |  |

----

|                                                                           |
|---------------------------------------------------------------------------|
|                                                                           |  |  |  |  |  |  |  |  |  |  |  |  |
|                                                                      |   | Years Ended December 31, |
| STATEMENTS OF CASH FLOWS                                                  |   | 2012 |   | 2011 |   | 2010 |
|                                                                      |   | (In Thousands) |
| Cash flows from operating activities:                                     |   |   |   |   |   |   |
| Net income                                                                |   | $ | 2,465 |  |   | $ | 1,100 |  |   | $ | 465 |  |
| Adjustments to reconcile net income to net cash                           |   |   |  |   |   |  |   |   |  |
| provided by operating activities:                                         |   |   |  |   |   |  |   |   |  |
| Equity in undistributed net (income) loss of Chicopee Savings Bank        |   | (1,157 | ) |   | (1,317 | ) |   | 7,790 |  |
| Equity in undistributed net (income) loss of Chicopee Funding Corporation |   | 1,640 |  |   | (415 | ) |   | 1,559 |  |
| (Increase) decrease in other assets                                       |   | (391 | ) |   | (79 | ) |   | 463 |  |
| Increase (decrease) in other liabilities                                  |   | (50 | ) |   | 38 |  |   | — |  |
| Change in unearned compensation                                           |   | 1,091 |  |   | 1,727 |  |   | 1,626 |  |
| Net cash provided by operating activities                                 |   | 3,598 |  |   | 1,054 |  |   | 11,903 |  |
| Cash flows from investing activities:                                     |   |   |  |   |   |  |   |   |  |
| Investment in Chicopee Savings Bank                                       |   | (1,091 | ) |   | (1,727 | ) |   | (1,626 | ) |
| Net cash used in investing activities                                     |   | (1,091 | ) |   | (1,727 | ) |   | (1,626 | ) |
| Cash flows from financing activities                                      |   |   |  |   |   |  |   |   |  |
| Treasury stock purchased                                                  |   | (4,377 | ) |   | (3,895 | ) |   | (4,344 | ) |
| Adjustment to treasury shares                                             |   | 32 |  |   | — |  |   | — |  |
| Exercise of stock options                                                 |   | (53 | ) |   | (6 | ) |   | — |  |
| Net cash used in financing activities                                     |   | (4,398 | ) |   | (3,901 | ) |   | (4,344 | ) |
| Net (decrease) increase in cash and cash equivalents                      |   | (1,891 | ) |   | (4,574 | ) |   | 5,933 |  |
| Cash and cash equivalents at beginning of year                            |   | 5,073 |  |   | 9,647 |  |   | 3,714 |  |
| Cash and cash equivalents at end of year                                  |   | $ | 3,182 |  |   | $ | 5,073 |  |   | $ | 9,647 |  |

|         |
|---------|
|         |  |
| ● | 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). |