The Bank increased the amount of its loan portfolio, securities portfolio and federal funds sold between year-end 2004 and the end of the third quarter of fiscal 2005. This increase in earning assets is the result of the investment of additional capital raised in the Bank’s private placement of common stock, coupled with an increase in deposit account balances. The Bank had $42.5 million in total assets at the quarter’s end, an increase of $18.1 million, or 74.3%, from $24.4 million at December 31, 2004, and $40.3 million in earning assets at September 30, 2005, compared to $22.2 million at December 31, 2004. Earning assets at September 30, 2005 consisted of $20.8 million in net loans, $12.2 million in investment securities, and $7.3 million in federal funds sold. At September 30, 2005, we had $8.6 million in commercial mortgage loans and $7.5 million in commercial business loans, which are our highest yielding categories of loans. These balances reflect increases of $3.3 million and $4.5 million respectively from December 31, 2004. Loans secured by residential properties totaled $0.8 million at September 30, 2005, decreasing $0.4 million from December 31, 2004. Home equity loans decreased by $0.1 million to $2.5 million for the same period. At September 30, 2005, we had $393,000 in consumer loans, a decrease of $68,000 from December 31, 2004.

At September 30, 2005, the Bank had $33.8 million in deposits, an increase of $12.4 million or 57.7% from $21.4 million at December 31, 2004. Our deposits at September 30, 2005 consisted of $2.9 million in savings accounts, $3.3 million in NOW accounts, $9.9 million in money market accounts, $5.4 million in non-interest demand accounts, and $12.3 million in time deposits, compared with $2.1 million, $2.2 million, $5.0 million, $4.5 million and $7.6 million, respectively, at December 31, 2004. The largest growth was in money market accounts, which increased $5.0 million or 100.5% and time deposits, which increased $4.7 million or 62.9%. The growth in money market accounts is due primarily to the introduction of a new high yielding Platinum Plus Money Market account, originally introduced during the second quarter of 2005 and the increase in time deposits was the result of a five-month CD promotion that commenced in the third quarter of 2005.

At September 30, 2005, we had $8.5 million in shareholders' equity, an increase of $5.9 million from December 31, 2004. This increase in shareholder’s equity was the result of the sale of 1,400,000 shares of common stock completed on March 1, 2005, which netted $6.75 million of additional capital. This was partially offset by the operating loss of $727,000 for the nine months ended September 30, 2005 and the $72,000 increase in the unrealized loss on securities available for sale. The Bank’s Tier I leverage capital ratio was 22.8% at September 30, 2005, which qualifies the Bank as a well-capitalized institution.

Commenting on the third quarter results, Ronald J. Gentile, the Bank’s President and Chief Executive Officer, remarked, “The Bank has grown vigorously during the nine completed months of fiscal 2005. Commercial real estate and business loans increased by 47% and our total deposits grew by 25% during the third quarter of 2005. At September 30, our commercial loan pipeline totaled $6.5 million, or 31% of net loans at quarter end. This growth is consistent with the revised strategic plan developed by our Board of Directors and approved by the Office of the Comptroller of the Currency. While we continue to experience a net loss, asset quality remains very high, with non-performing loans (90 days or more past due and non-accrual loans) representing 0.62% of the net loan portfolio. We are well-positioned to continue the implementation of our plan through the prudent growth of our commercial loan portfolio and deposit base.”

The Bank, founded in 2002, is headquartered in Middletown, New York and is the first community bank chartered in Orange County, New York in over fifty years. It offers to its individual and business customers a variety of banking services and products, including free checking and expanded banking hours. The Office of the Comptroller of the Currency charters the Bank and the Federal Deposit Insurance Corporation insures its deposits.

NOTE: This press release may contain certain statements which are not historical facts or which concern the Company's future operations or economic performance and which are to be considered forward-looking statements. Any such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The Bank cautions that all forward-looking statements involve risk and uncertainties, and that actual results may differ from those indicated in the forward-looking statements as a result of various factors, such as changing economic and competitive conditions and other risk and uncertainties. In addition, any statements in this news release regarding historical stock price performance are not indicative of or guarantees of future price performance.