Exhibit 99.1

For Immediate Release

Date: January 26, 2011

Contacts:		Patrick J. Sullivan		Paul H. Bruce
		President		Chief Financial Officer
Phone:		413-445-3409		413-445-3513
Email:		pat.sullivan@legacybanks.com		paul.bruce@legacybanks.com

Legacy Bancorp, Inc. Reports Results for Quarter Ended December 31, 2010

PITTSFIELD, MASSACHUSETTS (January 26, 2011): Legacy Bancorp, Inc. (the “Company” or “Legacy”) (NASDAQ: LEGC), the holding company for Legacy Banks (the “Bank”), today reported a net loss of $4.5 million or $0.57 per share, for the quarter ended December 31, 2010, compared to a net loss of $3.8 million, or $0.48 per share, in the fourth quarter of 2009. For all of 2010 the Company incurred a net loss of $7.9 million, or $0.99 per share, as compared to a net loss of $7.8 million, or $0.98 per share in 2009. The year to date change in net loss includes a decrease in the loss on the sale of securities and charges on investments deemed to be other-than-temporarily impaired (OTTI), offset by an increase in the provision for loan losses and operating expenses and a decrease in net interest margin. The 2010 fourth quarter and full year loss also include a charge of $1.5 million on the prepayment of approximately $34.7 million of advances from the Federal Home Loan Bank (FHLB). The total shares outstanding resulted in a book value per share and tangible book value per share of $12.92 and $11.17, respectively, at December 31, 2010.

J. Williar Dunlaevy, Chief Executive Officer, commented, “The fourth quarter concluded a pivotal and transitional year for Legacy Bancorp and sets the stage for improved performance and dynamic change for our company, customers, employees and community. In April, following a national search, Pat Sullivan joined us as President of the company and President & CEO of Legacy Banks. On the operating side, Pat quickly moved to put in place a profit improvement plan. He also quickly assumed the reins as chief lending officer and aggressively worked to resolve problem assets and remove risk from the balance sheet, which unfortunately overshadowed the profitability improvements.

“On the more strategic front, we worked with the board on how best to create long term shareholder value. The conclusion was the decision announced in December to join forces with Berkshire Hills Bancorp, our long term in-market competitor, to create a dynamic regional community bank building on the financial strength and talent of each company”

Patrick J. Sullivan, President, added, “My first year has been primarily focused on improving all measures of asset quality as well as addressing cost management throughout the bank. 2010 is reflective of all those actions. Our recently announced merger with Berkshire Hills Bancorp creates further opportunities for building a strong Western Mass based financial institution.”

The Company’s total assets decreased by $29.4 million, or 3.1%, from $946.3 million at December 31, 2009 to $916.9 million at December 31, 2010. Within the overall asset balances, the gross loan portfolio, excluding loans held for sale, decreased by $47.5 million, or 7.2%, in 2010. Residential mortgages have decreased $8.9 million, or 3.1%, as the majority of the residential mortgage activity was in the 30 year fixed rate category, a product which the Bank currently sells in the secondary market with servicing retained, while Home Equity Lines of Credit increased by $4.7 million, or 6.8%. Commercial real estate loans decreased $38.9 million, or 14.7%, primarily due to loan payoffs and specific loan charge-offs during the year. Additionally, in the fourth quarter of 2010 management decided to reduce the Banks portfolio of out of market commercial real estate loans by executing the sale of approximately $16.2 million of these loans. The available-for-sale investment portfolio increased by $18.3 million, or 10.9%, while cash and cash equivalents decreased by $13.1 million, or 32.5%, at December 31, 2010 as compared to the prior year end.

Deposits have increased by $33.9 million, or 5.2%, to $685.2 million from a balance of $651.4 million at December 31, 2009. The Company had increases in most deposit categories, with the largest increase in relationship savings balances which increased $16.8 million, or 13.4%. Money market accounts and certificates of deposit also experienced good growth in 2010, increasing $5.5 million, or 8.8%, and $8.4 million, or 2.9%, respectively. As part of a strategy to improve net interest margin (NIM) going forward, the Bank prepaid approximately $34.7 million of FHLB advances during the fourth quarter of 2010. This prepayment along with other maturities throughout the year reduced the balance of FHLB advances by $55.0 million, or 34.3%, at December 31, 2010 as compared to the end of 2009.

Overall stockholders’ equity decreased by $9.8 million, or 8.1%, in 2010 as equity was impacted by the net loss of $7.9 million, the declaration of a dividend of $0.05 per share during each quarter of 2010, a decrease in the unrealized gain on available-for-sale investment securities and the purchase of 104,000 shares of stock at an average price of $8.57 per share as part of the Stock Repurchase Program announced in March 2009. These decreases to equity were partially offset by the amortization of unearned compensation.

Total nonperforming assets (NPAs) were $15.0 million at December 31, 2010, a decrease of $5.8 million as compared to the end of 2009. This decrease was primarily the result of the Bank charging off $12.6 million of loan balances, $4.3 million of which had been reserved for prior to 2010. These charge-offs also reduced the overall ratio of nonperforming assets to total assets to 1.63% at December 31, 2010 as compared to 2.20% at December 31, 2009. Total NPAs include $2.2 million of other real estate owned (OREO) as of December 31, 2010 as compared to $1.2 million at the end of 2009.

The provision for loan losses was $2.1 million in the fourth quarter of 2010, with a portion attributable to the out of market commercial real estate loans sold during the quarter. The quarterly provision represents a decrease of $431,000 as compared to the same period in 2009. Through December 31, 2010 the provision expense was $10.5 million, which represents an increase of $5.6 million as compared to 2009. This increase reflected both the difference in the amount of and mix of the net change in loan balances in each period as well as higher specific reserves established against certain loans in 2010. Additionally, as part of a continuous review and analysis of current market and economic conditions by management, the Company adjusted the reserve ratio applied to certain loan categories in 2010. The loan charge-offs also resulted in

the reduction in the ratio of the allowance for loan losses to total loans to 1.47% at December 31, 2010, as compared to 1.67% at December 31, 2009.

The Company’s net interest income decreased by $355,000, or 5.3%, in the fourth quarter of 2010 as compared to the same period in 2009 and by $1.1 million, or 3.9%, for all of 2010 as compared to 2009. The NIM was 2.90% for the three months ended December 31, 2010, a decrease of 13 basis points from the third quarter of 2010, and a decrease of 15 basis points from the fourth quarter of 2009. For all of 2010, the NIM was 3.05% as compared to 3.13% in 2009 as decreases to the cost of funds resulting from the Bank’s diligent efforts in lowering deposit costs were offset by a decrease in asset yields.

Non-interest income for the fourth quarter decreased $157,000 from the same period of 2009. Year to date, non-interest income totaled $3.2 million as compared to a net charge of $4.6 million for 2009. The primary cause of the improvement year to date was the decrease in the amount of writedowns taken on investments deemed to be OTTI as well as an increase in the net gain on the sale of investment securities. The Company recorded $3.9 million of OTTI credit losses on certain limited partnership and equity investments during 2010 as compared to a charge of $7.2 million on certain bonds, equities and limited partnership investments in 2009. Similarly, the Company recorded a net gain of $2.0 million on the sale of investments in 2010 as compared to a net loss of $3.0 million in 2009. The Company also incurred a charge of $1.5 million in the forth quarter of 2010 related to the prepayment of certain FHLB advances. Portfolio management fees increased $961,000, or 95.4%, as a result of Legacy’s acquisition of the Renaissance Investment Group, LLC in the second quarter of 2010. Legacy also had increases in customer fees and insurance and other fees, partially offset by a decrease on the gain on sale of mortgages.

Operating expenses increased by $1.3 million, or 18.7%, for the fourth quarter of 2010 as compared to the same period of 2009, and by $2.2 million, or 7.7%, year to date. Salaries and benefits were impacted by severance and other management restructuring expenses of approximately $494,000 in the twelve month period ending December 31, 2010. Full year increases in data processing expenses were partially offset by decreases in FDIC deposit insurance, occupancy and advertising expense. The increase in professional fees in 2010 is primarily the result of the Company incurring $473,000 related to the merger transaction with Berkshire Hills Bancorp, Inc. announced in December 2010. The increase in other general and administration expenses was primarily due to higher expenses related to OREO and other commercial real estate workout expenses of $528,000 and $972,000 for the three and twelve months ending December 31, 2010, respectively, as compared to $142,000 and $163,000 in the same periods of 2009. Other general and administrative expenses also include $40,000 and $107,000 for the three and twelve months ending December 31, 2010, respectively, in amortization of intangibles acquired as part of the Company’s acquisition of substantially all of the assets of Renaissance. The Company’s core efficiency ratio (reported efficiency ratio net of effect of non-core adjustments) for the quarter has increased to 93.1% as compared to 85.0% in the fourth quarter of 2009 primary due to the decrease in net investment income and the increase in operating expenses. Year to date the core efficiency ratio has increased to 90.4% in 2010 from 83.7% in 2009.

CONFERENCE CALL

J. Williar Dunlaevy, Chairman and Chief Executive Officer, Patrick J. Sullivan, President, and Paul H. Bruce, Chief Financial Officer, will host a conference call at 3:00 p.m. (Eastern Time)

on Thursday January 27, 2011. Persons wishing to access the conference call may do so by dialing 877-407-0778. Replays of the conference call will be available beginning January 27, 2011 at 6:00 p.m. (Eastern Time) through February 27, 2011 at 11:59 p.m. (Eastern Time) by dialing 877-660-6853 and using Account #286 and Conference ID #364753 (both numbers are needed to access the replay).

FORWARD LOOKING STATEMENTS

Certain statements herein constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are based on the beliefs and expectations of management, as well as the assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. As a result, actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, legislative and regulatory changes that adversely affect the businesses in which Legacy Bancorp is engaged and changes in the securities market. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release and the associated conference call. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise.

NON-GAAP FINANCIAL MEASURES

In addition to results presented in accordance with GAAP, this press release contains certain non-GAAP financial measures. We believe that providing certain non-GAAP financial measures, such as core efficiency ratio, provides investors with information useful in understanding our financial performance, our performance trends and financial position. A reconciliation of non-GAAP to GAAP financial measures is included in the accompanying financial tables, elsewhere in this report.

LEGACY BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share amounts)

		December 31,				December 31,
		2010				2009
		(Unaudited)
ASSETS
Cash and due from banks		$	12,186			$	11,281
Short-term investments			14,906				28,874
Cash and cash equivalents			27,092				40,155
Securities — Available for sale			185,688				167,426
Securities — Held to maturity			97				97
Restricted equity securities and other investments — at cost			16,546				17,193
Loans held for sale			3,839				706
Loans, net of allowance for loan losses of $9,010 in 2010 and $11,089 in 2009			607,102				652,628
Premises and equipment, net			19,142				19,568
Accrued interest receivable			2,631				3,306
Goodwill, net			11,558				9,730
Other intangible assets			3,625				2,654
Net deferred tax asset			12,684				10,202
Bank-owned life insurance			17,047				16,263
Foreclosed assets			2,216				1,195
Other assets			7,610				5,142
		$	916,877			$	946,265
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits:
Noninterest-bearing		$	75,116			$	75,232
Interest-bearing			610,129				576,146
Total deposits			685,245				651,378
Securities sold under agreements to repurchase			5,329				6,386
Federal Home Loan Bank advances			105,388				160,352
Mortgagors’ escrow accounts			1,211				1,058
Accrued expenses and other liabilities			8,145				5,724
Total liabilities			805,318				824,898
Commitments and contingencies
Stockholders’ Equity:
Preferred Stock ($.01 par value, 10,000,000 shares authorized, none issued or outstanding)			—				—
Common Stock ($.01 par value, 40,000,000 shares authorized and 10,308,600 issued at December 31, 2010 and December 31, 2009; 8,631,732 outstanding at December 31, 2010 and 8,734,712 outstanding at December 31, 2009)			103				103
Additional paid-in-capital			103,168				102,788
Unearned Compensation — ESOP			(6,956	)			(7,322	)
Unearned Compensation — Equity Incentive Plans			(1,053	)			(2,078	)
Retained earnings			39,114				48,998
Accumulated other comprehensive income (loss)			(233	)			711
Treasury stock, at cost (1,676,868 shares at December 31, 2010 and 1,573,888 shares at December 31, 2009)			(22,584	)			(21,833	)
Total stockholders’ equity			111,559				121,367
		$	916,877			$	946,265

LEGACY BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share amounts)

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2010				2009				2010				2009
		(Unaudited)								(Unaudited)
Interest and dividend income:
Loans		$	8,687			$	9,371			$	36,014			$	38,849
Securities:
Taxable			951				1,390				4,485				6,302
Tax-Exempt			32				167				442				656
Short-term investments			5				2				23				11
Total interest and dividend income			9,675				10,930				40,964				45,818
Interest expense:
Deposits			2,018				2,611				8,928				11,071
Federal Home Loan Bank advances			1,351				1,649				5,600				7,210
Other borrowed funds			6				15				30				67
Total interest expense			3,375				4,275				14,558				18,348
Net interest income			6,300				6,655				26,406				27,470
Provision for loan losses			2,118				2,549				10,468				4,883
Net interest income after provision for loan losses			4,182				4,106				15,938				22,587
Non-interest income:
Customer service fees			751				730				2,967				2,870
Portfolio management fees			612				284				1,968				1,007
Income from bank owned life insurance			216				292				689				710
Insurance, annuities and mutual fund fees			70				45				173				129
Gain (loss) on sales of securities, net			451				(3,273	)			2,024				(3,032	)
Impairment losses on securities, net			(3,491	)			(571	)			(3,870	)			(7,235	)
Gain (loss) on sales of loans, net			358				135				607				860
Miscellaneous			44				45				116				78
FHLB prepayment penalty			(1,481	)			—				(1,481	)			—
Total non-interest income (loss)			(2,470	)			(2,313	)			3,193				(4,613	)
Non-interest expenses:
Salaries and employee benefits			3,819				3,411				14,797				13,754
Occupancy and equipment			956				919				3,912				3,921
Data processing			731				635				2,934				2,659
Professional fees			974				319				1,924				1,083
Advertising			97				333				1,047				1,405
FDIC deposit insurance			285				301				1,109				1,491
Other general and administrative			1,607				1,217				5,320				4,519
Total non-interest expenses			8,469				7,135				31,043				28,832
Loss before income taxes			(6,757	)			(5,342	)			(11,912	)			(10,858	)
Benefit for income taxes			(2,260	)			(1,527	)			(4,016	)			(3,060	)
Net loss		$	(4,497	)		$	(3,815	)		$	(7,896	)		$	(7,798	)
Earnings (loss) per share
Basic		$	(0.57	)		$	(0.48	)		$	(0.99	)		$	(0.98	)
Diluted		$	(0.57	)		$	(0.48	)		$	(0.99	)		$	(0.98	)
Weighted average shares outstanding
Basic			7,950,583				7,966,446				7,990,167				7,977,363
Diluted			7,950,583				7,966,446				7,990,167				7,977,363

LEGACY BANCORP, INC. AND SUBSIDIARIES
SELECTED CONSOLIDATED FINANCIAL HIGHLIGHTS AND OTHER DATA
(Dollars in thousands except per share data)

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2010				2009				2010				2009
Financial Highlights:
Net interest income		$	6,300			$	6,655			$	26,406			$	27,470
Net income (loss)			(4,497	)			(3,815	)			(7,896	)			(7,798	)
Per share data:
Earnings (loss) — basic			(0.57	)			(0.48	)			(0.99	)			(0.98	)
Earnings (loss) — diluted			(0.57	)			(0.48	)			(0.99	)			(0.98	)
Dividends declared			0.05				0.05				0.20				0.20
Book value per share — end of period			12.92				13.89				12.92				13.89
Tangible book value per share — end of period			11.17				12.48				11.17				12.48
Ratios and Other Information:
Return (loss) on average assets			(1.89	)%			(1.61	)%			(0.84	)%			(0.82	)%
Return (loss) on average equity			(15.04	)%			(12.13	)%			(6.48	)%			(6.20	)%
Net interest rate spread (1)			2.65	%			2.71	%			2.79	%			2.78	%
Net interest margin (2)			2.90	%			3.05	%			3.05	%			3.13	%
Efficiency ratio (3)			120.1	%			85.0	%			96.1	%			84.9	%
Average interest-earning assets to average interest-bearing liabilities			115.98	%			117.24	%			115.86	%			116.87	%
At period end:
Stockholders’ equity		$	111,559			$	121,367
Total assets			916,877				946,265
Equity to total assets			12.2	%			12.8	%
Non-performing assets to total assets			1.63	%			2.20	%
Non-performing loans to total loans			2.07	%			2.96	%
Allowance for loan losses to non-performing loans			70.70	%			56.64	%
Allowance for loan losses to total loans			1.47	%			1.67	%
Number of full service offices			19				19

Analysis of Net Interest Margin — Fourth Quarter:

		Three Months Ended December 31, 2010												Three Months Ended December 31, 2009
		Average												Average
		Outstanding												Outstanding
		Balance				Interest				Yield/ Rate(1)				Balance				Interest				Yield/ Rate(1)
		(Dollars in thousands)
Interest-earning assets:
Loans — net (2)		$	630,428			$	8,687				5.51	%		$	658,100			$	9,371				5.70	%
Investment securities			226,283				983				1.74	%			196,888				1,557				3.16	%
Short-term investments			13,430				5				0.15	%			17,088				2				0.05	%
Total interest-earning assets			870,141				9,675				4.45	%			872,076				10,930				5.01	%
Non-interest-earning assets			79,580												73,540
Total assets		$	949,721											$	945,616
Interest-bearing liabilities:
Savings deposits		$	52,685				28				0.21	%		$	50,674				37				0.29	%
Relationship savings			141,432				214				0.61	%			125,059				355				1.14	%
Money market			65,181				87				0.53	%			63,813				139				0.87	%
NOW accounts			47,291				32				0.27	%			44,096				39				0.35	%
Certificates of deposit			296,302				1,657				2.24	%			289,687				2,041				2.82	%
Total interest-bearing deposits			602,891				2,018				1.34	%			573,329				2,611				1.82	%
Borrowed funds			147,368				1,357				3.68	%			170,523				1,664				3.90	%
Total interest-bearing liabilities			750,259				3,375				1.80	%			743,852				4,275				2.30	%
Non-interest-bearing liabilities			79,902												75,977
Total liabilities			830,161												819,829
Equity			119,560												125,787
Total liabilities and equity		$	949,721											$	945,616
Net interest income						$	6,300											$	6,655
Net interest rate spread (3)											2.65	%											2.71	%
Net interest-earning assets (4)		$	119,882											$	128,224
Net interest margin (5)											2.90	%											3.05	%
Average interest-earning assets to interest-bearing liabilities											115.98	%											117.24	%

Analysis of Net Interest Margin — Year to date:

		Twelve Months Ended December 31, 2010												Twelve Months Ended December 31, 2009
		Average												Average
		Outstanding												Outstanding
		Balance				Interest				Yield/ Rate(1)				Balance				Interest				Yield/ Rate(1)
		(Dollars in thousands)
Interest-earning assets:
Loans — net (2)		$	641,498			$	36,014				5.61	%		$	675,661			$	38,849				5.75	%
Investment securities			209,559				4,927				2.35	%			181,642				6,958				3.83	%
Short-term investments			13,959				23				0.16	%			19,165				11				0.06	%
Total interest-earning assets			865,016				40,964				4.74	%			876,468				45,818				5.23	%
Non-interest-earning assets			79,219												73,378
Total assets		$	944,235											$	949,846
Interest-bearing liabilities:
Savings deposits		$	52,076				125				0.24	%		$	50,724				170				0.34	%
Relationship savings			137,742				1,108				0.80	%			123,297				1,595				1.29	%
Money market			66,007				433				0.66	%			65,602				684				1.04	%
NOW accounts			45,647				131				0.29	%			43,527				173				0.40	%
Certificates of deposit			291,520				7,131				2.45	%			282,730				8,449				2.99	%
Total interest-bearing deposits			592,992				8,928				1.51	%			565,880				11,071				1.96	%
Borrowed funds			153,591				5,630				3.67	%			184,081				7,277				3.95	%
Total interest-bearing liabilities			746,583				14,558				1.95	%			749,961				18,348				2.45	%
Non-interest-bearing liabilities			75,848												74,007
Total liabilities			822,431												823,968
Equity			121,804												125,878
Total liabilities and equity		$	944,235											$	949,846
Net interest income						$	26,406											$	27,470
Net interest rate spread (3)											2.79	%											2.78	%
Net interest-earning assets (4)		$	118,433											$	126,507
Net interest margin (5)											3.05	%											3.13	%
Average interest-earning assets to interest-bearing liabilities											115.86	%											116.87	%

Loan Portfolio Information:

At December 31, 2010:

		Portfolio Balance								Nonperforming (NPAs)								Troubled Debt Restructurings
														% of				Included				Not Included
		Amount				Percent				Amount				Portfolio				In NPAs				In NPAs					Total
		(Dollars in thousands)
Mortgage loans on real estate:
Residential		$	276,765				45.02	%		$	4,176				1.51	%		$	—			$	356				$	356
Commercial — In market			174,621				28.40				8,128				4.65				2,451				1,568					4,019
Commercial — Out of market			50,406				8.20				—				—				—				—					—
Home equity			74,328				12.09				120				0.16				—				—					—
			576,120				93.71				12,424				2.16				2,451				1,924					4,375
Other loans:
Commercial			28,123				4.58				315				1.12				—				174					174
Consumer and other			10,518				1.71				5				0.05				—				—					—
			38,641				6.29				320				0.83				—				174					174
Total loans			614,761				100.00	%		$	12,744				2.07	%		$	2,451			$	2,098				$	4,549
Other Items:
Net deferred loan costs			1,351
Allowance for loan losses			(9,010	)
Total loans, net		$	607,102
Other information:
Other real estate owned (OREO)											2,216
Total nonperforming assets										$	14,960
Non-performing assets to total assets											1.63	%

At December 31, 2009:

		Portfolio Balance								Nonperforming (NPAs)								Troubled Debt Restructurings
														% of				Included				Not Included
		Amount				Percent				Amount				Portfolio				In NPAs				In NPAs					Total
		(Dollars in thousands)
Mortgage loans on real estate:
Residential		$	285,618				43.12	%		$	4,822				1.69	%		$	—			$	—				$	—
Commercial — In market			189,945				28.68				12,041				6.34				5,804				892					6,696
Commercial — Out of market			73,951				11.17				1,901				2.57				—				3,994					3,994
Home equity			69,625				10.51				70				0.10				—				—					—
			619,139				93.48				18,834				3.04				5,804				4,886					10,690
Other loans:
Commercial			31,373				4.74				743				2.37				100				—					100
Consumer and other			11,791				1.78				1				0.01				—				—					—
			43,164				6.52				744				1.72				100				—					100
Total loans			662,303				100.00	%		$	19,578				2.96	%		$	5,904			$	4,886				$	10,790
Other Items:
Net deferred loan costs			1,414
Allowance for loan losses			(11,089	)
Total loans, net		$	652,628
Other information:
Other real estate owned (OREO)											1,195
Total nonperforming assets										$	20,773
Non-performing assets to total assets											2.20	%

Securities and Other Investment Portfolio Composition:

		At December 31, 2010								At December 31, 2009
		Amortized								Amortized
		Cost				Fair Value				Cost				Fair Value
		(Dollars in thousands)
Securities available for sale:
Government-sponsored enterprises (GSE)		$	132,221			$	131,624			$	80,393			$	79,976
Municipal bonds			3,145				3,145				17,521				17,875
Corporate bonds and other obligations			401				402				1,321				1,351
GSE residential mortgage-backed			6,370				6,594				29,591				30,503
U.S. Government guaranteed residential mortgage-backed			42,775				42,967				33,625				33,636
Total debt securities			184,912				184,732				162,451				163,341
Marketable equity securities			888				956				3,239				4,085
Total securities available for sale			185,800				185,688				165,690				167,426
Securities held to maturity:
Other bonds and obligations			97				97				97				97
Restricted equity securities and other investments:
Federal Home Loan Bank of Boston stock			10,932				10,932				10,932				10,932
Savings Bank Life Insurance			1,709				1,709				1,709				1,709
Real estate partnerships			3,815				3,815				4,397				4,397
Other investments			90				90				155				155
Total restricted equity securities and other investments			16,546				16,546				17,193				17,193
Total securities		$	202,443			$	202,331			$	182,980			$	184,716

Deposit Accounts Composition:

		At December 31, 2010								At December 31, 2009
		Balance				Percent				Balance				Percent
		(Dollars in thousands)
Deposit type:
Demand		$	75,116				10.96	%		$	75,232				11.55	%
Regular savings			53,504				7.81				49,883				7.66
Relationship savings			142,110				20.74				125,328				19.24
Money market deposits			68,611				10.01				63,077				9.68
NOW deposits			48,197				7.03				48,546				7.45
Total transaction accounts			387,538				56.55				362,066				55.58
Term certificates less than $100,000			162,408				23.70				174,284				26.76
Term certificates $100,000 or more			135,299				19.75				115,028				17.66
Total certificate accounts			297,707				43.45				289,312				44.42
Total deposits		$	685,245				100.00	%		$	651,378				100.00	%

Reconciliation of Non-GAAP Financial Measures

This press release contains financial information determined by methods other than in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The Company’s management uses these non-GAAP measures in its analysis of the Company’s performance. These measures typically adjust GAAP performance measures to exclude significant gains or losses that are expected to be non-recurring. Because these items and their impact on the Company’s performance are difficult to predict, management believes that presentations of financial measures excluding the impact of these items provide useful supplemental information that is essential to a proper understanding of the operating results of the Company’s core businesses. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

		Three Months Ended December 31,								Twelve Months Ended December 31,
		2010				2009				2010				2009
		(Dollars in thousands)
Net Income (loss) (GAAP)		$	(4,497	)		$	(3,815	)		$	(7,896	)		$	(7,798	)
Less: (Gain) loss on sale or impairment of securities, net			3,040				3,844				1,846				10,267
Add: FHLB advance prepayment charge			1,481				—				1,481				—
Add: FDIC deposit insurance special assessment			—				—				—				423
Add: Merger related expenses			473				—				473				—
Adjustment: Income taxes related to non-recurring adjustments noted above			(1,859	)			(1,173	)			(1,362	)			(3,261	)
Adjustment to deferred tax valuation reserves			255				1,409				516				1,409
Net Income (loss) (Core)		$	(1,107	)		$	265			$	(4,942	)		$	1,040
Efficiency Ratio (As Reported)			120.1	%			85.0	%			96.1	%			84.9	%
Effect of gain or loss on sale or impairment of securities, net			—				—				—				—
Effect of FHLB advance prepayment charge			(20.4	)			—				(4.3	)			—
Effect of FDIC deposit insurance special assessment			—				—				—				(1.2	)
Effect of merger related expenses			(6.6	)			—				(1.4	)			—
Efficiency Ratio (Core)			93.1	%			85.0	%			90.4	%			83.7	%