CBT Passes $100 Million in Assets; Strong Growth in Loans

Business Wire, July 25, 2006

THE CONNECTICUT BANK AND TRUST COMPANY
                            BALANCE SHEETS
                             June 30, 2006
                        (Dollars in Thousands)

                                ASSETS
                                          June   December      June
                                           30,      31,         30,
                                          2006     2005        2005
                                      (Unaudited)          (Unaudited)
                                      ----------- -------- -----------
Cash and due from banks                   $4,596   $1,406      $2,296
Interest bearing asset                        25        -           -
Federal funds sold                            50   11,027      13,939
                                      ----------- -------- -----------
          Cash and cash equivalents        4,671   12,433      16,235

Securities available for sale             21,083   23,908      29,502
Federal Reserve Bank stock, at cost          770      766         529
Federal Home Loan Bank stock, at cost        533      125           -

Loans                                     83,069   57,140      37,919
Less: allowance for loan losses           (1,136)    (876)       (506)
                                      ----------- -------- -----------
Loans, net                                81,933   56,264      37,413

Premises and equipment, net                2,036    2,079       1,796
Accrued interest receivable                  497      390         322
Other assets                                 939      910         335
                                      ----------- -------- -----------
Total Assets                            $112,462  $96,875     $86,132
                                      =========== ======== ===========

 LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits                                 $75,877  $70,740     $73,113
Short term borrowings                     10,591      442         286
Long term debt                             2,450        -           -
Other liabilities                            525      648         573
                                      ----------- -------- -----------
          Total liabilities               89,443   71,830      73,972
                                      ----------- -------- -----------

Stockholders' equity;
  Common stock, $1.00 par value;
   10,000,000 shares authorized;
   3,567,450 shares issued and
   outstanding at June 30, 2006 and
   December 31, 2005, 1,913,250 as
   of June 30, 2005                        3,567    3,567       1,914
  Common stock warrants                      853      853         853
  Additional paid-in capital              29,553   29,536      16,478
  Restricted stock unearned
   compensation                             (523)    (618)       (666)
  Retained deficit                        (9,540)  (7,756)     (6,273)
  Accumulated other comprehensive loss      (891)    (537)       (146)
                                      ----------- -------- -----------
          Total stockholders' equity      23,019   25,045      12,160
                                      ----------- -------- -----------
Total Liabilities and Stockholders'
 Equity                                 $112,462  $96,875     $86,132
                                      =========== ======== ===========


                THE CONNECTICUT BANK AND TRUST COMPANY
                 Consolidated Statements of Operations

                                 Three Months Ended   Six Months Ended
                                      June 30,             June 30,
                                ------------------   -----------------
                                    2006     2005       2006     2005
                                --------- --------   -------- --------
(Dollars in thousands except        (Unaudited)          (Unaudited)
   share data)
  Interest and dividend income:
    Interest and fees on loans    $1,386     $539     $2,534     $928
    Debt securities                  239      317        499      676
    Dividends                         11        8         29       16
    Federal funds sold                 1       63         16      110
                                --------- --------   -------- --------
      Total interest and
       dividend income             1,637      927      3,078    1,730
                                --------- --------   -------- --------
  Interest expense:
    Deposits                         530      377        948      710
    Borrowed funds                   142        1        227        2
                                --------- --------   -------- --------
      Total interest expense         672      378      1,175      712
                                --------- --------   -------- --------
  Net interest income                965      549      1,903    1,018
    Provision for loan losses        178      147        260      267
                                --------- --------   -------- --------
      Net interest income,
       after provision for
       loan losses                   787      402      1,643      751
                                --------- --------   -------- --------
  Non-interest income:
    Service charges and fees          25       19         43       30
    Net losses from sales of
     available-for-sale
     securities                        -       (3)         -       (3)
                                --------- --------   -------- --------
      Total non-interest income       25       16         43       27
                                --------- --------   -------- --------
  Non-interest expenses:
    Salaries and benefits            928      657      1,834    1,295
    Occupancy and equipment          287      216        563      410
    Data processing                   40       37         82       73
    Marketing                        158      283        430      503
    Professional services            146      191        253      305
    Other general and
     administrative                  161      155        308      277
                                --------- --------   -------- --------
     Total non-interest expenses   1,720    1,539      3,470    2,863
                                --------- --------   -------- --------
  Net loss                         $(908) $(1,121)   $(1,784) $(2,085)
                                ========= ========   ======== ========
  Net loss per share:
  Basic                           $(0.25)  $(0.59)    $(0.50)  $(1.10)
  Diluted                         $(0.25)  $(0.59)    $(0.50)  $(1.10)