8 million in employee benefit expense during the fiscal year

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Nilan, President and Chief Executive Officer commented that the loss for the fiscal year resulted in part from the one time $2.9 million recapitalization assessment of the SAIF insurance fund. In addition, as part of the Bank’s strategic restructuring of its available for sale investment securities portfolio, the Bank sold a portion of its securities portfolio at a realized loss of $2.8 million during the fiscal year. Also the Bank provided $1.8 million in employee benefit expense during the fiscal year for one time retirement benefit payments to two executive officers under a terminated deferred executive compensation plan.

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