ANNUAL LETTER TO SHAREHOLDERS
NINE MONTHS REPORT
MARCH-DECEMBER 2008

TO OUR SHAREHOLDERS AND FRIENDS,

It is our privilege to report to you the results for the period ending December 31, 2008 of Quinnipiac Bank and Trust Company. Having opened our doors to the public March 6, 2008 it is gratifying to report that in the face of severe and adverse economic conditions, we have been able to keep our bank on plan and positioned to grow successfully into the future. While conditions in major American economic sectors – financial services, real estate, construction and automotive – have been severely impaired, the local climate for small financial institutions like ours has been more favorable. We have received support from local businesses and consumers alike that has enabled us to grow our customer base, our deposits, and our loan activities in line with our business plan and we look to the future with confidence and enthusiasm.

A few highlights from our first 9 months:
- Attracted $19.4 million in deposits and growing
- Consummated $4.7 million in loans with a full pipeline going forward
- Completed year with not a single delinquency in our loan portfolio
- Controlled spending to finish the year well under expense budget projections
- Rolled out state of the art internet banking and bill payment service to consumers
- Launched our Remote Deposit Capture* product to our commercial customers

In sum we have successfully assembled all the technology tools required to keep us on the leading edge for new product offerings as we continue to pursue competitive advantage.
And when we talk about competitive advantage we would be remiss not to highlight the cornerstone of our business philosophy – relationships. To us that means the relationships we have with our customers, our community, and our employees. Without those strong bonds Quinnipiac Bank and Trust Company would be just another place to store your money. But we are much more than that and we aspire each and every day to strengthen the bonds of relationship that we have been building.

- We’ve assembled a staff of 14 employees from the local community all of whom share our vision, are part of our family, and treat our customers like family and friends.
- Senior management, our lending team, and branch personnel all are engaged with the community and fill leadership positions within important community organizations. The local Chambers of Commerce, Rotary Club, Leukemia Society and the American Heart Association, to name a few, all benefit from the presence of our bank in the community.
- We’ve developed a unique and strong relationship with SBA (Small Business Administration) providing government backed loans to local businesses which benefits our local economy and provides our bank with competitive advantage.

The first nine months in business for Quinnipiac Bank and Trust have been a success, a success we plan to build on with the help and commitment of the Board of Directors, Management, and Staff and most importantly our customers. We assure you that our pursuit of the vision to become the premier community financial institution in our region will be relentless and we thank you, our shareholders, for your continued confidence and support.

Sincerely

Mark A. Candido                                                          Paul A. Gustafson
President and Chief Executive Officer                        Chairman of the Board